The target for achieving zero net emissions by 2050 as part of the UN’s Sustainable Development Goals is driving countries to ramp up clean energy technologies. All nations are trying to do their best to reduce the exploitation of natural resources by making more environmentally conscious technological decisions. The COP 26 summit in Glasgow that pledged to accelerate the pace of reducing carbon emissions by ending subsidies on fossil fuels and putting a price on carbon is fueling innovations among tech startups of green energy. More and more industries worldwide, especially tech startups, are making rapid strides to produce clean energy and cut emissions by innovating processes based on profound technologies. The stock market, too, is abuzz about the prospects of clean energy stock as most of the listed companies posted healthy revenue growth.
The future of clean energy stock
The worldwide thrust on the alternative energy or green energy segment has triggered huge innovative initiatives among tech startups that are busy implementing new technologies for ensuring a carbon-free environment. From harnessing wind energy through windmills to developing solar panels and converting plastic into fuel, thousands of new technology initiatives are afoot globally to produce clean energy. As the consciousness about green energy is spreading fast, its impact on the economy becomes more visible, which indicates that clean energy fuels stock will enjoy a bullish trend in the long run.
Companies have a clear mandate to become more environmentally conscious, and investors can bank on the startups that promise good returns for a long time as the demand for green energy keeps growing.
Here are some environment-friendly company stocks that investors can rely upon for good returns.
Capstone Green Energy (CGRN)
Capstone Green Energy focuses on clean energy tech and provides a bouquet of clean energy solutions. Its products include storage solutions, conversion technology, and a range of hydrogen-based products. Moreover, the company has a significant presence in energy monitoring, maintenance, and management by providing energy as a Service (EaaS).
Penny stock investors should take note of the Capstone Green Energy stock that trades below $5. The company has recently undergone rebranding, but its financial position is not as bad as it might appear from the stock price. For the Q2 ending in September 2021, the company’s revenue was $17.2 million, accompanied by an EBITDA loss of $6.0 million.
Four analysts give the stock a Buy rating and set a target price of $13 primarily because of the opportunities to drive the demand for the EaaS business that assure higher profit margins.
Clearway Energy (CWEN)
Investors interested in clean energy fuels stock should take note of Clearway Energy, a company engaged in green energy projects with 8,000 MW of energy assets, of which 4,700 MW belong to wind and solar energy. The company has a presence in 25 US states and is one of the largest renewable energy companies.
The company’s consistent performance meets the financial objectives and assures investors of a safe investment. The company’s dividend yield of 3.58% bears enough hints of price appreciation, and the earning reports confirm to investors that the company is on its way to maintaining its good performance.
As the company’s construction projects of 2021 are heading towards timely completion and the acquisition of the Utah Solar portfolio will meet the deadlines, the growth outlook for 2022 is highly encouraging. The company hopes to announce a dividend of 5% to 8%.
Azure Power Global (AZRE)
Azure Power is an Indian company and a solar energy pioneer in the Indian subcontinent. According to JMK Research, the company is a significant player in clean energy tech despite the region being often overlooked in the renewable energy segment. As of September 30, 2021, India’s installed renewable energy capacity touched 101.53 GW, of which Azure’s share is 46%, followed by 39% in wind energy, 10% in biomass, and 5% in small hydro projects.
The company’s attractive earnings in recent times include revenue of $59.7 million is up by 13% year on year, and EBITDA of $49.3 million shows an increase of 11% year on year. Azure is a dependable, clean energy stock.
