Green energy stocks will continue soaring in popularity in line with the push towards carbon neutrality.
In recent months, though, investors have been spooked by fears over potential policy reversals following a Republican presidential win later this year. Many in the investing world feel that if former President Donald Trump takes up the reins again, he might try to repeal the Inflation Reduction Act.
However, the IRA championed across political lines and multiple industries, garnering strong bipartisan support. Hence, the outlook for renewable energy investments remains exciting, making it an opportune time to invest in the best ones.
Bear in mind that the global renewable energy market was valued at a whopping $1.21 trillion last year and could surge annually by 17.2% through 2030.
That said, here are three robust green energy stocks poised for substantial growth, offering investors a golden opportunity to build their portfolios.
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is the largest electric utility in the world and one of the top renewable energy plays.
Its stable electric utility business serves over 12 million people, adding 100,000 new customers in the first quarter alone. As a monopolistic business in Florida, it thrives on inelastic demand.
Moreover, the momentum from its strong electric utility operations bolsters its renewable energy business.
Furthermore, NextEra Energy added 2,765 megawatts to its solar and storage portfolio, with planned infrastructure investments of $85 million to $95 billion through 2025.
This aggressive expansion positions it as a leader, especially with the growing demand to effectively power advanced technologies such as data centers and AI.
Additionally, for the year, the firm forecasts adjusted EPS to range between $3.23 and $3.43, alongside a promise to increase its dividends by 10% through 2026. Therefore, NEE stock offers a robust long-term upside as one of the top green energy spaces.
Cameco (CCJ)
The conversation surrounding diversification in the energy space is heating up, which makes nuclear energy play like Cameco (NYSE:CCJ) relevant. Cameco is a top nuclear energy play extensively involved in uranium concentrate exploration, mining, and distribution.
Nuclear energy isn’t without its controversies, but it remains incredibly important to achieving the lofty green energy goals set out.
On the financial front, Cameco continues to impress, with year-over-year revenue growth at 39% in 2023.
Given these stellar results, analysts forecast sales to reach a whopping $2.25 billion this year, roughly 34% higher than current year figures. Moreover, its earnings outlook is equally promising, with analysts projecting a significant EPS growth of more than 30% to 82 cents. These figures underscore a potentially bright future for Cameco, positioning it as a giant in the evolving energy landscape.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) specializes in producing solar panels while providing comprehensive photovoltaic power plant solutions.
What sets it apart from its competition is the firm’s innovative thin-film Cadmium Telluride technology, which enhances energy efficiency while substantially lowering production costs compared with traditional silicon-based panels. This technology also performs remarkably well in high temperatures and low-light conditions, which adds to FSLR stock’s bull case.
Fundamentals are healthy for the company after it showcased tremendous performance in Q1. Revenues jumped 45% YOY, while net margins surged over 28%, up 8% from the prior-year quarter.
Moreover, the firm is positioned to capitalize on the growing demand for electricity by AI data centers. Also, with Big Tech turning to clean energy sources to power their facilities, FSLR stands to gain immensely. Additionally, with a promising outlook for the rest of 2024, FSLR will continue benefitting from strong demand for solar energy.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.