Here’s something to keep in mind. When the 2020 Olympics come around, the organizers in Tokyo, Japan are making it so the entire event is powered by 100% renewable energy. This is great news for humanity and even better news for renewable energy stocks.
The entire event, from the sporting games to the athlete’s living quarters and broadcasting center, will be powered exclusively by solar and wind power.
Why is this important for investors? Well, it’s a sign of an unprecedented future fully powered by sustainable means and without fossil fuels. It’s a sign of things to come and a sign that investing now in renewable energy stocks may be a wise decision.
Moving away from the Olympics, the city of Tokyo itself hopes to have 30% of its annual power consumption needs met by sustainable sources by 2030. This includes solar roads, a technology already in use in highways across France.
Between electric vehicles and solar-powered space stations, the world is moving in favor of sustainable energy and the “decarbonization” of our planet. We are still several years away from the day when fossil fuels will be completely obsolete—but this is why investing today in some up-and-coming renewable energy stocks is a compelling decision for investors.
Here are our picks for the next generation of energy stocks you should know about now.
Renewable Energy Stocks to Watch: SUNW Stock
At the time of writing, SUNW stock is climbing a whopping 13% and selling for $1.90 USD on the NASDAQ exchange. The corporation behind the stock, Sunworks Inc. (NASDAQ:SUNW), provides photovoltaic-based power systems for a myriad of sectors.
These range from agriculture, commercial, industrial, and even residential markets. Operating across the US in the eco-aware states of California, Nevada, Oregon, and Washington, Sunworks is one to keep on the radar. The company’s expanse of services alone make it a sought-after company in the field of solar panels. Sunworks designs, arranges, finances, integrates, installs, and manages systems great and small. Suitable for residential needs of 2 kilowatts, and larger commercial multi-megawatt projects.
Shares have already climbed from $0.26 USD to $1.80 on the NASDAQ exchange since the start of this year. In the most recent month, shares grew over 200%. Very likely, this is the beginning of a new age for Sunworks because there’s no denying that we are embarking on a future built on sustainable energy. This is made clear when we note the company’s backlog of projects that tallies close to $46.1 million USD expected in the next 12 months.
Renewable Energy Stocks to Watch: SPWR Stock
Another solar stock to consider also hails from America. SunPower Corporation (NASDAQ:SPWR) is an energy company that designs and manufactures “crystalline silicon photovoltaic cells” and solar panels. Effectively, the company utilizes an all-back-contact solar cell exclusively invented at Stanford University.
Similar to SunWorks, SunPower shares have seen astronomical growth in 2019. This renewable energy stock climbed from penny stock prices of $5 to its current price of $7.60 USD in the last five months.
The company’s technology is arguably “better” than others, but the company is looking for more manufacturing scale at present. To keep up with industry giants such as JinkoSolar (NYSE:JKS), it will need to be producing over 5 GigaWatts (GW) of energy annually, and in 2018, it deployed only 1.5 GW.
According to The Motley Fool:
“Without scale to reduce costs and increase total revenue and gross margin, SunPower simply can’t compete with these players, even if its technology is better.”
But this is why now could be the perfect time to invest in SPWR stock. The company is embarking on a year that will see it in strategic talks with potential partners to fund some of its manufacturing. If/when it secures the right deal, it should be able to leverage extra capital to become a technology hub.
SunPower will then have the capability to provide the product and equipment design to manufacturing locations and partnerships across the globe.
With that potential ahead, SPWR’s low valuation at present is attractive.
Renewable Energy Stocks to Watch: EVA Stock
A unique stock to consider is Enviva Partners (NYSE:EVA). The company is the world’s largest producer of wood pellets. From seven plants in the US, the company produces over 3 million metric tons annually. Why is this important?
Well, the pellets are sold in Europe where they are used in place of coal to produce a cleaner energy source. The outcome is an overall reduction in greenhouse gas emissions from big business and a far more sustainable, albeit unique, way to source power.
These shares have gained over 25% since the beginning of 2019. Though not the cheapest renewable energy stocks—selling for approximately $33 on the NYSE—investors will likely hold their value, as according to Investorplace, “Enviva has long-term supply contracts that provide stable cash flows.”
So there you have three different renewable energy stocks to consider. In this evolving industry do you think energy stocks offer the best opportunities for investors? What are your thoughts?
Featured Image: DepositPhotos © Andreus