Wind Stocks To Buy Extra Quality
But this may be only the beginning, given President Joe Biden's plan of deploying 30 GW of offshore wind energy in the U.S. by 2030. Plus, the Energy Information Administration (EIA) expects the the share of solar and wind renewable energy sources will grow from 13% in 2021 to 17% in 2023.
wind stocks to buy
What's more, according to a report by the University of Delaware's Special Initiative on Offshore Wind (SIOW), private-sector investment in U.S. offshore wind could reach $109 billion by the end of the decade.
With that in mind, here are three wind stocks that are well-positioned to harness this growth. To narrow down our list, we turned to the TipRanks (opens in new tab) database to find names that analysts' are upbeat on. The wind energy stocks featured here either have Buy or Strong Buy ratings from the Wall Street pros or are targeted for significant upside potential over the next 12 months. Let's take a closer look.
Brookfield Renewable Partners (BEP (opens in new tab), $41.01) operates a publicly traded, pure-play renewable power platform. It is a flagship renewable power company of alternative asset management firm Brookfield Asset Management (BAM (opens in new tab)). The company's portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia. BEP's expansive portfolio of assets has around 21,000 megawatts (MW) of installed capacity and a 62,000-MW development pipeline.
While BEP generates most of its cash flows from its hydroelectric assets, its wind and solar assets are also growing quickly. This is indicated by the fact that the company's wind energy assets generated FFO of $396 million in 2021, up 67% year-over-year and comprising 42.4% of BEP's total FFO.
Credit Suisse analyst Andrew M. Kuske thinks BEP is one of the top wind stocks, calling it "a best in class developer of long-dated renewable power, an active capital recycler and a savvy purchaser of distressed assets."
"[W]hen you look medium to long term, we continue to be big believers in the demand environment for onshore wind, and we think we're well positioned to be an important part of that going forward," said CEO Larry Culp in the company's fourth-quarter earnings call.
TPI Composites (TPIC (opens in new tab), $14.12) is an Arizona-based manufacturer of composite wind blades, catering to the wind energy market. In 2020, the company's wind blades comprised around 32% of all those sold onshore globally, on a MW-basis, excluding those sold in China.
Similar to its fellow wind energy stocks, macro headwinds persisted for TPI Composites in the fourth quarter and are likely to carry over into 2022. However, the company still achieved record net sales in 2021 of $1.73 billion versus $1.67 billion in 2020.
And TPIC Composites actually started 2022 on our short list of stocks to sell. UBS analysts, for instance, had just reduced their 12-month price targets to $20 per share from $44. TPIC has since fallen to $20, then cratered to as low as $9.23. Now, a consensus price target of $19 per share sits 35.6% higher than current prices. The upside potential to the average price target suggests that the stock could be undervalued at current levels.
Shrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks since January 2021. You can contact Shrilekha on LinkedIn."}; var triggerHydrate = function() window.sliceComponents.authorBio.hydrate(data, componentContainer); var triggerScriptLoadThenHydrate = function() if (window.sliceComponents.authorBio === undefined) var script = document.createElement('script'); script.src = ' -9-3/authorBio.js'; script.async = true; script.id = 'vanilla-slice-authorBio-component-script'; script.onload = () => window.sliceComponents.authorBio = authorBio; triggerHydrate(); ; document.head.append(script); else triggerHydrate(); if (window.lazyObserveElement) window.lazyObserveElement(componentContainer, triggerScriptLoadThenHydrate, 1500); else console.log('Could not lazy load slice JS for authorBio') } }).catch(err => console.log('Hydration Script has failed for authorBio Slice', err)); }).catch(err => console.log('Externals script failed to load', err));Shrilekha PetheSocial Links NavigationContributing Writer, Kiplinger.comShrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions. Her core competency lies in analyzing stocks across different sectors, from technology to mining, and banking to oil and gas. She holds a postgraduate degree in finance from ICFAI Business School, Pune, and is currently on her way to becoming a Certified Financial Planner. Shrilekha has been writing for TipRanks (opens in new tab) since January 2021. You can contact Shrilekha on LinkedIn (opens in new tab).
The Inflation Reduction Act (IRA) of 2022, was signed by President Biden on Aug. 16, 2022. The legislation calls for a more-than-$300-billion investment in energy and climate reform. This would be the largest federal investment in clean energy in U.S. history. Measures in the bill would invest in renewable energy infrastructure, including additional wind turbines and the manufacture of solar panels. Individuals would receive tax credits on the purchase of electric vehicles and steps taken to make homes more energy efficient.
While not as large as the crude oil or the coal markets, the wind and solar power segments are still worth billions of dollars. Additionally, since they are relatively underdeveloped, they have far more optimistic growth estimates when compared to oil, which is one of the most developed industries in the world. For instance, a research report from Allied Markets Research outlines that global wind power energy was worth $62 billion in 2019. From then to 2027, it will grow at a compounded annual growth rate (CAGR) of 9.3% and sit at an estimated $127 billion by the end of the forecast period.
Some driving factors behind this growth are the push for renewables and the fact that wind energy is far more efficient than fossil fuels; while others such as the high costs of setting up the wind turbines and their susceptibility to damage from storms are some headwinds. Asia Pacific accounted for the largest revenue share, as countries such as India and China become focused on reducing their emissions, and Europe will be the fastest growing region through a 10.7% CAGR that will outpace the broader industry. Additionally, industrial users have expressed the most interest in wind power, as it can often bring power to remote and isolated areas.
Today's piece will focus on both solar and wind power companies, and it will include firms that make equipment for the industry as well as those that harness alternate power sources. Some top picks are Berkshire Hathaway Inc. (NYSE:BRK-A), Tesla, Inc. (NASDAQ:TSLA), and Enphase Energy, Inc. (NASDAQ:ENPH).
We studied both the solar and wind power energy industries to take a look at which firms are providing their services and products. The selected companies are ranked through hedge fund holdings gathered via Insider Monkey's Q3 2022 survey of 920 funds.
Vestas Wind Systems A/S (OTCMKTS:VWDRY) is a Danish wind turbine company. The firm manufactures and sells wind power plants and other equipment. It also provides support services for its products and is headquartered in Aarhus, Denmark.
Vestas Wind Systems A/S (OTCMKTS:VWDRY) has a strong business model, through which it has neatly divided its operations into part equipment sales and part maintenance contracts. This lets the firm make money by servicing equipment even when sentiment in investing in wind power is lower. Vestas Wind Systems A/S (OTCMKTS:VWDRY) has 138 gigawatts of active wind service contracts, and an average duration of 10 years per contract - providing it with a stable source of revenue. Additionally, the firm also has $18.6 billion in equipment order backlogs and a stronger $30.8 billion in service contract backlogs - both of which provide it with stable order flows.
Northland Power Inc. (OTCMKTS:NPIFF) is a Canadian company that generates electricity from renewable power sources. These include wind, solar, natural gas, and hydro-power. The firm is headquartered in Toronto, Canada.
Siemens Energy AG (OTCMKTS:SMNEY) is a German company that is one of the oldest of its kind as it was set up in 1866 and is headquartered in Munich. The firm sells equipment such as steam and gas turbines, electrical systems, offshore wind farm connectors, wind turbine designs, and maintenance services for wind farms.
Siemens Energy AG (OTCMKTS:SMNEY)'s Gamesa segment is its largest and it accounts for 36% of the firm's revenues. This segment focuses on wind energy, and it aims to grow its non Chinese wind power installation by a whopping 28% CAGR. During its fourth fiscal quarter of 2022, Siemens Energy AG (OTCMKTS:SMNEY) reported EUR38 billion in orders for the full fiscal year, which marked a 12% annual growth at a time when Europe was struggling with record high inflation levels. Gamesa service revenue grew by 14% to EUR2.2 billion, and the segment also had strong backlogs that were worth EUR17.8 billion for the service segment. 041b061a72