Alternative energy stocks and renewable energy have been very hot topics for some time. But until recently, we have not seen a real push from investors. When considering buying energy stocks, ordinary investors will consider these to be a supplement to their investment strategy. However, entering 2021, alternative energy stocks may become the focus of attention in the industry. Much has to do with the President-elect Joe Biden. His government’s stance on fossil fuels and reduced dependence on fossil fuels has caused turmoil in energy stocks. The Biden administration has presented a $2 trillion plan to address climate change by supporting the development of solar and battery technologies, renewable energy and electric vehicles. Once a place of oil and natural gas, we have recently seen a more active and greater development of green energy. These are not just power generation companies.
It was not untill when almost all electric vehicle stocks broke out this year that investor demand for renewable energy stocks upsurged. It doesn’t matter whether the company has a prototype or even just a memorandum of understanding. If the words “electric vehicle” or “EV” are mentioned in the press release, then there interested investors pop out from everywhere.
Alternative Energy Stocks For 2021:
- Tesla Inc (NASDAQ: TSLA)
- Enphase Energy Inc (NASDAQ: ENPH)
- First Solar Inc (NASDAQ: FSLR)
- Sunrun Inc (NASDAQ: RUN)
- SunPower Corporation (NASDAQ: SPWR)
- ReneSola Ltd (NYSE: SOL)
Since the boom in electric vehicle stock, the industry has slightly slowed down. Many investors believe that Tesla’s inclusion in the S&P 500 index is a difficult situation. Because of the large amount of funds that reflect the trend of the index, companies such as JPMorgan are debating what is best for their clients. The company advised them to wait. In the past few months, even after Tesla’s forward split, the electric car manufacturer’s share price has risen by more than 640% so far this year due to the rise in Tesla’s stock price. JPMorgan Chase analyst Ryan Brinkman (Ryan Brinkman) said investors called the bank to ask if they should buy more Tesla shares. JPMorgan analysts wrote in a report to clients: “We believe that Tesla’s stock and almost all conventional indicators are greatly overvalued.” But you cannot ignore the fact that Tesla continues to perform. Net income for the quarter ending in the third quarter of this year extended the company’s consecutive quarterly profit report to 5. In the most recent quarter, the company reported net income of $331 million. More importantly, analysts at Morgan Stanley predict that by 2021, global electric vehicle sales will increase by 50% or more. Morgan Stanley analyst Adam Jonas stated in the report that next year “will be a crucial year for the adoption of electric vehicles. It will determine multiple expansions and contractions.
Morgan Stanley analyst Adam Jonas stated in the report that next year “will be a crucial year for the adoption of electric vehicles and the cancellation of (internal combustion engines). It will determine multiple expansions and contractions.
Without getting into the solar panel makers yet, we can see that infrastructure companies like Enphase Energy Inc. have gained a lot of interest. The company’s brand is built on solar system installations and has just recently launched an entire network of installers in Australia. One of the reasons to pay attention to Enphase immediately is its focus on expansion. Currently, the company has deployed systems in more than 130 countries/regions. The addition and inclusion of this Australian installation network further strengthens its global base. In addition, in the United States, the company has been focusing on strategic transactions to expand its coverage in Florida. For example, Enphase has partnered with Cutler Bay Solar to provide a 1.5 MWh battery storage system for Florida homes.
Other companies like First Solar, Sunrun and SunPower are focusing on solar and storage solutions in many markets. All three shocked analysts, as several companies have raised their price targets significantly in recent weeks. For example, First Solar saw J.P. Morgan analysts raised their target price from $94 to $101 at the beginning of this month. Oppenheimer raised Sunrun’s price target from $55 to $65 in November, and Roth Capital increased SunPower’s price target by $5.
In December, Sunpower received a US patent entitled “Layered Solar Cell Module Containing Hidden Tap Interconnects.” In fact, the ability to configure units in this way allows the company to create “super units”, which ultimately increases the efficiency of the units themselves.
The smaller cap ReneSola is another solar project company that investors should follow this year. Due to its price and stock structure, this is a more volatile stock. However, in the past 5 months, the company itself has grown. In December alone, ReneSola sold a portfolio of Polish solar parks, totaling 16 MW of projects. The company can also continue to benefit from certain global programs that can drive revenue growth.
The Ministry of Finance of China has recently announced its willingness to approve incentives for renewable energy projects. All this supports China’s policy of achieving carbon neutrality by 2060. ReneSola generated 10 approved payments in 32 of the first eligible projects. Others are currently under review. Overall, these projects involve about 90 megawatts, and the company expects further incentive payments in the new year.