CSIQ, RNW.TO, and ENPH were top for value, growth, and momentum, respectively
The alternative energy sector is comprised of companies that engage in the generation and distribution of renewable and clean energy, as well as related products and services. Examples of alternative energy sources include solar, wind, hydroelectric, and geothermal. Some of the names in the sector include companies like Spain-based Siemens Gamesa Renewable Energy S.A., New Zealand-based Meridian Energy Limited, and First Solar Inc. (FSLR). The alternative energy sector, as measured by the iShares Global Clean Energy ETF (ICLN) has outperformed the broader market over the past 12 months, rising 37.5% compared to the S&P 500’s gain of 26.6%. All figures in this story are as of January 8, 2020.
We’ll take a look at the top 3 alternative energy stocks for the first quarter with the best value, the fastest earnings growth, and the most momentum.
Best Value Alternative Energy Stocks
These are the alternative energy stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Alternative Energy Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E|
|Canadian Solar Inc. (CSIQ)||22.36||1.3||6.2|
|JinkoSolar Holding Co. Ltd. (JKS)||22.05||1.0||10.4|
|Orsted A/S (DNNGY)||32.10||41.9||12.6|
- Canadian Solar Inc.: Canadian Solar is a Canada-based solar power company that designs, manufactures, and sells solar module products that convert sunlight into electricity.
- Orsted A/S: Orsted is a Denmark-based energy company engaged in the development, construction, and operation of offshore wind farms, and also generates electricity and heat from thermal power stations. The company announced in mid-November that it is set to begin construction of the company’s first utility-scale storage project for solar and batteries, located in Andrews Country, Texas. Upon completion of the 460 megawatt Permian Energy Centre, Orsted will become the first energy company in the U.S. market to operate the full spectrum of onshore and offshore wind, solar photovoltaic and storage solutions.
- JinkoSolar Holding Co. Ltd.: JinkoSolar is a China-based solar energy company that manufactures solar products including silicon wafers, solar cells, and solar modules. The company also offers solar system integration services. JinkoSolar announced on Tuesday that it will be partnering with Shanghai Institute of Space Power-Sources (SISP) to co-develop high efficiency solar technology for both space and terrestrial applications.
Fastest Growing Alternative Energy Stocks
These are the alternative energy stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Alternative Energy Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|TransAlta Renewables Inc. (RNW.TO)||11.93||3.2||80.0|
|Vestas Wind Systems A/S (VWDRY)||32.15||18.8||73.9|
|Ormat Technologies Inc. (ORA)||74.48||3.8||42.9|
Source: TradingView; TransAlta Renewables, Vestas Wind Systems, and Ormat Technologies Investor Relations
- TransAlta Renewables Inc.: TransAlta Renewables is a Canada-based renewable energy company that engages in the development, ownership and operation of renewable power generation facilities, including wind and hydroelectric plants.
- Vestas Wind Systems A/S: Vestas Wind Systems is a Denmark-based company that engages in the development, manufacture, sale, and maintenance of wind power plants.
- Ormat Technologies Inc.: Ormat Technologies engages in the development and operation of renewable energy projects. The company provides geothermal, recovered energy, and energy management and storage solutions. The company posted YOY EPS growth of 42.9% and YOY revenue growth of 2.4% for Q3 2019.
Alternative Energy Stocks with the Most Momentum
These are the alternative energy stocks that had the highest price change the last 12 months.
|Alternative Energy Stocks with the Most Momentum|
|Price ($)||Market Cap ($)||12-Month Trailing Price Change (%)|
|Enphase Energy Inc. (ENPH)||31.06||3.8||479.3|
|SolarEdge Technologies Inc. (SEDG)||105.00||5.1||199.7|
|Ballard Power Systems Inc. (BLDP.TO)||8.23||1.9||154.8|
|iShares Global Clean Energy ETF (ICLN)||N/A||N/A||37.5|
Source: TradingView; Yahoo! Finance
- Enphase Energy Inc.: Enphase Energy provides energy management solutions. The company is engaged in the design, development, manufacture, and sale of microinverter systems for the solar photovoltaic industry. The company posted YOY revenue growth of 130.8% and earnings of $0.23 per share in Q3 2019 compared to EPS of -$0.03 for the same quarter a year ago.
- SolarEdge Technologies Inc.: SolarEdge Technologies is an Israel-based solar energy company that provides solar power optimization and photovoltaic monitoring solutions. The company provides optimizers, inverters, monitoring equipment, tools, and accessories for the purpose of power harvesting, conversion, and efficiency.
- Ballard Power Systems Inc.: Ballard Power Systems is a Canada-based energy company that designs, develops, manufactures, sells and services hydrogen fuel cells for a variety of applications.
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Yahoo! Finance. “iShares Global Clean Energy ETF (ICLN) Price Chart,” Accessed Jan. 8, 2020.
Yahoo! Finance. “S&P 500 (^GSPC) Price Chart,” Accessed Jan. 8, 2020.
Orsted A/S. “Ørsted to build landmark solar & storage project,” Accessed Jan. 8, 2020.
JinkoSolar Holding Co. Ltd. “JinkoSolar Partners With SISP to Develop Solar Cell to Be Used for Space Application,” Accessed Jan. 8, 2020.
Ormat Technologies Inc. “ORMAT TECHNOLOGIES REPORTS THIRD QUARTER 2019 FINANCIAL RESULTS,” Accessed Jan. 8, 2020.
Enphase Energy Inc. “Enphase Energy Reports Financial Results for the Third Quarter of 2019,” Page 1. Accessed Jan. 8, 2020.
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