Could these climate tech stocks have long-term growth potential?
Do You Have These Climate Tech Stocks On Your November 2021 Watchlist?
“Climate tech” is becoming an increasingly prominent term in the stock market today. Rightfully so as the need for developments in this field of tech continues to grow by the day. With the ever-present threat of global warming, governments across the globe continue to invest in climate tech. With the recent COP26 climate summit in Glasgow, focusing on the issue remains prominent. Evidently, even tech giants like Amazon (NASDAQ: AMZN) are looking into the industry now. The company currently has a $2 billion venture capital fund, gathering and growing climate tech start-ups.
For some context, climate tech, as the name suggests, is tech that is being used to address the climate crisis. In essence, this includes but is not limited to renewable energy stocks, electric vehicle (EV) developers, and related EV charging stock. Take Sunrun (NASDAQ: RUN) and Vestas (OTCMKTS: VWDRY) for instance. Both of these renewable energy firms continue to make plays in their respective businesses. Firstly, Sunrun posted stellar figures in its latest quarterly report earlier this month. In it, the company more than doubled its customer count year-over-year, passing the 600,000 mark. Not to mention, Sunrun also posted an earnings per share of 11 cents, crushing estimates of 1 cent. Secondly, Vestas, a wind turbine company, is planning to install the world’s “tallest and most powerful” wind turbine next year.
Overall, the climate tech industry remains as busy as ever. In fact, a recent report from S&P Global Market Intelligence predicts busier times ahead for the industry. Namely, the firm sees U.S. solar and wind deployments on track to hit record highs in 2022. With all this in mind, could one of these climate tech stocks be worth watching in the stock market now?
Top Climate Tech Stocks To Watch Right Now
- Daqo New Energy Corporation (NYSE: DQ)
- Brookfield Renewable Partners (NYSE: BEP)
- Plug Power Inc. (NASDAQ: PLUG)
Daqo New Energy
To begin with, we will be taking a look at the Daqo New Energy Corporation. It is a Chinese photovoltaics (PV) company that manufactures PV system components. This mainly involves monocrystalline silicon (mono-Si) and polysilicon (poly-Si). Through its mono-Si and poly-Si offerings, Daqo has and continues to provide for the needs of the global solar PV industry. Additionally, the company is also among the world’s lowest-cost producers of this climate tech. With gains of over 60% in the past year, could DQ stock be a buy now?
Well, for one thing, Daqo does not seem to be slowing down on the financial front anytime soon. In its third fiscal quarter report posted late last month, the company saw solid figures across the board. To highlight, Daqo raked in a total quarterly revenue of $585 million, marking a massive 366% year-over-year hike. Moreover, the company also saw both its net income and earnings per share skyrocket by over 1,300% year-over-year.
By and large, CEO Longgen Zhang had this to say, “The strong end-market environment, supported by favorable global policies to address climate change and rapidly increasing use of green energy, resulted in stronger-than-expected downstream demand that continues to push up polysilicon market prices.” Ideally, as Daqo looks to ride industry tailwinds, some would argue that DQ stock could have more room to run. Would you agree?
Source: TD Ameritrade TOS
Brookfield Renewable Partners
Another titan to consider in the climate tech industry now would be Brookfield Renewable Partners (BEP). The company owns a vast array of renewable power assets. According to BEP’s estimates, it operates one of the largest pure-play renewable power platforms worldwide. For a sense of scale, BEP’s portfolio consists of over 51,000 megawatts of renewable energy across its installed capacity and development pipeline. This includes its hydroelectric, solar, wind, and storage facilities spanning the Americas, Europe, and Asia. With a market cap of over $10.5 billion, BEP stock could be worth knowing now.
Notably, the company’s shares also seem to be riding the wave of clean energy hype throughout the current pandemic. Since its Covid era low, BEP stock has already more than doubled in value. Despite its current momentum, the company remains hard at work pushing boundaries. Earlier this month, BEP posted record numbers in its latest quarterly earnings call. In detail, the company reported a total revenue of $966 million for the quarter, a sizable 11% year-over-year increase.
CEO Connor Teskey cites good execution on the company’s growth opportunities as a key contributor to performance for the quarter. Teskey adds that all this demonstrates the value of BEP’s global platform that is deploying capital effectively to enhance its current position as a “leading diversified clean energy business”. If you are looking to invest in the broader renewable energy industry, would you be buying BEP stock?
Source: TD Ameritrade TOS
Plug Power will be topping off our list of the top climate tech stocks to consider now. While it may be among the newer names coming onto the scene, Plug Power brings plenty to the table in terms of climate tech. In brief, the company specializes in developing hydrogen fuel cell systems. The likes of which, in theory, could replace conventional batteries in equipment and vehicles powered by electricity. Would all this make PLUG stock worth investing in after year-to-date gains of about 30%?
While that remains to be seen, Plug Power has not been sitting idly by on the operational front. Just this month, the company provided several key updates regarding its operations. For starters, Plug Power is planning to acquire Frames Group, a leading name in turnkey systems integration for the energy sector. According to Plug Power, the move serves to significantly bolster its engineering, process, and systems integrations capabilities. Following that, the company also provided upbeat revenue guidance in its latest fiscal quarter report. According to Plug Power, its 2022 annual revenue could gain by a whopping 80% year-over-year.
Not to mention, analysts over at Morgan Stanley (NYSE: MS) appear to see more upside for PLUG stock as well. Just last week, analyst Stephen Byrd maintained an Overweight rating on the company’s shares. After considering all this on top of the company’s current partnership with Airbus, investors could be eyeing PLUG stock. Would you consider adding it to your watchlist?
Source: TD Ameritrade TOS
Originally Posted on November 16, 2021 – 3 Climate Tech Stocks To Watch In The Wake Of COP26
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