With the goal of reducing fossil fuels and achieving a cleaner climate, many nations have committed themselves to net zero status. The term refers to the balance between the amount of greenhouse gas (GHG) that’s produced and the amount that’s removed from the atmosphere.
Wind power is a viable solution to achieving this goal. The best wind stocks are the ones that can produce, install, and sell wind power in the volume and scale to meet an exponentially increasing demand. This clean energy presents a perfect opportunity to take advantage of the explosive growth still to come. Let’s explore some of the best wind stocks to buy now.
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is the world’s dominant provider of renewable energy which foresees a rapid rise in wind power. NextEra believes that wind and solar will continue to drop in price, far below any other energy source in the U.S.
With a staggering 119 wind farms currently in operation, NextEra stands out as a leader in harnessing wind energy’s potential. In Texas, NextEra is signing deals to sell energy to steel manufacturers. This move promises decarbonization for an intensely polluting industry. And in Oregon, NEE is investing in wind and solar power plus battery storage, the holy grail of renewable energy. This trifecta assures that NextEra will be able to continually supply clean power to the grid.
Financially, NextEra’s strong position is evident in their most recent earnings report. It showed revenue growth from $5.2 billion to $7.3 billion, more than a 40% expansion year over year (YOY). Their net income fared even better, going from $1.1 billion to $2.6 billion, more than 100% growth YOY.
With NextEra’s continued innovation, wind energy may soon be cheaper than all carbon-based energy sources, making them a wind stock to buy now.
General Electric (GE)
General Electric (NYSE:GE) is solidifying its position as a key player in the wind power industry.
It recently made investments to manufacture wind turbines in New York. Additionally, GE is rolling out massive 17- and 18-megawatt turbines as well. These larger turbines will be necessary to help nations achieve their net zero climate goals.
Further, General Electric is particularly notable for its global reach in wind energy. For example, it is developing an offshore wind power grid infrastructure in the Netherlands and Germany. Also, GE is pursuing typhoon certification in Japan for permission to build off-shore wind energy.
Financially, General Electric’s steady growth is reflected in their most recent earnings report, showing revenue increase from $14.1 to $16.7 billion YOY. However, the black spot on this report though is that the renewable sector is growing fast but still not profitable. Renewable energy revenue went from $3.1 to $3.8 billion, a growth of over 20%. But renewable energy still lost $359 million in the quarter.
General Electric’s highly diverse portfolio makes it one of the best wind stocks for any investor.
Eneti (NETI)
Eneti (NYSE:NETI) specializes in the installation of offshore wind power and the needed infrastructure to support it.
Recently, NETI signed a vessel reservation agreement, valued at $350 thousand per day. And it announced a merger with fellow wind provider Cadeler with the resulting company being traded on both the NYSE and Oslo Stock Exchange (OSE).
In fact, Eneti’s most recent earnings report showed revenue of $38.8 million and GAAP net loss of $49.3 million dollars. Meanwhile Cadeler’s most recent earnings report shows revenue of about $72 million dollars and profit of about $31 million dollars, assuming current exchange rates.
Truthfully, Eneti remains a speculative play, but it has a strong niche in the wind energy market. The installation of wind energy is set to grow enormously in the coming years, and if Eneti and Cadeler can grab just a piece of it, together they’ll be one of the best wind stocks to own.
On the date of publication, John Blankenhorn did not hold (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.
