Here are the 3 Best Renewable Energy Stocks to buy in July 2024, according to Wall Street analysts. With the accelerated adoption of renewable energy resources around the globe, there is a bright future for companies involved in developing and/or producing renewable energy solutions. Companies offering wind, solar, and hydropower energy solutions come under the purview of renewable energy stocks. We used the TipRanks Stock Comparison tool for Renewable and Green Energy Stocks to discover three alternative energy companies with a Strong Buy consensus rating and significant share price potential in the next twelve months.
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Economies worldwide have adopted stringent decarbonization goals, benefiting the growth of green energy companies. Let’s have a closer look at the three companies that are contributing heavily to the energy transition goals.
#1 Fluence Energy (NASDAQ:FLNC)
Fluence Energy is engaged in empowering the global clean energy transition by providing energy storage solutions. The company also offers cloud-based software solutions for renewables and energy storage. Importantly, Fluence Energy has the backing of two industry-leading companies, Siemens (DE:SIE) and AES Corp. (NYSE:AES).
In Q2 FY24 results, FLNC’s diluted loss of $0.07 per share came in line with analysts’ estimates while revenues of $623.14 million exceeded the consensus. Further, the company reaffirmed its full-year Fiscal 2024 revenue guidance of $2.7 billion to $3.3 billion and annual recurring revenue outlook of roughly $80 million. Fluence has a strong cash flow generation capability and boasts consistent double-digit gross profit margins.
The company also noted that it is on track to begin the U.S. battery module manufacturing facility in Utah this year. The plant will enhance the company’s competitive position and help Fluence Energy obtain the benefits/incentives under the Inflation Reduction Act (IRA) of 2022.
Is FLNC a Good Stock to Buy?
On TipRanks, FLNC stock has a Strong Buy consensus rating based on 12 Buys and three Hold recommendations. The average Fluence Energy price target of $30.21 implies an impressive 83.9% upside potential from current levels. Meanwhile, FLNC shares have plunged 31.1% so far in 2024.
#2 ReNew Energy Global (NASDAQ:RNW)
India-based ReNew Energy Global is one of the largest renewable companies in the world, with a clean energy portfolio of roughly 15.6GW (gigawatts) on a gross basis as of May 31. The company provides innovative and sustainable decarbonization solutions for corporates. Plus, it engages in the production of wind, solar, and hydropower and manufactures solar PV (photovoltaic) cells.
In Q4 FY24, RNW posted better-than-expected earnings and revenues. Earnings per share (EPS) of $0.02 was higher than the projected loss of $0.04. Also, revenues of $297 million easily surpassed the consensus of $241 million.
Notably, the company undertakes a capital recycling strategy under which it regularly sells assets (solar capacity), which adds to the cash flows in the form of net gain on sale of assets.
Is ReNew Energy Global a Buy?
With six unanimous Buy ratings, RNW stock commands a Strong Buy consensus rating on TipRanks. The average ReNew Energy Global price target of $8.82 implies 45.1% upside potential from current levels. Year-to-date, RNW shares have lost 19.5%.
#3 Clearway Energy, Inc. (NYSE:CWEN)
Clearway Energy claims to own one of the largest renewable energy portfolios in the U.S. The company has approximately 6,200 net MW (megawatts) of installed wind, solar, and battery energy storage systems. Plus, it owns another 2,500 net MW of environmentally-sound, highly efficient natural gas generation facilities. The company believes in rewarding shareholders with generous dividend payments.
In Q1 FY24 results, CNEW’s diluted loss of $0.02 per share came in much better than the consensus estimate of a loss of $0.25 per share. However, operating revenues of $263 million missed the consensus estimates by more than 8%.
Currently, Clearway Energy boasts an above-sector average dividend yield of 6.36%. The company increased its quarterly dividends by 1.7% to $0.41 per share. Clearway maintained that it remains on track to achieve annual dividend per share growth at the high end of 5% to 8% until 2026.
Is CWEN a Good Stock to Buy?
With six Buys and one Hold rating, CWEN stock has a Strong Buy consensus rating on TipRanks. The average Clearway Energy Class C price target of $31 implies 27.6% upside potential from current levels. CWEN shares have declined 8.4% so far in 2024.
Concluding Thoughts
The renewable energy sector is expected to witness tremendous growth in the coming years, backed by higher reliance on clean and green energy sources. Moreover, governments across the world are passing favorable regulations, which are expected to generate huge benefits for renewable energy companies. The above three renewable energy companies have won analysts’ bullish views and have solid price appreciation potential. Investors could consider them after thorough research.
