As the Russia-Ukraine conflict continues to escalate, oil prices creep higher and higher. In Europe, natural gas prices have spiked 60% in just the last few days. This reality has sparked fears of an energy crisis… and led some to highlight the need for energy independence. This trend has led to a renewed interest in alternative energy sources. As a result, clean energy stocks have been rising.
The clean energy sector saw growth late in 2021 as President Joe Biden promised investment via the Build Back Better bill. With that legislation in limbo, clean energy stocks tumbled.
Now though, it seems investors are keen to recognize the importance of solar and wind power. As global players talk about reducing reliance on Russian oil and gas, these alternate energy sources present a solution.
For those interested in this trend, clean energy stocks are natural beneficiaries. Here are three of the top names to watch.
Clean Energy Stocks to Buy: Bloom Energy (BE)
Bloom Energy, a leading name in the fuel cell market, has gained 45% in the past month.
Importantly, Wall Street is happy with Bloom’s performance. Two weeks ago, an analyst from Bank of America called for 70% upside for BE stock. InvestorPlace contributor Tezcan Gecgil named BE to a list of recently upgraded stocks to buy. She also noted that it presented investors with a clear opportunity to buy into the growing field of fuel cell technology.
These commentators are not alone. At the end of 2021, fellow InvestorPlace contributor Josh Enomoto flagged it as a long-term growth play for 2022. “Bloom stands poised to be one of the best long-term stocks, irrespective of the usual Washington gridlock,” he noted. That prediction has certainly held true so far. The company offers many products and services that can help keep cities powered, most notably, its energy server. Greentech Media reports that “a single Bloom Energy Server system can deliver 250 kilowatts of power, enough to meet the needs of a typical big-box retailer.”
Bloom’s microgrid technology offers consumers the ability to shield themselves from grid shortages, an area of increasing importance. Any investors seeking clean energy stocks to buy should have BE at the top of their lists. The company is at the forefront of the green revolution with holdings and utility that will only continue to grow.
Enphase Energy (ENPH)
The emphasis on renewable energy that we saw earlier this week pushed solar stocks into the green. Among the winners was Enphase.
A software-driven producer of energy storage solutions, the company has also made waves in the field of solar energy tech. Last week brought the announcement that Enphase was expanding its battery storage operations in New Jersey due to increasing demand.
Tezcan Gecgil recently named ENPH to a list of investments to protect against the threat of a bear market. As she noted, the company can “connect solar generation, energy storage and monitoring solutions on a single platform.” This should prove tempting for both consumers and investors as it simplifies a process that is only growing more important for home owners. Her characterization of this as a “lucrative niche” is accurate, but it could also be described as a competitive edge within the sector.
Investors should note that Enphase has also recently expanded operations to Australia. It is this type of reach, combined with growing demand, that earns ENPH a place on a list of clean energy stocks to buy.
Clean Energy Stocks to Buy: NextEra Energy (NEE)
Next Era operates “more than 170,000 megawatts of wind and solar generation in North America.” It has invested more than $20 billion in these renewable tech areas and plans to invest in further infrastructure developments. Its alternative energy centers exceed 150 in number, spanning 26 U.S. states and extending into Canada.
When he noted NEE as a renewable energy play for Q1, InvestorPlace contributor Ian Bezek noted that it boasted stable cash flows. He added that the company’s “separate arm in the construction and design of large-scale renewable power projects” provided it with an additional income stream.
Lastly, investors should consider that NEE and its peers are an investment in energy independence. However, they also allow investors to align with environmental, social and governance (ESG) trends. We saw ESG investing take off in 2021, and there is no reason to believe it won’t continue to grow in 2022. As it does, NextEra will benefit.
On the date of publication, Samuel O’Brient 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.