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5 Alternative Energy Stocks to Buy Amid Solid Industry Rally
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The increasing focus on finding clean energy sources and diminishing global reliability on fossil fuels has resulted in a surge in investment in alternative energy. Escalating climate challenges have made investments in clean energy a top priority.
Per the International Energy Agency’s (IEA) latest World Energy Investment report published in June 2024, global spending on clean energy technologies and infrastructure is likely to reach $2 trillion in 2024.
This includes renewables, electric vehicles, nuclear power, low-emission fuels and efficiency improvements. The surge in the allocation to clean energy sources is indicative of the momentum behind global economies increasing their attention toward achieving net zero carbon emissions.
Among alternative energy sources, wind energy has been making noticeable progress in the United States. Per a report by EIA, wind turbines were the source of about 10.2% of total U.S. utility-scale electricity generation in 2023.
Looking ahead, per EIA’s latest Short-Term Energy Outlook published in June 2024, wind generation in the United States is projected to increase 5% in 2024, while wind energy’s share in total electricity generation is anticipated to reach 11% by 2024-end.
Moreover, electric Vehicle (EV) plays a critical role in decarbonizing the transportation sector. Per Statista, the U.S. EV market size is expected to register a CAGR of 18.2% between 2024 and 2028. Such an impressive outlook bolsters the prospects of clean energy stocks, which offer the largest electric vehicle charging network in the United States.
The Zacks-defined Oils-Energy – Alternative Energy Industry is currently in the top 20% of the Zacks Industry Rank. In the past year, the industry has provided 30.1% returns, while its year-to-date return is 29.5%. Since it is ranked in the top half of Zacks Ranked Industries, we expect the consulting services industry to outperform the market over the next three to six months.
Our Top Picks
We have narrowed our search to five alternative energy stocks that have strong growth potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Constellation Energy Corp. (CEG - Free Report) generates and markets electricity. CEG’s operating segment consists of the Mid-Atlantic, Midwest, New York, ERCOT and Other Power Regions. CEG sells natural gas, renewable energy and other energy-related products and services. CEG serves distribution utilities, municipalities, cooperatives, and commercial, industrial, governmental, and residential customers.
Constellation Energy has an expected earnings growth rate of 52.7% for the current year. Although its revenue growth rate is negative for the current year, it is 2.4% for next year. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the last 30 days.
NextEra Energy Partners LP (NEP - Free Report) has completed several financing agreements to secure funds for acquisitions and improve financial flexibility. The passage of the Inflation Reduction Act and the use of new technology are helping NEP develop renewable projects.
NEP’s current portfolio has meaningful organic growth opportunities in the coming years. The assets acquired by NEP are providing it with additional long-term investment opportunities. A disciplined investment approach will allow NEP to expand operations, remain competitive and increase the cash distribution of its unitholders over the long term.
NextEra Energy Partners has an expected revenue and earnings growth rate of 1.9% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 22.7% over the last 60 days.
Texas Pacific Land Corp. (TPL - Free Report) is engaged in land and resource management, and water services and operations businesses. TPL’s Land and Resource Management segment manages approximately 650,000 acres of land in the State of Texas.
TPL also generates revenues from pipeline, power line and utility easements, commercial leases, material sales and seismic and temporary permits related to land uses including midstream infrastructure projects and hydrocarbon processing facilities.
Texas Pacific Land has an expected revenue and earnings growth rate of 14.7% and 20.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days.
Crescent Energy Co. (CRGY - Free Report) is an independent oil and natural gas company that acquires, explores, develops, exploits and produces crude oil and natural gas properties principally in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana and Wyoming in the United States.
CRGY has an expected revenue growth rate of 20.8% for the current year. Although its earnings growth rate is negative for the current year, it is 62.8% for next year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days.
Cheniere Energy Partners L.P. (CQP - Free Report) is the owner and operator of regasification units at the Sabine Pass LNG terminal, located in Cameron Parish, LA. CQP provides clean, secure, and affordable LNG to several entities, comprising utilities as well as integrated energy firms, all across the world. CQP’s Sabine Pass LNG terminal is North America’s first large-scale liquefied gas export facility.
Cheniere Energy Partners has an expected earnings growth rate of 74.6% for the current year. Although its revenue growth rate is negative for the current year, it is 8.4% for next year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last 30 days.
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5 Alternative Energy Stocks to Buy Amid Solid Industry Rally
The increasing focus on finding clean energy sources and diminishing global reliability on fossil fuels has resulted in a surge in investment in alternative energy. Escalating climate challenges have made investments in clean energy a top priority.
Per the International Energy Agency’s (IEA) latest World Energy Investment report published in June 2024, global spending on clean energy technologies and infrastructure is likely to reach $2 trillion in 2024.
This includes renewables, electric vehicles, nuclear power, low-emission fuels and efficiency improvements. The surge in the allocation to clean energy sources is indicative of the momentum behind global economies increasing their attention toward achieving net zero carbon emissions.
Among alternative energy sources, wind energy has been making noticeable progress in the United States. Per a report by EIA, wind turbines were the source of about 10.2% of total U.S. utility-scale electricity generation in 2023.
Looking ahead, per EIA’s latest Short-Term Energy Outlook published in June 2024, wind generation in the United States is projected to increase 5% in 2024, while wind energy’s share in total electricity generation is anticipated to reach 11% by 2024-end.
Moreover, electric Vehicle (EV) plays a critical role in decarbonizing the transportation sector. Per Statista, the U.S. EV market size is expected to register a CAGR of 18.2% between 2024 and 2028. Such an impressive outlook bolsters the prospects of clean energy stocks, which offer the largest electric vehicle charging network in the United States.
The Zacks-defined Oils-Energy – Alternative Energy Industry is currently in the top 20% of the Zacks Industry Rank. In the past year, the industry has provided 30.1% returns, while its year-to-date return is 29.5%. Since it is ranked in the top half of Zacks Ranked Industries, we expect the consulting services industry to outperform the market over the next three to six months.
Our Top Picks
We have narrowed our search to five alternative energy stocks that have strong growth potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Constellation Energy Corp. (CEG - Free Report) generates and markets electricity. CEG’s operating segment consists of the Mid-Atlantic, Midwest, New York, ERCOT and Other Power Regions. CEG sells natural gas, renewable energy and other energy-related products and services. CEG serves distribution utilities, municipalities, cooperatives, and commercial, industrial, governmental, and residential customers.
Constellation Energy has an expected earnings growth rate of 52.7% for the current year. Although its revenue growth rate is negative for the current year, it is 2.4% for next year. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the last 30 days.
NextEra Energy Partners LP (NEP - Free Report) has completed several financing agreements to secure funds for acquisitions and improve financial flexibility. The passage of the Inflation Reduction Act and the use of new technology are helping NEP develop renewable projects.
NEP’s current portfolio has meaningful organic growth opportunities in the coming years. The assets acquired by NEP are providing it with additional long-term investment opportunities. A disciplined investment approach will allow NEP to expand operations, remain competitive and increase the cash distribution of its unitholders over the long term.
NextEra Energy Partners has an expected revenue and earnings growth rate of 1.9% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 22.7% over the last 60 days.
Texas Pacific Land Corp. (TPL - Free Report) is engaged in land and resource management, and water services and operations businesses. TPL’s Land and Resource Management segment manages approximately 650,000 acres of land in the State of Texas.
TPL also generates revenues from pipeline, power line and utility easements, commercial leases, material sales and seismic and temporary permits related to land uses including midstream infrastructure projects and hydrocarbon processing facilities.
Texas Pacific Land has an expected revenue and earnings growth rate of 14.7% and 20.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days.
Crescent Energy Co. (CRGY - Free Report) is an independent oil and natural gas company that acquires, explores, develops, exploits and produces crude oil and natural gas properties principally in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana and Wyoming in the United States.
CRGY has an expected revenue growth rate of 20.8% for the current year. Although its earnings growth rate is negative for the current year, it is 62.8% for next year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days.
Cheniere Energy Partners L.P. (CQP - Free Report) is the owner and operator of regasification units at the Sabine Pass LNG terminal, located in Cameron Parish, LA. CQP provides clean, secure, and affordable LNG to several entities, comprising utilities as well as integrated energy firms, all across the world. CQP’s Sabine Pass LNG terminal is North America’s first large-scale liquefied gas export facility.
Cheniere Energy Partners has an expected earnings growth rate of 74.6% for the current year. Although its revenue growth rate is negative for the current year, it is 8.4% for next year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last 30 days.