Green energy stocks have had their trials and tribulations, but the sector has been a boon for those willing to risk volatility. It is a viable field because the political and ideological winds favor green evolution.
According to Precedence Research, the global renewable energy market will reach a valuation of $970 billion in 2022, and by 2032, the sector could exceed $2.18 trillion. If so, such expansion would correspond to a compound annual growth rate of 8.5% from 2023.
Of course, predictions are not guarantees. Still, the sector has high earning potential due to its uncertainties. If you’re into gambling, here are some green energy stocks to consider.
NextEra Energy (NEE)
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One of the leading green energy stocks, NextEra Energy (New York Stock Exchange:knee) generates and distributes electricity to retail and wholesale customers. Electricity is generated through a variety of means, including wind and solar power. Additionally, NextEra develops, constructs and operates long-term contract assets consisting of clean energy solutions.
Admittedly, NextEra has had its fair share of ups and downs. However, financially, the company has been consistently strong. NextEra’s average positive expected return over the past four quarters was 9.53%. Analysts expect earnings per share of $3.40 this year, higher than last year’s earnings of $3.17.
At the top, experts predict revenue to reach $27.86 billion. This is down about 1% from last year’s circulation of $28.11 billion, but the most optimistic target would put him at $32.68 billion. Next year, sales could reach a high of $34.34 billion.
Finally, NextEra offers a forward annual dividend yield of 3.06%. Overall, NEE is one of the top green energy stocks to buy.
Brookfield Renewable (BEP)
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Based in Toronto, Ontario, Canada. Brookfield Renewable (New York Stock Exchange:BEP) owns a portfolio of renewable power generation facilities. The company operates primarily in North America, Colombia, and Brazil. It generates electricity through means such as hydropower, wind power, solar power, and pumped hydropower. Additionally, we offer services such as renewable natural gas and carbon capture.
Now, it’s the lack of consistency that makes BEP one of the riskier ideas among green energy stocks. In his first three quarters last year, the average quarterly unexpected loss was 515.27%. However, Brookfield partially redeemed in the fourth quarter and had EPS of 1 cent. The target required a loss of 4 cents.
Analysts expect a loss of 80 cents for fiscal 2024, an unfavorable widening from last year’s loss of 32 cents. Furthermore, sales are expected to grow moderately, with sales reaching $4.97 billion. Last year’s sales were $4.92 billion.
However, fiscal 2025 revenue is expected to be $5.7 billion, an increase of 14.6% over projected 2024 sales.
Algonquin Power & Utilities (AQN)
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Headquartered in Oakville, Ontario, Canada, Algonquin Power & Utilities (New York Stock Exchange:AQN) is engaged in the business of power and utilities. It operates two segments: Regulatory Services Group and Renewable Energy Group. Algonquin primarily owns and operates regulated electricity, water distribution, and wastewater collection businesses. We also offer natural gas utility systems.
Similar to Brookfield Renewable, Algonquin’s performance was on full display during fiscal year 2023. The average unexpected return was 3.75% below parity. Analysts expect EPS of 51 cents for the current fiscal year, with a top target of 54 cents. Over the last year, the company posted earnings of 53 cents per share.
Final revenue could reach $2.94 billion, an 8.9% increase over last year’s $2.7 billion. Not only that, but the most optimistic forecast is calling for sales of $3.16 billion.
What could really entice investors is Algonquin’s forward dividend yield of 6.99%. Although the payout ratio is very high, AQN may be attractive for those who want to speculate in green energy stocks.
Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
