The global fight against climate change has fueled a surge in investor interest towards green energy stocks. Companies operating in the renewable energy sector, like wind, solar, hydrogen, electric vehicles (EVs) and energy storage continue to attract increased attention.
Tesla (NASDAQ:TSLA) has been a big proponent of this interest, as the company has far outpaced the S&P 500 over the last decade. Now, a new wave of investors who seek to contribute to a greener future possess the potential to benefit from the long term upside of these green energy giants. However, keep in mind that these businesses are often cyclical in nature, so only invest what you can afford to potentially lose.
Now, let’s discuss the 3 best green energy stocks to buy for 2024!
Linde PLC (LIN)
Linde PLC (NASDAQ:LIN) is undoubtedly one of the best green energy stocks to buy for 2024. They are the world’s largest industrial gas company, and a leading player in the chemical industry. The company serves a diverse range of industries, from healthcare and food & beverage to electronics and aerospace.
Linde’s primary business revolves around the production and distribution of various gases such as oxygen, nitrogen, hydrogen and helium. Their offerings encompass over 100 gasses and mixtures, critical for various high-tech applications. But what makes them stand out is their market share in the hydrogen infrastructure.
The company plans to invest between $7 to $9 billion in clean energy, including converting 11 to 13 assets to clean hydrogen facilities. In FY23, top line growth slowed but the company’s profits grew substantially. Operating profit hit $8 billion, with EPS up 16% to $12.59 per share. Linde has a project backlog of $8.5 billion and the Inflation Reduction Act (IRA) will help aid the deployment of new hydrogen projects. Management is guiding double digit EPS growth in FY24, and investors should keep Linde on their radar.
Ferrari N.V. (RACE)
Ferrari N.V. (NYSE:RACE) is a luxury Italian car manufacturer headquartered in Maranello, Italy. Founded in 1939 by Enzo Ferrari, the company has built a reputation for producing high-performance, luxury vehicles known for their speed and exclusivity. More recently, the company has embraced the EV ‘race’ at the helm of their new revolutionary CEO, Benedetto Vigna.
Even with the market souring on EVs over the last 12 months, Ferrari is embracing the long term future that awaits. Whether people like it or not, electric vehicles are set to gain significant market share over the next few decades. That is why Ferrari plans to release its first fully electric Ferrari GT with up to 1000 horsepower. Furthermore, the company’s core business remains strong and business is booming.
In FY23, revenue increased 17% YOY to $5.97 billion. Adjusted EBITDA margin hit a record of 38.02%, with EPS up 35% to $6.90 per share. Ferrari’s net profit exceeded $1 billion for the first time in the company’s history. Their strong clientele and order book now allows them to project far out to the 2026 fiscal year. The future remains bright, and Ferrari is set to build on its momentum ahead of releasing their first EV supercar in 2025.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) is one of the most prominent solar companies in North America, and has been in business for more than 2 decades. They have been making significant strides in the solar and energy storage market, even amidst tighter financial conditions over the last 12 to 18 months.
First Solar stands out from the crowd with its innovative thin-film photovoltaic modules. The solar panels have one of the best environmental profiles, and are manufactured using less water, energy and semiconductor material. This can result in up to 2.5 times lower carbon footprint than its competitors. The company has significantly increased its generating capacity in the last several years, and is expanding their manufacturing capabilities in the United States.
Now they’re focusing heavily on CAPEX spending for domestic expansion, including $1.1 billion committed to their fifth manufacturing facility in the U.S. As well as, $2.8 billion committed to new solar projects with plans to reach 25 GW of generating capacity by 2026. The IRA will certainly be a positive catalyst for First Solar to spur investments and jobs in the green energy sector. With the company estimated to grow revenue by at least 15%, it remains one of the top green energy stocks to buy for 2024.
On the date of publication, Terel Miles 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.
