Renewable energy stocks have taken a beating over the past year. This is due to a number of factors, including higher interest rates. And with companies releasing third-quarter earnings reports recently, the renewable energy sector has seen a number of missed profit expectations.
For example, Enphase Energy (NASDAQ:ENPH) designs, develops and installs solar panels primarily for residential use. It reported a drop in revenue of 13% compared to the previous year. SolarEdge Technologies (NASDAQ:SEDG), another leading provider of solar panel installation, reported a decrease in revenue of 13% within the same time period.
The benchmark ETF for the renewable energy sector, iShares Global Clean Energy ETF (NASDAQ:ICLN), has fallen by 31% year-to-date. Even with the favorable environment of government policies surrounding the renewable energy sector, most notably the Inflation Reduction Act, renewable energy stocks are still not able to overcome high-interest rates and issues regarding investors continuing to sell out of the industry.
But not all renewable energy stocks are a no-go right now. Here are three that are currently looking like buys.
Fluence Energy (FLNC)
Fluence Energy (NASDAQ:FLNC), headquartered in Arlington, VA, operates as an energy storage company. Their storage products include Sunstack, Gridstack, Edgestack, Gridstack Pro and Ultrastack, which are modular building blocks that operate as industrial energy storage products. Fluence provides companies with the delivery and installation of their products as well as maintenance. Fluence Energy also uses generative AI for energy bidding and asset management purposes.
Over the past year, Fluence Energy has seen a 45% jump in share price due to its position within the generative AI space and strong financial results. On Aug. 9, Fluence reported earnings for the period ending June 30, which stated that their total revenue more than tripled, and their net loss shrank by almost 50% compared to the previous year.
Array Technologies (ARRY)
Array Technologies (NASDAQ:ARRY) is located in Albuquerque, NM. They provide components for solar panel installation. Array has a number of mounting tracking systems, including DuraTrack, STI H250, OmniTrack and SmarTrack. Their most recent earnings report stated an increase in total revenue of 21% compared to the year before. And net income was $65 million. Array Technologies will report third-quarter earnings on November 7 after the market closes.
Within the last year, Array has seen growth in its share price of approximately 13%. And their stock, just like most in the renewable energy sector, has taken a hit recently, but with strong financial results, Array Technologies may be one for investors to keep an eye on.
Cleanway Energy (CWEN)
Cleanway Energy (NYSE:CWEN) is a renewable energy company that operates natural gas facilities as well as wind and solar projects.
In their recent earnings report, which was released on Nov. 2, the company stated revenue growth of 9% and net income fell by 76% compared to the year before. Cleanway Energy saw a decrease in natural gas earnings, and their income for their renewables segment was unchanged from the third quarter of 2022.
Cleanway Energy also offers a decent dividend payout at the moment. On an annual basis, it is 6.93%, with their next dividend payment of $0.40 per share, which is expected to be paid to investors on December 15.
Cleanway Energy has seen a steep decline in its share price year-to-date. It is down by 30%, which has been led by investors fleeing renewable energy companies due to an uncertain future outlook. Investors may still be interested in Cleanway due to their decent dividend payout and great valuation at this time.
As of this writing, Noah Bolton 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.
