Investors seeking to capitalize on the burgeoning momentum of renewable energy are eyeing the top renewable energy stocks to buy in 2024. As the world transitions to a greener future, the renewable energy sector is a beacon of opportunity.
With increasing global awareness of climate change and the pressing need to reduce carbon emissions, renewable energy stocks are prime investment options. These companies drive innovation, harnessing solar, hydroelectric, wind and energy storage to meet the growing demands. As government incentives and policies shift to favor the push toward renewables, investors can position their portfolios to capitalize on this trend.
Now, let’s unpack the top renewable energy stocks to surpass the mega trend in 2024.
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is a true leader in the global energy transition. It is the world’s largest wind and solar power producer, with a substantial and rapidly growing portfolio.
NextEra Energy’s commitment to renewables provides the company with significant long-term growth potential. The company has two primary subsidiaries, Florida Power & Light (FPL) and NextEra Energy Resources (NEER). FPL is the largest power utility company in Florida and NEER is their leading energy provider, with approximately 37,000 megawatts of generating capacity. NEE has been on a roll in the past year after delivering strong top and bottom-line growth in FY23. Management has been executing on all cylinders, adding 9,000 megawatts of new renewables and energy storage capacity to its backlog. Moreover, the company has steadily grown its dividend and reiterated an additional 10% growth in the 2024 fiscal year.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) stands out as one of the top renewable energy stocks to buy in 2024. The company is in a hyper-growth phase despite a slowdown in the solar market and higher interest rates.
Currently, no solar stocks on the market are as well positioned as First Solar. Most praise can be given to management’s strong execution, which continued to pay dividends for the company’s revenue growth and profitability. In FY23, revenue increased 27% YOY to $3.3 billion. Net income swelled to $830 million, or $7.74 per share. The year was much different than 2022, as management managed CAPEX quite well while scaling manufacturing capacity. They continued to make strategic R&D investments and expanded their contracted backlog for new solar projects. As management forecasts strong top and bottom line growth in 2024, FSLR stock should definitely be kept on your radar.
ON Semiconductor (ON)
ON Semiconductor (NASDAQ:ON) may not immediately come to mind when considering the best renewable energy stocks to buy. However, it plays a pivotal role in enabling the industry’s growth.
ON Semiconductor specializes in energy-efficient power management and sensor solutions essential for solar inverters, electric vehicles, and energy storage systems. The increasing integration of renewable energy systems into the power grid requires sophisticated power control and management. The company’s silicon carbide (SiC) line is uniquely positioned to drive operational and systems efficiencies in SiC-powered semiconductors. The stock has taken a beating in the last year as revenue growth was flat due to slower demand in the solar and energy storage markets. However, the stock remains extremely cheap relative to its long term growth prospects, and won’t be so cheap for long.
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.