We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Renewable Energy Stocks Poised to Beat the Market in 2024
Read MoreHide Full Article
The year 2023 proved to be a promising one for the renewable energy stocks, backed by solid installation activities and the widespread electric vehicle (EV) market boom that we have been witnessing in recent times. As we are ready to step into 2024, renewables are set to make a smooth take off, thereby bringing the spotlight on stocks like ConstellationEnergy Corporation (CEG - Free Report) , ReNew Energy Global (RNW - Free Report) and Nextracker Inc. (NXT - Free Report) .
What Drove Renewables So Far?
If we do a quick survey of how the clean energy stocks excelled in the year-to-date period, factors like rapidly increasing solar photovoltaic capacity installations, impressive onshore wind capacity additions, as well as favorable policy adoptions by governments, will be at the forefront.
Indeed, these factors were strong enough to overcome the compelling challenges like supply-chain disruption induced price hikes for shipping and polysilicon along with the rising interest rate environment observed in the U.S. economy that made borrowing costs dearer.
Moreover, the rapid adoption of EVs across the board has kept the renewable sector buoyant so far in 2023. Evidently, global sales of battery electric vehicles (BEV) and plug-in hybrids (PHEV) rose 20% year over year, according to a market research firm Rho Motion (as published in a report by Reuters).
Will the Winning Streak Continue in 2024?
Per a report by BloombergNEF, global new investment in renewable energy skyrocketed to $358 billion in the first six months of 2023, up 22% from that recorded at the beginning of the previous year. The figure reached an all-time high for any six-month period.
Such investments can be expected to duly translate into valuable expansion of the renewable energy sector the next year, thereby enabling it to efficiently continue its growth momentum.
To this end, the International Energy Agency projects cumulative world renewable capacity to reach more than 4500 gigawatts (GW) at the end of 2024 compared with 3,372 GW at the end of 2022.
Our Picks
Considering the aforementioned discussion, one may safely invest in renewable stocks that have already beat the market so far in 2023. Using our Zacks Stocks Screener, we have picked the following large-cap clean energy stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) at present. A prudent investor can keep these stocks in their portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Constellation Energy Corporation: It is the United States’ largest producer of carbon-free energy and the leading competitive retail supplier of power and energy products and services for homes and businesses across the nation. In November 2023, CEG posted its third-quarter results. Its GAAP net income improved to $731 million in the third quarter of 2023 from a reported loss of $188 million in the year-ago quarter.
CEG’s shares have risen a solid 33.8% in the year-to-date period, outperforming the S&P 500’s return of 25.1%. The stock’s long-term earnings growth rate is 26.3%. The Zacks Consensus Estimate for CEG’s 2024 sales indicates an improvement of 20% from the 2023 estimated figure.
ReNew Energy Global: It is a renewable energy power producer, which also provides end-to-end solutions in an inclusive manner in the areas of clean energy, green hydrogen, value-added energy offerings through digitalization, storage and carbon markets. On Dec 4, 2023, the company signed a Memorandum of Understanding (MoU) with the Asian Development Bank (ADB) to collaborate on climate change mitigation and adaptation projects. The MoU covers projects with investment value of more than $5.3 billion between 2023 and 2028. Such agreements will strengthen RNW’s footprint in the renewable energy space.
RNW’s shares surged a solid 36.2% in the year-to-date period, outperforming the S&P 500’s return. The stock holds a four-quarter average earnings surprise of 23.96%. The consensus estimate for RNW’s 2024 sales indicates an improvement of 29% from the 2023 estimated figure.
Nextracker: It is a provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants. On Dec 13, 2023, the company announced that it has surpassed a corporate milestone of 10 GW of smart solar trackers either operational or under fulfillment for projects located in the Middle East, Africa and India. This reflects the fact that NXT is effectively expanding its global footprint in the clean energy space.
NXT’s shares surged a massive 61.7% in the year-to-date period, outperforming the S&P 500’s return. The stock’s long-term earnings growth rate is 35.2%. The Zacks Consensus Estimate for NXT’s fiscal 2024 sales indicates an improvement of 23.2% from the previous year’s reported figure.
Image Source: Zacks Investment Research
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Renewable Energy Stocks Poised to Beat the Market in 2024
The year 2023 proved to be a promising one for the renewable energy stocks, backed by solid installation activities and the widespread electric vehicle (EV) market boom that we have been witnessing in recent times. As we are ready to step into 2024, renewables are set to make a smooth take off, thereby bringing the spotlight on stocks like Constellation Energy Corporation (CEG - Free Report) , ReNew Energy Global (RNW - Free Report) and Nextracker Inc. (NXT - Free Report) .
What Drove Renewables So Far?
If we do a quick survey of how the clean energy stocks excelled in the year-to-date period, factors like rapidly increasing solar photovoltaic capacity installations, impressive onshore wind capacity additions, as well as favorable policy adoptions by governments, will be at the forefront.
Indeed, these factors were strong enough to overcome the compelling challenges like supply-chain disruption induced price hikes for shipping and polysilicon along with the rising interest rate environment observed in the U.S. economy that made borrowing costs dearer.
Moreover, the rapid adoption of EVs across the board has kept the renewable sector buoyant so far in 2023. Evidently, global sales of battery electric vehicles (BEV) and plug-in hybrids (PHEV) rose 20% year over year, according to a market research firm Rho Motion (as published in a report by Reuters).
Will the Winning Streak Continue in 2024?
Per a report by BloombergNEF, global new investment in renewable energy skyrocketed to $358 billion in the first six months of 2023, up 22% from that recorded at the beginning of the previous year. The figure reached an all-time high for any six-month period.
Such investments can be expected to duly translate into valuable expansion of the renewable energy sector the next year, thereby enabling it to efficiently continue its growth momentum.
To this end, the International Energy Agency projects cumulative world renewable capacity to reach more than 4500 gigawatts (GW) at the end of 2024 compared with 3,372 GW at the end of 2022.
Our Picks
Considering the aforementioned discussion, one may safely invest in renewable stocks that have already beat the market so far in 2023. Using our Zacks Stocks Screener, we have picked the following large-cap clean energy stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) at present. A prudent investor can keep these stocks in their portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Constellation Energy Corporation: It is the United States’ largest producer of carbon-free energy and the leading competitive retail supplier of power and energy products and services for homes and businesses across the nation. In November 2023, CEG posted its third-quarter results. Its GAAP net income improved to $731 million in the third quarter of 2023 from a reported loss of $188 million in the year-ago quarter.
CEG’s shares have risen a solid 33.8% in the year-to-date period, outperforming the S&P 500’s return of 25.1%. The stock’s long-term earnings growth rate is 26.3%. The Zacks Consensus Estimate for CEG’s 2024 sales indicates an improvement of 20% from the 2023 estimated figure.
ReNew Energy Global: It is a renewable energy power producer, which also provides end-to-end solutions in an inclusive manner in the areas of clean energy, green hydrogen, value-added energy offerings through digitalization, storage and carbon markets. On Dec 4, 2023, the company signed a Memorandum of Understanding (MoU) with the Asian Development Bank (ADB) to collaborate on climate change mitigation and adaptation projects. The MoU covers projects with investment value of more than $5.3 billion between 2023 and 2028. Such agreements will strengthen RNW’s footprint in the renewable energy space.
RNW’s shares surged a solid 36.2% in the year-to-date period, outperforming the S&P 500’s return. The stock holds a four-quarter average earnings surprise of 23.96%. The consensus estimate for RNW’s 2024 sales indicates an improvement of 29% from the 2023 estimated figure.
Nextracker: It is a provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants. On Dec 13, 2023, the company announced that it has surpassed a corporate milestone of 10 GW of smart solar trackers either operational or under fulfillment for projects located in the Middle East, Africa and India. This reflects the fact that NXT is effectively expanding its global footprint in the clean energy space.
NXT’s shares surged a massive 61.7% in the year-to-date period, outperforming the S&P 500’s return. The stock’s long-term earnings growth rate is 35.2%. The Zacks Consensus Estimate for NXT’s fiscal 2024 sales indicates an improvement of 23.2% from the previous year’s reported figure.
Image Source: Zacks Investment Research