3 Strong Buy Green Energy Stocks to Add to Your February Must-Watch List


  • U.S. government’s positive future: Strong economy, declining inflation, and effective management of challenges demonstrate resilience and adaptability.
  • NextEra Energy (NEE): Anticipates a strong 2024 with analyst support, solid Q4 2023 financials, and a growth strategy focused on Florida’s expansion and technology investments in solar generation.
  • SolarEdge (SEDG): Dominates the U.S. rooftop solar market with its advanced technology. Despite recent challenges, its undervalued stock holds growth potential fueled by expected interest rate declines and the expanding renewable energy sector.
  • First Solar Incorporated (FSLR): A $1.1 billion dollar investment towards creating a new solar panel factory and extending a contractual partnership position for First Solar for a breakout.
energy stocks - 3 Strong Buy Green Energy Stocks to Add to Your February Must-Watch List

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The positive future of the U.S. government is highlighted by the Federal Reserve’s confidence in a strong economy and declining inflation rates. The robust job market, unexpected job additions, and the chairman’s optimism about sustained productivity growth contribute to a favorable outlook.

While challenges remain, such as managing wage pressures and potential disruptions, the overall narrative suggests that the U.S. government is successfully navigating economic complexities, demonstrating resilience and adaptability in achieving its inflation targets.

With our strong economy, you need to buy these top green stocks for maximum profits.

NextEra Energy (NEE)

Nextra Energy (NEE) website on a mobile phone screen
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NextEra Energy (NYSE:NEE) is a green energy company specializing in the generation of solar and wind energy. The stock is down 23.08% YoY, but all signs point to an excellent 2024 to come.

Yahoo! Finance reports 20 analysts with a mean 1-year price target of $73.16, ranging from $46.00 to $102.80. 13/15 analysts give NEE a buy or strong buy rating, with all firms predicting an upside as well.

NextEra is coming off of solid Q4 2023 financials, with revenue of $6.87 billion beating expectations by $550 million and growing 11.5% YoY, and EPS of $0.53 beating expectations by $0.03. 

Overall, the company is confident in its 2024 performance due to a variety of reasons, ranging from a resilient business model to a record diversity in its supply chain. Management lays out growth for the next few years as consistent and continues to expect to grow its dividend per share at 10% per year in 2024.

A large long-term growth prospect is FPL, representing two-thirds of the company. With Florida’s forecasted growth and the company’s strategic investments in modernizing its technology there and increasing solar generation by 35%, FPL stands as a solid hedge for any inflation or interest rate instabilities that 2024 may bring.

SolarEdge Technologies (SEDG) 

the solar edge logo on an iPhone. SEDG stock
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SolarEdge Technologies Inc. (NASDAQ:SEDG) is a solar-focused company recognized for its innovative approach to optimizing solar power generation. The company has gained prominence for its development of the DC-optimized inverter system, a technology that enhances the efficiency and performance of solar panels. Currently, SolarEdge holds a substantial market share, accounting for approximately 40% to 45% of the rooftop solar market in the United States.

As the global shift towards cleaner energy sources gains momentum, the renewable energy industry is anticipated to experience a compound annual growth rate (CAGR) of 14.4% from 2024 to 2030. Given SolarEdge’s established position in the solar market, the company stands to benefit from the overall expansion of the renewable energy sector in the long term.

Despite the promising outlook, SolarEdge’s stock has faced challenges in the past year, trading at $68.00. Factors contributing to this decline include high-interest rates and regulatory changes, resulting in a slowdown in solar panel installations. However, these challenges are viewed as temporary, with the expectation of a potential decline in interest rates. This anticipated shift could potentially revitalize the solar panel installation market and consequently improve SolarEdge’s stock performance.

The current downtrend in SolarEdge’s stock has positioned it as undervalued. Its Price-to-Sales (P/S) ratio (ttm) stands at approximately 1.13, significantly lower than that of its competitors.

In summary, SolarEdge’s stock presents a compelling investment opportunity. Factors such as the potential stabilization of interest rates, its comparatively low valuation, and the promising growth prospects within the renewable energy sector make SolarEdge an attractive choice for investors looking for long-term value and growth.

First Solar Incorporated (FSLR)

Person holding smartphone with logo of US renewable energy company First Solar Inc. (FSLR) on screen in front of website. Focus on phone display. Unmodified photo.
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First Solar Incorporated (NASDAQ:FSLR) is a world-leading provider of solar systems technology and solutions. Yahoo! Finance has 29 analysts predicting a 1-year price range on FSLR to be between $157.00 and $326.00, with a mean of $227.50.

FSLR presents robust financials. The company reports $801 million in revenue for Q3 2023, growing at a 27.3% 1-year CAGR. Its net profit margin is at 33.5%, which grew by over 500% YoY and is a strong indicator of profitability. Management has been crucial to improving the profitability of the company, keeping operating expenses low (8.5% YoY growth) makes the impressive net profit margin possible.

The company has partnerships and major investments in manufacturing, positioning them for further growth in 2024. Partnering with Swift Current Energy to provide 500 megawatts of its cutting-edge Series 7 solar panel modules extends a current contract between the two companies to 2028. First Solar has invested $1.1 billion into creating a fifth solar panel factory in Louisiana. Expected to open in 2025, it will increase the company’s output of its newer model solar panels.

First Solar Incorporated is a green energy stock investors want to buy in 2024 because of the company’s robust financials, a fifth solar panel factory in development, and more mentioned above.

On the date of publication, Michael Que 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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/3-strong-buy-green-energy-stocks-to-add-to-your-february-must-watch-list/.

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