The cost of new renewable energy sources is a significant factor in determining the speed of the global move away from fossil fuels. Therefore, the more affordable technology is, the more likely it will be implemented.
Besides a recent inflationary spike, solar and wind energy projects are becoming more affordable. Globally, new solar and onshore wind projects are around 40% less expensive than coal and natural gas-fired power plants, according to BloombergNEF’s worldwide utility-scale electricity generating benchmark.
Because of climate change, governments and businesses are beginning to prioritize new renewable production, keeping demand high.
In addition, because of the conflict in Ukraine, Europe’s governments have a pressing need to discover alternatives to Russian oil and gas.
Renewables have become even more appealing due to this fight since oil and natural gas prices have soared.
This post will go through the six most incredible clean energy penny stocks to purchase right now.
Meta Materials Inc.
Meta Materials Inc. focuses on intelligent photonics and smart materials (NASDAQ: MMAT). The firm’s nano-composites are used in several sectors, including aerospace, automotive, and consumer electronics. In addition, the solar industry relies largely on these nano-materials in the energy sector. Founded in 2007, Meta Materials is situated in Canada. In 2021, the firm brought in over $4 million in sales, an increase of $1.1 million from the year before.
During the first quarter of 2022, Meta Materials Inc. (NASDAQ: MMAT) reported revenue of $2.97 million, an increase of about 300 percent compared to the same time in 2017.
In the first quarter of 2022, 5 hedge funds in Insider Monkey’s database had $1.1 million invested in Meta Materials Inc. (NASDAQ: MMAT), compared to 4 in the previous quarter with $7 million invested. With 543,800 shares worth over $908,000, Atlanta-based GMT Capital is the largest stakeholder in Meta Materials Inc. (NASDAQ: MMAT) among the hedge funds monitored by Insider Monkey.
In addition to this solar project developer and operator, Molchanov mentions another firm that gets a large portion of its revenue from Europe.
A large portion of the company’s mid-to-late-stage project development pipeline is in Europe, with the largest in Poland. This nation relied heavily on Russian natural gas until the supply was shut off earlier this year.
It was proposed in May by the European Commission that by 2030, renewable energy would account for 45 percent of the total energy consumed by the European Union, that the photovoltaic solar power capacity of the EU would be doubled, and that the permitting time for major renewable energy projects would be cut in half.
A recent statement from the business said that “in Europe, our biggest market, the solar sector is receiving more favorable regulatory backing, resulting in increased market potential.”
There are hopes that ReneSola will make $100 million or more this year, up from the $80 million it made last year.
Stem (STEM, $7.79) has plummeted almost 59 percent this year. However, there’s still a lot to appreciate about one of the finest green energy stocks for the remainder of 2022 and beyond.
The San Francisco-based startup manages an intelligent and linked energy storage network. Both independent power producers and utility companies may benefit from the company’s services.
Stem’s chief financial officer, Bill Bush, said that the business is “focused on exploiting our current software tools and staff to leverage new high-margin income streams” during its first-quarter earnings call.
Stem CEO John Carrington noted, “The success of our company is founded on our distinctive software products,” in addition to this. When discussing the firm’s contractual annual recurring revenue in Q1, Carrington referred to $51.5 million in Q1, which is an increase of more than twice what it was in the fourth quarter of 2019.
Susquehanna Financial Group analyst Biju Perincheril said Stem’s “backlog, bookings and 12-month pipeline KPIs all remain solid as the firm continues to witness continuing high demand” (Positive, equivalent of Buy).
Three analysts evaluate STEM stock as a Strong Buy on Koyfin, three rates it as a Buy, and two put the stock at the “Hold” level. This is neither a “Sell” nor a “Strong Sell,” according to the market experts. Overall, Koyfin considers Stem a Strong Buy because of it.
According to Travis Miller, Morningstar’s energy and utility analyst, utilities that produce power from solar panels have struck a rough patch due to a Commerce Department inquiry into solar cells from four Southeast Asian countries.
Because of this, shares of NextEra Energy have fallen. As a result, utility stocks have lost around a quarter of a percentage point so far this year, while renewable energy shares have lost 15 percent.
According to Miller’s assessment of the stock’s current price, it had been overpriced for a long time.
As he puts it, “we believe the decline in NextEra shares presents an excellent entry opportunity.” This is a superior utility that merits a higher price than its competitors.
According to Miller, the current hurdles are simply a halt in a broader growth narrative even while government policy may have a meaningful influence on renewable energy firms.
“Renewable energy continues to increase internationally and notably in the United States,” he adds.
International provider of green energy and green technology, Ameresco (AMRC, $45.57). AMRC was founded in 2000 in Framingham, Massachusetts, and is based there.
There are a few hiccups in the works right now for the business. Due to lithium battery shortages in the US, a major Ameresco project for Southern California Edison (SCE) has been delayed. It’s hoped that a section of the 535-megawatt plant will be operational by August.
Christopher Souther (Buy), an analyst at B. Riley, isn’t overly concerned about the potential interruption. Investors should be encouraged by Ameresco’s assertion that delays in the SCE project will have no impact on the company’s revenue or margin expectations for the year 2022. The company also reported that it is “confident in continued momentum for additional projects this year,” according to the analyst.
According to the company’s CEO, George Sakellaris, “AMRC continues to profit from a huge and rising addressable market.”
All of this bodes favorably for AMRC’s financial results.
Regarding industrial stock, just one analyst at Koyfin thinks it’s a Strong Buy; eight others think it’s a Buy, two think it’s a Hold, and one thinks it’s a Strong Sell out of 12 polled. An overall Strong Buy rating from Koyfin suffices.
Albemarle (ALB, $196.00) is a leading lithium-compounds producer in the electric-vehicle revolution. Electric vehicles need lithium batteries, which is the most significant component.
ALB, of course, has reaped the benefits of this strategy. The Charlotte, North Carolina-based corporation, founded in 1887, had its fiscal 2021 sales increase by 6.4% over the previous year. In addition, the first quarter of 2022 had a 36% increase in net sales over the previous year.
However, there are certain challenges for the stock. First, the European Union (EU) announced on June 7 that it was contemplating designating lithium as a dangerous substance. According to Albemarle, the company’s German plant in Langelsheim would be compelled to shut down if this were to occur. Considering that this facility now employs 600 people and generates an estimated $500 million in yearly sales, which amounts to about 7% of ALB’s current annual sales, this would be a significant hit to the company’s bottom line.”
That decision is scheduled to be made in the latter half of 2022 or early 2023, which is a long time away. Indeed, according to Jefferies analyst Laurence Alexander, “current trends imply that Albemarle’s ASP [average selling price] may potentially climb until 2023, especially if EU & Chinese subsidies for EVs shield the business from a larger macroeconomic slump” (Buy).
Three of the 23 analysts polled by Koyfin give the materials company a Strong Buy rating, while 11 give it a Buy rating. In comparison, six people have ALB on Hold, two think it’s a Sell, and one thinks it’s a Strong Sell. They add up to a Buy recommendation for one of the top green energy stocks today.