The global energy market was valued at $1 trillion in 2023, and it is projected to reach $2.45 trillion in 2032. This represents a CAGR of 9.47% through 2032. Similarly the clean and renewable energy market was valued at $219 billion in 2021 and is predicted to reach $1.45 trillion by 2030. Meaning the sector is forecast to experience a staggering CAGR of 23.6%. Additionally, the clean energy industry will be worth over 50% of the total energy industry by 2030. If you invest in these three renewable energy stocks to buy now, you will profit as they will grow even more rapidly than the industry will.
NextEra Energy (NEE)
NextEra Energy (NASDAQ:NEE) generates clean, emissions-free electricity from seven commercial nuclear power plants in Florida, New Hampshire and Wisconsin. It’s also known as the largest producer of both solar and wind energy. And, NextEra owns and operates generating plants powered by natural gas.
NEE showed financial growth in revenue. During Q4 2023, its net income of $1.21 billion and diluted EPS of 58 cents did not show growth. However its revenue of $6.88 billion was an increase of 11.58% year-over-year (YOY).
Recently, the green energy sector has been growing rapidly due to corporations’ concern over climate change. It has also been revealed that more than $1.7 trillion was spent worldwide on clean energy. NextEra Energy is poised for a successful year as the largest solar and wind energy producer.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) is a leading solar technology company that provides photovoltaic (PV) solar solutions using its advanced technology. FSLR operates internationally and has a current market share of 12.87%.
Profits have been rising consistently, with a record-breaking $830 million in 2023. It has a profit margin of 25.03%, which is in line with the average profit margin in the solar power space. However, company growth is impressive, with a YOY quarterly growth rate of 15.60%. Additionally, its MRQ debt/equity is only 9.34%, significantly lower than the sector average of 60-70%.
The company has recently been making capital-intensive decisions, such as opening a 3.3 gigawatt manufacturing factory in India. These expansions help the local economy and FSLR primarily by lowering manufacturing costs and increasing capacity.
Investor confidence in FSLR is relatively high, with multiple bulge brackets listing it as a “Buy,” “Positive,” or “Outperform” stock. This, combined with increased manufacturing capacity and excellent financials, makes FSLR one of the renewable energy stocks to buy now.
Canadian Solar (CSIQ)
Canadian Solar (NASDAQ:CSIQ) is a renewable energy company specializing in manufacturing solar PV modules and operating large-scale solar projects.
CSIQ’s revenue in Q4 2023 was $7.6 trillion, a revenue growth of 10.93%. EBITDA growth was also impressive at 26.64%. And, the company’s EBIT Margin showed promise at 5.95%. Overall, the financials depict CSIQ as a profitable company projected to grow in both the short and long-term, making it an excellent example among renewable energy stocks to buy now.
CSIQ’s strength lies in its manufacturing, which is based solely in China. China is a leader in manufacturing PV systems and, thus, is an ideal location for Canadian Solar. CSIQ’s peers primarily manufacture in the U.S. and Europe, which comes at a higher expense. Furthermore, Canadian Solar has 3 avenues of revenue, allowing it to diversify its operations. These include project development, battery storage and solar modules, giving it an edge over competitors offering only one product.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.