4 Top Green Energy Stocks To Consider For Long-Term Investment In May -

4 Top Green Energy Stocks To Consider For Long-Term Investment In May

Apr 30, 2024Jeremy ParkinsonFinance0

Image Source: Unsplash

Decarbonising is expected to attract about $150 trillion in investments.

Here are the four top green energy stocks that may benefit from it.

A brief overview of what each of these four has to offer.

About $150 trillion is expected to go into decarbonizing the global economy over the next thirty years. Here are the top four green energy stocks that may benefit as the world executes on its commitment to that transition.

NextEra Energy Inc (NEE)
NextEra Energy is on our list of top four green energy stocks for long-term investment as it is one of the biggest names in the wind and solar energy space.The energy giant is committed to making its operations free of carbon emissions by 2045. $NEE has increased its adjusted EPS at a compound annualised rate of 10% over the past ten years while its dividend has grown at an annual rate of 11% during the same period.The solid growth rate has enabled NextEra stock to return over 225% since 2013. The strength of its balance sheet is among other reasons to own shares of this $138 billion behemoth based out of Juno Beach, Florida.Note that Wall Street currently has a consensus “overweight” rating on $NEE.

First Solar Inc (FSLR)
First Solar is another great pick in the best green energy stocks as it produces think-film solar panels suitable for utility-scale projects.The Nasdaq-listed firm is committed to improving its production capacity to be well positioned once the global central banks start to cut interest rates and the demand accelerates in response. Its new $1.10 billion Louisiana factory is expected to begin manufacturing in 2026.Even with such investments, FSLR is expected to end this year with up to $1.2 billion in cash – sufficient to expand its footprint and grow via acquisitions.More importantly, First Solar has impressive visibility in terms of future revenue as it already has contracts to sell solar panels through 2030.

Fluence Energy Inc (FLNC)
Fluence Energy is worth owning if you’re on a hunt for top green energy stocks for long-term investment because decarbonizing an economy is almost impossible without an adequate supply of energy storage products.That’s where FLNC steps in with a footprint across 47 markets globally and suppliers located not just in the United States but also in Sweden, South Korea, and China.The Virginia-based firm is expected to be a notable beneficiary of the Inflation Reduction Act as it starts battery module production at its Utah factory in the coming months.Shares of the Siemens-backed company are down nearly 30% year-to-date which also creates an opportunity to build a position in it in May at a discount.

Hannon Armstrong (HASI)
Hannon Armstrong Sustainable Infrastructure Capital Inc. is a unique name on our list of best green energy stocks for 2024.The New York listed firm dubs itself the first public company based out of the United States that focuses primarily on climate solution investments. What it does is give businesses access to capital to execute on their commitment to renewable energy.HASI’s portfolio of solar and storage investments positions it to benefit from the Inflation Reduction Act as well. According to Bruce Kahn of Shelton Capital Management:“HASI has a strong pipeline of investment assets across a plethora of renewable energy projects. Portfolio yield should continue to outpace their cost of capital, resulting in margin expansion.”More By This Author:MicroStrategy Bought 25,250 Bitcoins In Q1 Is PayPal Stock A ‘Buy’ Ahead Of Q1 Earnings Tesla Moves A Step Closer To Launching Full Self-Driving In China