Best Renewable Energy Stocks Right Now • Daily Update • Benzinga
Global warming and climate change have had an undeniable impact on people around the world. Driven by the need to reduce carbon emissions and the limited supply of fossil fuels, investors are looking to back renewable energy companies with the goal of making life sustainable for future generations. Do you want to participate in the protection of the planet? Here’s a guide to help you invest in ever-growing renewable energy stocks in the market.
Overview: Renewable Energy Stocks
Energy stocks can mainly be differentiated into 2 categories – renewable and non-renewable energy companies. But will renewable energies supplant the more traditional players in the energy market? When can this happen? Or, will more traditional energy companies be able to pivot? Because you don’t know, you need a diversified portfolio that will perform well when changes occur in the industry.
Companies that engage in the generation and distribution of energy from finite resources such as coal, oil and natural gas are considered non-renewable energy stocks. Companies that produce and distribute energy from renewable resources such as solar, biomass, wind, and water are considered renewable energy stocks. At the same time, this industry could continue to grow and provide new options for the investor.
Coal was used in the early 1800s to power ships and steam trains. Then, wood became the main source of energy in the United States. Wood was the only commercially available renewable energy resource until the first hydroelectric plant began generating electricity in 1882. However, it took a long time for renewable energy resources to catch up with the rest of the world. market. In the 2020s, it’s clear there’s a lot of work to be done, with small startups and bigger brands spreading across the world. Thus, you need to find a place where you can safely enjoy.
Even though oil prices have taken a hit over the past few years, traditional mega-cap oil companies like ExxonMobil (NYSE:XOM) and BP (NYSE:BP) are considered less risky investments. These oil and gas companies apply proven industrial processes to produce energy. The value of renewable energy stocks is comparatively more volatile due to the increasing expenditure on developing innovative technologies for more efficient and environmentally friendly power generation.
The first solar panel was developed in the mid-1900s and sparked a renewable energy revolution. Solar stocks like First Solar (NASDAQ: FSLR) and Tesla (NASDAQ: TSLA) are pioneering battery technologies that can empower cars, homes and commercial complexes at affordable prices. Investing your money in renewable energy stocks can speed up research and give oil companies a run for their money. However, there is no way of knowing which sectors of the renewable energy industry will grow or shrink.
At the same time, oil companies continue to perform well as the energy market has not tipped. This means that some energy stocks might not grow as quickly as you thought. Going long may be a better idea, but you need to monitor the performance of these assets to make sure going long is still a good idea. This means that you may need to adjust your investment strategy from time to time, as some assets will not perform well, but they could skyrocket while others may fall, given the state of the market and trends. current events.
Best Online Brokers for Renewable Energy Stocks
Online brokers offer new and seasoned investors user-friendly tools to improve their trading tactics. You can use these tools to search and filter stocks based on your financial goals. These platforms are integrated with a fully customizable stock filter. For example, you can set a price range between $0.1 and $10 to quickly find stocks under $10.
You need to be comfortable with the platform you are using. You want to fully understand how the broker works, get good customer service, and have access to your account at all times. Take a look at these online brokers to start your investing journey. When you choose the most appropriate broker for your situation, you are more likely to be comfortable with the situation. At the same time, don’t be afraid to research brokers that offer additional bonuses and benefits that you might be interested in.
Features To Look For In Renewable Energy Stock
- Earnings per share: You can calculate a company’s earnings per share (EPS) by dividing its net income by its total number of shares outstanding. Stocks with negative EPS are considered bad investments and may imply that the company is at a loss.
- P/E ratio: The Price to Earnings (P/E) ratio helps you determine whether a stock is undervalued or overvalued. The lower the P/E ratio, the better the investment. Many stocks under $5 have the lowest P/E ratios.
- Liquidity: Consider the company’s average volume of shares traded per day before making a decision. Renewable energy stocks may seem like an attractive investment, but make sure there are enough takers before buying these stocks.
- Growth potential: Remember that you want to see the growth potential of your assets. If you don’t think you have growth potential, you may want to exit these positions to protect yourself.
Make sustainable investments
Global warming and climate change have raised concerns for our environment. Renewable energy companies are leading the change with innovative technology to produce energy with the lowest carbon footprint. You can consider investing in these clean energy stocks to pave the way for a brighter and brighter future. Remember that this segment of the economy is susceptible to massive market fluctuations as it is not fully integrated with investors in the same way that an oil stock might be. You should monitor the performance of your holdings and exit positions that no longer serve you.
You can also consider renewable energy assets as a way to balance the diversity of your portfolio when also investing in non-renewable energy assets like oil and gas. Over time, you may find that your portfolio leans towards renewable assets, but you should maintain this diversity as much as possible.
Frequently Asked Questions
Are renewable energy stocks a good investment?
If you believe in renewable energy, then renewable energy stocks would be a good investment for you. The International Energy Agency predicts that 95% of the world’s energy will be renewable by 2026. They also predicted that global renewable energy capacity will increase by more than 60% from 2020 levels by by 2026. Renewables will unquestionably play a bigger role in the future than they do today.
What are renewable energy stocks?
Renewable energy stocks are shares of companies related to the renewable energy sector.
Which renewable energy stocks are good?
You can find Benzinga’s recommended list of renewable energy stocks in the list above.