Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Old house, new tech. When ambitious plans for renewable-energy adoption were laid out before the Great Recession, there were many vocal critics.
There may still be critics, but investors are now well aware that sustainable energy technologies can provide great investments. Let's survey the investing landscape for companies pursuing lucrative opportunities and developing solutions with a long-term mindset. Here are five of the best stocks you can buy in renewable energy. Throw in a dividend that has grown at a compound annual rate of 8. Investors should be aware that revenues from wind energy are largely powered by the production tax credit, or PTC, which has come under increased scrutiny as wind turbine technology has matured.
The PTC is the main culprit behind negative electricity prices in several geographies throughout the nation, which force baseload power generators nuclear and coal to produce power at a loss. Should the PTC be changed or removed, NextEra Energy could take a hit. Renewable Energy Group NASDAQ: The nation's largest biodiesel producer should be considered one of the best stocks to buy because of its efficient operations, plans for future growth in advanced renewable fuels and chemicals, and the value presented to investors.
The company wields over million gallons of annual biodiesel and renewable diesel production capacity -- 75 million gallons of which started production earlier this week -- and a development-stage synthetic biology platform taking aim at various renewable chemicals. Meanwhile, the company has plans to add nearly million gallons of annual capacity through currently planned growth projects.
Management's no-nonsense, no-hype execution of growth projects in recent years gives me confidence in Renewable Energy Group's ability to remain a leader in its field and create new opportunities in industrial biotech applications. Of course, investors must be aware of the near-term uncertainty in the biofuels markets, which poses the biggest risk to Renewable Energy Group and will result in volatile revenue and profit without greater product diversification.
It will take the better part of a decade to really ramp revenue from the company's industrial biotech platform, which could make the stock pretty volatile, or disrespected, in the meantime.
Best Renewable Energy Stocks to Watch in
SunPower remains the leader in high-quality, low-cost solar panels, which has catalyzed share gains in recent years. The company plans to expand annual manufacturing capacity by MW, with a new facility in the Philippines to capture future opportunities in both residential solar and utility-scale projects -- both of which hint that the growth is far from over.
Top 4 Alternative Energy Stocks for June (NYLD-A, MNGA) | Investopedia
For instance, SunPower has over MW of utility-scale projects sold or under contract and an additional MW under executed power purchase agreements.
That excludes additional projects under development that don't have purchase agreements in place. Meanwhile, the residential solar business, conducted via long-term leases, doesn't yet represent a meaningful revenue stream, but it does represent a great growth opportunity. Despite the growth potential, SunPower remains a highly volatile stock.
There's a good amount of uncertainty in the residential solar market -- dangling a product, service, and financial vehicle in front of homeowners doesn't guarantee success. And there's always the unknown of Chinese solar manufacturing capacity, although fellow Fool Travis Hoium has raised questions about the East's ability to compete on quality. What good is a list of the best stocks to buy in renewable energy if it excludes the company taking aftermarket stock for savage axis 270 at the fossil fuel-dependent transportation industry?
Tesla Motors has captured the imagination of investors and intrigue of customers through its efficient automobile designs, an innovative sales model, and a targeted build-out of necessary supporting infrastructure. The business strategy is solid, too, which calls for initially manufacturing high-end luxury car models to fund the development of future mass-market products and stem losses in the early years. Tesla Motors has made great strides in proving its business and technology strategies in the past several years.
It may take a few more years to develop a sustainable business and swipe substantial risks foreign exchange rates in india sbi the table, but there are few companies as courageous as this electric-vehicle maker.
Similar to SunPower, Tesla Motors remains a highly volatile stock despite its growth potential and uml diagram for online stock trading to the future of its industry transportation in this case.
There are good reasons for doubt, too, as the company's market valuation greatly exceeds that of other automakers on just about any metric, ranging from automobile production volume to annual revenue. Investors that are averse to risk may consider other equities that aren't so dependent on hope and hype.
The French energy giant doesn't make this list for its robust oil and gas operations or assets, but rather for its commitment to long-term clean energy stocks to buy and technologies that have the potential to significantly alter the energy landscape.
For instance, Total has owned nearly two-thirds of SunPower since In addition, Total owns major equity stakes in other solar and renewable fuel projects and companies. Renewable technologies have a long road ahead before they provide a meaningful share of the world's energy needs. That will require significant quantities of two things: Total has an eye on the ultra-long term projects and platforms that could take decades to be successfulwhich is a rarity for major energy companies.
That focus should allow the company to remain an energy leader for years into the future. Total will almost clean energy stocks to buy flea market woodstock ga a leader in the future of renewable energy, but it can be difficult to bag homerun investments with large companies.
Considering that oil and gas revenues will continue to drive revenue and profit for the company, investors uncomfortable with a multi-decade investing horizon could be disappointed. What to look for in renewable-energy stocks Renewable energy is here to stay, but that also makes it a tricky field to invest in.
Companies without stable and feasible business and technology strategies could promote themselves as the next big thing to capture investors, only to go bust in the long run. Similarly, each renewable energy market and investment presents a different risk and reward profile.
Investors should consider their own personal preferences and needs before building a position in any of the companies above.
What do all of these companies have in common? They're committed to long-term, sustainable business and technology strategies that provide value to their customers and shun the incremental, step-wise gains of their respective industries.
While they've already proved that renewable-energy investments can be profitable on a project, consumer, and investor basis; future growth plans could enable further gains for investors. That's why these may be five of the best stocks to buy and research in renewable energy. Maxx Chatsko owns shares of Amyris and Renewable Energy Group. The Motley Fool recommends Tesla Motors and Total and owns shares of Tesla Motors.
Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Maxx has been a contributor to Fool.
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