3 Renewable Energy Stocks to Buy Now: May 2024


  • Here are just a few of the top renewable energy stocks to buy today.
  • NexGen Energy (NXE): NXE could push even higher with growing demand for uranium.
  • Southern Copper (SCCO): Copper stocks are still benefiting from tight supply and demand issues.
  • Albemarle (ALB): With the world going green, we need as much lithium as possible.
renewable energy stocks to buy - 3 Renewable Energy Stocks to Buy Now: May 2024

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With the world fighting to go green, it just makes sense to invest in renewable energy stocks to buy.

Look at First Solar (NASDAQ:FSLR). In early April, I highlighted an opportunity in the solar stock, as it traded at around $163. Today, it’s up to around $277. 

All thanks to the news that it is well-positioned to benefit from rising electricity demand from artificial intelligence giants looking for clean power for their data centers.

In fact, according to CNBC:

“AI uses 10 times more electricity than traditional Google search, according to UBS. As electricity demand from AI grows, Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META) and Alphabet’s (NASDAQ:GOOG) Google unit has committed to buying renewable power that matches their consumption.”

That news alone could send FSLR to higher highs.

Or, look at Cameco (NYSE:CCJ), which is still benefiting from surging uranium demand. Since bottoming out in March at around $39, it’s now up to $53. Even copper stocks have been hot with President Biden’s latest tariffs on China, such as Freeport McMoRan (NYSE:FCX).

Outside of those three, here are some of top renewable energy stocks to buy and hold.

NexGen Energy (NXE)

Environmental conservation technology and approaching global sustainable ESG by clean energy and power from renewable natural resources. AI and green energy.
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The last time I mentioned NexGen Energy (NYSE:NXE), it traded at $7.25 on May 15. After testing a high of $8.14, it pulled back with the broader market. But with the uranium story hotter than ever, with demand outstripping supply, it’s still a solid long-term bet. It’s also benefiting from the news that Congress has prohibited uranium imports from Russia.

According to Energy.gov, that ban “brings us one step closer to developing a reliable supply of nuclear fuel that will be required by the United States and its allies to triple nuclear capacity by 2050.” As such, the U.S. government will reportedly ask uranium companies to bid on contracts for about $3.4 billion of domestically produced nuclear reactor fuel. 

We also have to remember the company’s CEO Leigh Curyer “emphasized the growing recognition of nuclear energy and the need for new uranium sources, positioning the Rook I project as a key supplier,” as noted by Investing.com.

Southern Copper (SCCO)

Southern Copper Corporation logo on a phone screen in front of the logo on a computer screen. SCCO stock.
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We can also jump into the copper rally, which should continue to boost Southern Copper (NYSE:SCCO).

Supply-demand issues and new Chinese tariffs sent the mining company higher-to-date. But it could race even higher with AI. 

After all, copper wires and power cables are essential for electric companies, which are seeing higher demand for energy at AI data centers.

Moreover, Gavekal Research analyst Tan Kai Xian said this about what is driving copper highler along with utility stocks:

“The electrification of everything theme, whether it be the replacement of hydrocarbons as a primary fuel source, or the use of power-hungry cloud computing to run all aspects of our economy and lives”

Copper is also seeing a boost for increased demand for renewable energy and electric vehicles, according to Bank of America (NYSE:BAC) analysts. With SCCO, I’d use recent weakness as an opportunity to buy and hold for the long haul.

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screen
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Every time I talk about renewable energy, I like to add lithium stocks, like Albemarle (NYSE:ALB) to the mix. After all, lithium will see heavy demand, which will have a positive impact on ALB.

Remember, according to Statista, by 2030, global demand for lithium is expected to pass 2.4 metric tons, which doubles the demand forecast for 2025.

By 2035, they added, demand could reach 3.8 million tons. Then, by 2040, lithium demand could increase 40 times over with expectations for increased EV adoption and energy storage needs. 

Also, while we wait for ALB to push higher, we can collect its yield of 1.25%. 

Better, the company just announced a dividend of 40 cents, which will be payable on July 1 to shareholders of record as of June 14. Adding on to this, analysts at Deutsche Bank just raised their price target on ALB to $140 with a hold rating. RBC Capital also raised its target to $157, with an outperform rating thanks to strong earnings.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-renewable-energy-stocks-to-buy-now-may-2024/.

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