5 wind energy actions to get ahead of the renewable energy movement
Major wind power stocks have taken hold this year as investors eagerly await the future of renewables. In fact, renewables are fast becoming the fastest growing energy source in the world, as more countries offer incentives to switch to cleaner alternatives, and it becomes more cost effective to install the equipment.
With some of the most influential countries like the US, China, and the UK all agreeing to dramatically cut emissions over the next few years, this creates ample opportunity for investors to take advantage of the potential for generational growth.
Wind power is currently the second fastest growing renewable energy source, producing 24% of the world’s clean energy. But, according to a report by the Global Wind Energy Council, the world will need to triple its output from wind power plants to meet current climate targets.
Which companies will benefit from accelerated production? Let’s take a closer look at the wind stocks that should benefit from it.
Why the wind is worth the investment
The wind energy industry is still relatively young compared to other energy industries. In the United States alone, the total amount of energy produced from wind increased from 6 billion kWh in 2000 to over 338 billion kWh in 2020, increasing by more than 5,500%.
You can see how major wind stocks are performing by checking out the First Trust Global Wind Energy ETF (NYSE: FAN). The ETF owns some of the best wind power stocks in the world. It has risen over 100% since the ETF touched just over $ 10 per share in March 2020 and currently stands at just over $ 22 per share.
US President Biden’s commitment to the wind industry is also good news for investors. The president underlined his intentions to strengthen the sector through financing and expanding employment opportunities.
If you’re looking to get involved, here are some of the best wind power stocks to grab your part of the rapidly growing clean energy movement.
# 5 Wind energy stock – Vestas Wind Systems (OTCMKTS: VWDRY)
- Market capitalization: 40.7 billion
- EPS: .37
- Revenues (2020): $ 18.1 billion
Vestas Wind Systems, the supplier of wind turbines based in Denmark, has installed more wind power than any of its competitors.
In addition, the company is well positioned to capture a good portion of the wind energy market. With wind turbines installed in 85 different countries and more than 740 GW of wind capacity around the world, new agreements are regularly signed.
2020 was a good year as Vestas Wind Systems closed the year with sales of $ 17.5 billion. This represents a record total of deliveries and an unprecedented order book. Despite last year’s growth, the company revised its revenue forecast for 2021 slightly below expectations.
# 4 Wind energy stock – Siemens AG (OTCMKTS: SIEGY)
- Market capitalization: 132.1 billion
- EPS: 4.89
- Revenues (2020): $ 67 billion
Siemens AG is a German technology giant whose services include several innovative solutions. These cover sectors such as healthcare, real estate, finance and technology.
The conglomerate is an income-generating machine operating in all major economies. The company’s latest third-quarter results show it is operating at full capacity, with orders increasing 47% to more than $ 24 billion. Revenue increased 24% to nearly $ 19 billion for the quarter.
The growth is attributable to several different aspects of the business, showing a strong portfolio of activities. After a good start to 2021, the company is now raising its forecast for the year, expecting strong demand to continue.
# 3 Wind Power Share – NextEra Energy (NYSE: NEE)
- Market capitalization: 164.5 billion
- EPS: 1.60
- Revenue (2020): $ 18 billion
Another wind stock that has a lot more to offer investors is NextEra Energy. The company has an energy portfolio made up of wind and solar energy, natural gas, etc. NextEra has established itself as one of the leading providers of clean energy in the United States. Through its largest branch – Florida Power & Light Company, the company serves over 11 million people in Florida.
The company remains competitive in the clean energy sector through its subsidiary NextEra Energy Resources. The subsidiary is the largest producer of renewable energy in the world (wind and solar). In addition, NextEra Energy Resources has a substantial share of the battery storage market.
With two profitable units in clean energy and other forms of energy, the company maintains a competitive revenue stream. Investors may also be excited to earn a good dividend yield, which is currently around 1.80%.
# 2 Wind Energy Stock – General Electric (NYSE: GE)
- Market capitalization: 116.7 billion
- EPS: (-2.59)
- Revenues (2020): $ 79.6 billion
General Electric might not be the first company that comes to mind when thinking of wind power stocks. But, believe it or not, GE is also a major supplier of wind turbines. With nearly 50,000 wind turbines installed and operational to date, GE is a solid option for investors looking to enter the world of renewable energy.
Meanwhile, organic orders have been the story of GE’s wind power unit, growing 30% year-over-year. GE’s renewable energy segment revenue increased 16% year-over-year to $ 4 billion in the second quarter.
In May, GE Renewable Energy announced that it had finalized a contract for the final phase of the Dogger Bank offshore wind farm. The contract is for 87 units of the 14 MW Haliade-X, an improved version of GE’s other wind turbine.
Wind Energy Stock # 1 – Brookfield Renewable Partners (NYSE: BEP)
- Market capitalization: 11.1B
- EPS: (-0.88)
- Revenue (2020): $ 3.8 billion
If you’re looking for the best solar and wind stocks, Brookfield Renewable Partners is worth checking out. With a diverse product selection in renewable energy sources such as wind, solar, hydro and distributed power generation, Brookfield is uniquely positioned to take advantage of the clean energy movement.
The renewable energy company is capable of generating more than 20,000 MW of energy from its various energy sources. Although hydroelectric power is Brookfield’s largest source of power, the company just announced in June that it will reopen the Shepherds Flat wind project. The reopening aims to increase energy production by 25%.
Is this the right time to invest in wind power?
Renewable energy sources are developing at an unprecedented rate. For example, the use of renewables in the United States has already overtaken that of coal in recent years. And this growth is sure to continue. These wind actions are expected to benefit from the global transition to cleaner and more sustainable sources of energy.
The First Trust Global Wind Energy ETF is down about 15% from this year’s highs in February. As these energy companies continue to see increasing demand for wind power, investors should continue to reap the benefits.
Finally, for exclusive information on wind power stocks, renewables and more, check out our Profit trends newsletter! This email newsletter provides in-depth coverage of the latest trends and advancements from industry experts David Fessler and Mathew Carr. Register today!
About Pete Johnson
Pete Johnson is a seasoned financial writer and content creator specializing in equity and derivatives research. He has over ten years of personal investment experience. Rummaging through 10-K forms and finding hidden treasures is his favorite pastime. When Pete isn’t doing stock research or writing, you may find him enjoying the outdoors or sweating while exercising.