As climate change emerges as a top global issue, interest in investing in the best green energy stocks continues to rise. With many investors on the sidelines in 2024, now is a great time to consider the companies with significant upside potential.
The green energy sector is vast, encompassing sustainable energy sources such as solar, energy storage, wind and electric vehicles (EVs). Although demand has softened in the past 24 months, these sectors will see rapid growth over the next decade. Governments and corporations across the globe are investing billions into the clean energy transition, each with their own ambitious decarbonization targets.
These investments will yield tangible outcomes for the company’s earnings results, and expansion of the sector will not be short-lived. This is a multi-decade growth opportunity that could mint new millionaires. For investors looking to multiply their wealth relatively quickly, a few players on this list can certainly help you get there.
Now, let’s discover the three best green energy stocks in July 2024.
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is a player in the green energy sector with incredible long-term upside potential. As one of the world’s largest wind and solar energy producers, NextEra has a vast footprint that positions it as a leader in space.
NextEra is a great investment opportunity for those seeking stability and growth potential. It has been operating in the green energy space for decades and continues expanding its project backlog. This includes its strategic investments in solar and energy storage projects through its subsidiaries FPL and NextEra Energy Resources. Further, CEO John Ketchum recently reported robust growth in both segments, with artificial intelligence (AI) tailwinds boosting data center power demand.
In Q2 FY24, revenue and earnings per share declined 17% and 43%, respectively. However, the company added 3,000 megawatts of new renewables and storage projects to its backlog. Eight hundred megawatts came from agreements with Alphabet (NASDAQ:GOOG, GOOGL) to meet its data center power demand. With approximately $8 billion in capital expenditures for 2024, NEE stock is among the best green energy stocks to buy in July.
ON Semiconductor (ON)
ON Semiconductor (NASDAQ:ON) is another impressive company that, based on its future growth prospects, looks extremely undervalued in 2024. The company is the backbone of green energy technologies such as solar energy storage systems and electric vehicles (EVs).
ON Semiconductor is exactly what you may think it is. It is a semiconductor company that produces advanced components integral to accelerating the green energy transition. Its product portfolio, which includes power management chips and sensors, helps improve the efficiency and performance of these technologies. Over the last decade, ON Semi’s rapid innovation in silicon carbide (SiC) technology has been a huge proponent of its success. Moreover, its diverse range of power modules and power management solutions has contributed to its strong earnings growth since the pandemic.
Additionally, the company made blockbuster investments to expand its end-to-end SiC manufacturing capacity. It is now on track to produce more than 1 million SiC wafers annually. The 14% dip in its stock price year to date appears to be a golden opportunity that long term investors simply cannot miss.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) is the last on the list as an emerging solar company that stands out among its competitors. While inflation and higher interest rates in 2023 crushed the rest of the industry, First Solar delivered record financial results.
First Solar is a green energy titan specializing in thin-film photovoltaic solar modules for residential and industrial markets. The company is vertically integrated, covering nearly all solar energy supply chain aspects. Additionally, it prides itself on its commitment to sustainability due to its technology, which has a significantly lower water and carbon footprint. This will become increasingly important as CEOs and companies across nearly every industry prioritize sustainability.
Following record earnings results in 2023, the company’s growth trajectory is gaining momentum. In the first quarter, revenue increased 45% yearly to $794 million. Net earnings skyrocketed 456% year over year to $236.7 million, with an expected sales backlog of 78.3 GW. With manufacturing capacity expansions underway in 2024, FSLR is among the best green energy stocks to buy now.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
