The International Energy Agency’s Renewables 2023 report highlights a rapid 50% expansion in renewable power capacity, driven by China, Europe, the United States, and Brazil. Solar photovoltaic (PV) and wind led this growth, underscoring the potential of strong buy renewable energy stocks. 

Despite challenges in the wind industry, solar PV costs have declined, making solar stocks particularly attractive. With reasonable valuations, many solar stocks are poised for significant gains. Evaluating financial health, growth prospects, and competitive positioning is crucial. 

In June, several renewable energy stocks received strong buy ratings from Wall Street analysts, signaling substantial returns. Government incentives and the global urgency to address the climate crisis are driving investment in solar, wind, and hydroelectric power.

 As countries strive to meet carbon emissions targets, these renewable energy stocks present intriguing growth opportunities. Here are three strong buy renewable energy stocks for June 2024, each poised to become a multi-bagger and significantly boost investor returns.

Nextracker (NXT)

Nextracker (NASDAQ:NXT) has shown strong financial performance and growth potential, earning it a strong buy rating from analysts​. The company offers integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants globally.

In Q4 FY2024, NXT reported revenue of $737 million, a 40% increase year-over-year, with adjusted EBITDA doubling to $160 million. For the fiscal year 2024, the company achieved record revenue of $2.5 billion, up 31% from the previous year. GAAP net income for the year was $496 million.

For 2024, NXT has raised its guidance significantly. The company now expects revenue between $2.425 billion and $2.475 billion, with net income forecasted to be between $374 million and $429 million. This updated guidance includes an estimated $50-80 million benefit from Inflation Reduction Act 45X tax credit vendor rebates.

NXT has a strong buy rating and there are considerable EPS and revenue increases on the horizon, per analysts.

Emeren Group (SOL)

Emeren Group (NYSE:SOL) focuses on the development and sale of solar power projects. Analysts are optimistic about its growth potential due to its strategic project locations and strong financial performance​.

The company has a pipeline of projects and IPP assets totaling over 3 GW and a storage pipeline exceeding 10 GWh across Europe, North America, and Asia​. 

In 2023, Emeren faced delayed governmental approvals impacting Q4 revenue, leading to anticipated full-year revenue of approximately $100 million and a net loss of $6-7 million. Despite this, the company achieved a positive Q4 operating cash flow and held a strong cash position of $70 million.

Emeren has issued a positive outlook for 2024. The company expects net income of approximately $26 million, driven by strategic shifts towards advanced-stage development and the commencement of building higher-return IPPs. The company aims to accelerate the monetization of its over 3 GW project pipeline.

Nano Nuclear Energy (NNE)

Nano Nuclear Energy (NASDAQ:NNE) specializes in developing micro-sized, portable nuclear reactors.

NNE came on investors’ radars last month with coverage from Benchmark analyst Michael Legg, who came with a buy rating and a $15 price target. The analyst notes growing awareness and demand for smaller modular reactors (SMRs) as their safety and applications gain public acceptance, especially with climate change initiatives favoring emission-free energy.

Legg estimates that Nano Nuclear will need $200 million in capital expenditure to complete its manufacturing buildout by 2029. The company is well-positioned to secure government funding, including $770 million from the Inflation Reduction Act for advanced nuclear fuels.

One of the biggest challenges facing the nuclear energy industry is the high capital outlay required for the construction and maintenance of traditional nuclear reactors. However, the development of SMRs is emerging as a promising solution to this issue. SMRs are designed to be more cost-effective, with lower upfront capital costs.

Companies like NNE could help become the solution to this problem and give us a cleaner form of energy.

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