Clean energy stocks have slipped in the past few months. The iShares S&P Clean Energy ETF (ICLN) has declined by about 47% below its all-time high and is trading at the lowest level since September 30th. These renewable stocks have declined mostly because of the slowing growth in the industry and the fact that most of them were overvalued. So, here are some of the best ones to collect.
Avangrid (NYSE: AGR) is an American renewable energy company valued at more than $17 billion. The company has over $39 billion in assets and operates in about 24 states. It makes its money in two segments: Avangrid Networks and Avangrid Renewables. The former operates electric and natural gas utilities and has over 3.3 million customers. The latter owns a portfolio of clean energy generation facilities.
The Avangrid stock price has dropped by about 3.57% in the past 12 months. It has also fallen from the 2021 high of $56 to the current level of $45.
Avangrid is a good clean energy stock to buy because of how profitable it is. For example, the company makes more than $600 million in net income every year from revenues of over $6 billion. Its annual revenue has also been growing at a steady pace.
Sunrun (NASDAQ: RUN) is a beaten-down clean energy stock whose price has crashed by more than 68% in the past 12 months. Precisely, the stock is trading at $24, which is lower than its all-time high of about $100.
It is easy to understand why the Sunrun stock price has collapsed sharply in the past few months. First, Sunrun’s stock outperformed itself after Biden’s victory. At the time, most investors were buying the stock because it would benefit from clean energy investments. As a result, the shares became incredibly expensive.
Second, Sunrun’s path to profitability is relatively long. While its revenue growth has been strong, its loss have increased at a faster pace. For example, it has lost over $210 million in the past four quarters.
Third, the ongoing rotation from growth to value has affected the stock. Still, there is a likelihood that the stock will bounce back in 2022 as investors buy the dip.
Enphase Energy (NASDAQ: ENPH) is a clean energy company whose share price has crashed by about 25% in the past 12 months. The stock jumped by 20% on Wednesday after the company published strong results and guidance.
The company offers a number of solutions to businesses and homeowners. For example, it offers software that enables people to sell their solar power.
There are several reasons why Enphase is a good clean energy stock. First, the company published strong quarterly results and forward guidance. Second, its valuation has improved modestly in the past few months. Third, the firm announced that it will expand its manufacturing in Europe to cater with the rising demand.
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