The Biden administration has been very aggressive in its push toward meeting the countries’ renewable energy goals. The promise of tax credits for renewable energy companies provides excellent benefits to companies in the sector, which translates to higher revenue growth. With the election season coming, this could push the industry even higher. The next question for investors now is which renewable energy stocks should you buy? 

While there are several factors that investors can consider, one of the things we like the most is analyst ratings. It’s always nice to know that the stocks you pick have Wall Street’s backing, as analyst ratings can influence the market’s perception of the stock’s viability. Hence, in this article, we will only look at those that are the cream of the crop in the renewable energy markets.

Renerable Energy Stocks to Buy: First Solar, Inc. (FSLR)

Previously known as Solar Cells Inc., First Solar, Inc. (NASDAQ:FSLR) is a photovoltaic cells (PV) solar energy solutions company that creates CdTe solar modules responsible for converting sunlight into electricity. Power producers, utility companies, and systems operators use these modules. FSLR has global manufacturing locations in Vietnam, Malaysia, and the United States. The company recently acquired an Ohio facility that will be repurposed as a distribution center. This acquisition is intended to help scale its manufacturing growth.

FSLR reported a solid 2023. Full-year net sales reached $3.3 billion, driven by higher module volumes and average selling prices. Net income per diluted share for the year reached $7.74 compared to last year’s net loss of $0.41. The company expects net sales in 2024 to range between $4.4 billion and $4.6 billion and net income per diluted share to be $13.00 to $14.00.

There are growing numbers, upbeat guidance, and a “Strong Buy” recommendation from 32 Wall Street analysts. Furthermore, it’s a no-brainer not to keep tabs on FSLR as one of the best renewable energy stocks to buy.

Green Plains Inc. (GPRE)

The third largest ethanol producer in the U.S., Green Plains Inc. (NASDAQ:GPRE), specializes in biorefining processes and agriculture technology for producing sustainable value-added ingredients. It operates in various segments, including ethanol for its ethanol production, agribusiness & energy for its commodity marketing business, and partnership segment focusing on acquisition and asset development. The recent completion of its merger with Green Plains Partnership ensures that GRPE takes complete control of the partnership and can take full control of business developments and decisions for the future of the business.

GPRE’s latest financials prove why Goldman Sachs, UBS, and Bank of America hold the stock in high regard. It reported a $7.2 million quarterly net income attributable to the company, significantly improving from the $38.6 million loss YoY. EBITDA also jumped to $44.7 million, almost 700% higher than the $5.7 million from the same period last year. In addition, GPRE reported ongoing negotiations for multi-year agreements for various products, diversification of the decarbonization strategy, and deployment of its Clean Sugar Technology™, which can reduce bio-chemical feedstock production costs by 50%. Its growing performance and potential growth catalysts excite us about GPRE’s future. Hence, we think now is the best time to consider having it in your portfolio.

Nextracker Inc. (NXT)

While Nextracker Inc. (NASDAQ:NXT) is not a renewable energy producer, it plays a pivotal role in the solar energy market and is considered the number one solar tracker company in the U.S.

Nextracker supplies clients with solar trackers and software solutions that enable solar panels to follow the sun’s movements and optimize energy generation performance. NXT’s flagship software, TrueCapture, provides customers with a self-adjusting tracker control system that uses machine learning to enhance solar power plant energy yield.

On a different note, Nextracker recently hit 10-gigawatt in energy production in India, the Middle East, and Africa, a significant regional project milestone. 

The company reached record quarterly revenues of $710.4 million, up 38% YoY. Gross profits reached record highs at $209.7 million, while adjusted EBITDA soared 168% YoY.

In addition, NXT reported record backlog numbers and continued global demand. CEO Dan Shugar highlights the company’s product differentiation and market momentum as key drivers to its success. No wonder the company increased its FY2024. It now expects revenue to be between $2.425 billion and $2.475 billion and GAAP net income to reach between $374 million and $429 million. Its strong performance, momentum, and optimistic outlook make it one of our top renewable energy stocks.

Wrapping it up, it’s no surprise Wall Street loves NXT and rates it a “Strong Buy.”

On the date of publication, Rick Orford 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.