Renewable energy is one of the fastest-growing industries in the stock market, as it is a need society has to address. For example, solar power generation is expected to grow 75% in just the next two years. The renewable energy industry is currently valued at $1.21 trillion and is expected to grow at an impressive compound annual growth rate (CAGR) of 17.2% between 2024 and 2030.
If you want to take advantage of this red-hot opportunities, here are three of the best renewable energy stocks to invest in now.
Green Plains (GPRE)
Green Plains (NASDAQ:GPRE) is a company headquartered in Omaha, Nebraska, that focuses on turning crops into biofuel. It is one of the largest biofuel companies in the world, producing nearly 1 billion gallons every year. Green Plains owns and operates 10 biorefineries in the U.S., a number that is only growing. The company is consistently expanding its operations; it opened a $70 million production facility last month in York County.
Green Plain’s financial outlook is also promising. While the company had a slightly disappointing last quarter, it is set up for success in the future. It already established that it can be profitable, and was able to grow its revenue rapidly, nearly reaching $1 billion every quarter. The company does have short-term debt that is around $110 million, though its strong cash reserves minimize this threat. With over $350 million in cash, Green Plains can still focus on growth.
Brookfield Renewable (BEP)
Brookfield Renewable (NYSE:BEP) is one of the largest American companies in the hydroelectric industry. Its business model includes selling hydroelectric energy through signing long-term power purchase agreements. Because of this, Brookfield generally makes predictable and reliable returns. It is constantly expanding its reach and output, whether it be through installing solar panels in Goose Prairie or building infrastructure for hydroelectric energy in Rumford falls.
Brookfield Renewable’s financial standing further supports the buy recommendation. The company’s revenue is continuously growing at a fast rate, showing that it is far from peaking. Just in the past quarter, revenue grew from $1.32 billion to $1.49 billion. Additionally, the company provides an impressive dividend of nearly 6%, which provides investors with more stability and potential for returns. Though the company was not profitable in the last quarter, it has shown that it is able to make profit in the past, suggesting that if it continues on this path it will soon reach profitability.
Linde (LIN)
Linde (NYSE:LIN) is a U.K. company that is a leader in the hydrogen energy space. It is a pioneer in expanding and developing hydrogen energy, and has impressive size to show for it. Linde is the first company in the world to set up a hydrogen fueling system for trains and have hydrogen stations throughout the world. Just two months ago, it announced that it signed a record 53 on-site projects in 2023. These projects represent capex of $270 million, showing its commitment to growth.
Linde’s stellar financials also make it a buy. First, Linde is the biggest company in the industry, valued at over $200 billion. Its large size makes it more competitive in the race to optimize hydrogen energy.
Additionally, it has very strong profit margins, last quarter surpassing 20%. This large profit allows Linde to reinvest into its business and continuously become even more dominant.
On the date of publication, Tomas Levani 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.