Amid escalating geopolitical flashpoints, a clear lesson is emerging for western economies, which may lead to a renaissance for alternative energy stocks. The world continues to run on hydrocarbons and that might not change in the foreseeable future. Still, potential disruptions force a discussion for backup plans.
Currently, tensions in the Middle East have resulted in two nations exchanging missile attacks. For now, both sides appear to want to cool the temperature. Nevertheless, a miscalculation could send the situation spiraling out of control. Combine this matter with the military conflict in Europe and oil supply chains – particularly to western nations – could be compromised.
Granted, circumstances won’t change overnight. However, the flashpoints across multiple regions in the world gave as loud of a wake-up call as possible. With that, below are alternative energy stocks to consider.
NextEra Energy (NEE)
One of the top players among alternative energy stocks, NextEra Energy (NYSE:NEE) generates, transmits, distributes and sells electric power to retail and wholesale customers in North America. Per its public profile, the company generates electricity through wind, solar, nuclear, natural gas and other clean energy. Since the start of the year, NEE stock gained more than 4%.
To be upfront, NEE has been a volatile idea. In the past 52 weeks, shares slipped more than 18%. However, after hitting a near-term bottom in October last year, NEE has been attempting a comeback. Financially, what’s appealing here is the consistency of performance. In fiscal 2023, the company achieved an average positive earnings surprise of 9.5%.
For the current fiscal year, experts are seeking earnings per share of $3.40. That’s up solidly from last year’s result of $3.17. However, the revenue target is a bit tricky, with an average view of $27.76 billion below 2023’s print of $28.11 billion. Still, the high-side target calls for $30.73 billion. It’s one of the alternative energy stocks to keep on your radar.
Cameco (CCJ)
An important but perhaps somewhat controversial inclusion in this list of alternative energy stocks, Cameco (NYSE:CCJ) provides uranium for electricity generation. It operates through multiple segments, with its mainline uranium unit involved in the exploration for, mining, milling, purchase and sale of uranium concentrate. It also features a fuel unit that engages in the refining and fabrication of the commodity.
While nuclear energy sometimes has a rough reputation, the rising energy demands of new technologies such as artificial intelligence means that we can’t ignore uranium. Nothing truly features the extraordinary energy density of nuclear fuel. Further, the disruption in the uranium space has made CCJ attractive as long-term speculation.
For the current fiscal year, experts are looking for EPS of 89 cents. That’s a big improvement over last year’s print of 57 cents. On the top line, revenue could clock in at $2.22 billion, up a robust 18% from 2023’s tally of $1.88 billion. It’s an unignorable component of alternative energy stocks to buy.
Ormat Technologies (ORA)
One of the challenges of pure-play alternative energy stocks tied to the renewable ecosystem is intermittency. Basically, the sun doesn’t shine 24/7/365, nor does the wind blow perpetually. During the downtime, that’s a lot of utility that goes begging. That’s where Ormat Technologies (NYSE:ORA) comes into the picture.
As a specialist in geothermal energy, it could potentially address the intermittency problem. Geothermal is exactly what it sounds like — extracting energy from the earth’s core. It’s sustainable, renewable and doesn’t involve building ugly wind turbines that could impact wildlife. Notably, the company is a strong financial performer. Last fiscal year, it posted an average positive earnings surprise of 22.58%.
For fiscal 2024, covering experts believe EPS could reach $2.13. That’s a modest improvement over last year’s result of $2.08. On the other hand, the top line may rise to $888.2 million, up 7.1% from 2023’s tally of $829.42 million.
Interestingly, the following year’s most optimistic sales target calls for $1.04 billion. Thus, some patience could go a long way.
First Solar (FSLR)
A solar technology company, First Solar (NASDAQ:FSLR) provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile and internationally. Per its public profile, the company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules.
To be sure, FSLR stock presents a high-risk, high-reward profile. Last year, shares stumbled noticeably as the pressures associated with elevated inflation and borrowing costs impeded sentiment. However, if broader conditions cooperate moving forward, FSLR could swing dramatically higher. For example, in the past three quarters, the company achieved an average positive earnings surprise of 30.27%.
Interestingly, analysts are anticipating a strong year for First Solar in fiscal 2024. Specifically, they’re looking for EPS of $13.59 on sales of $4.5 billion. That’s a major jump from last year’s results of $7.74 EPS on revenue of $3.32 billion. What’s more, fiscal 2025 revenue is projected to hit $5.6 billion.
It’s still risky but it could be a compelling wager for alternative energy stocks.
Clearway Energy (CWEN)
Operating under the utility space, Clearway Energy (NYSE:CWEN) operates through Conventional and Renewables segments. Per its corporate profile, Clearway has approximately 6,000 net megawatts (MW) of installed wind, solar and energy generation projects. It also features approximately 2,500 net MW of natural gas-fired generation facilities.
To be completely upfront, Clearway is wildly risky. Since the start of the year, CWEN slipped more than 16%. Over the past 52 weeks, the security gave up nearly 27% of equity value. Therefore, you must understand the risks before getting involved. With that said, analysts rate CWEN a consensus moderate buy with a $28.50 average price target. That implies an upside of 25% from Friday’s close.
Another factor to consider is the slow revenue growth. In 2023, the company generated sales of $1.31 billion, up 10% from last year’s print of $1.19 billion. However, in 2021, company revenue was nearly $1.29 billion.
Still, the most optimistic analyst believes that CWEN has the potential to hit $37 per share. We’re talking over 62% upside potential.
Brookfield Renewable (BEPC)
Another player in the utility ecosystem, Brookfield Renewable (NYSE:BEPC) owns and operates a portfolio of renewable power and sustainable solution assets primarily in the U.S., Europe, Colombia and Brazil. According to its corporate profile, Brookfield operates hydroelectric, wind, solar and distributed energy and sustainable solutions with an installed capacity of approximately 19,161 MW.
Another risky enterprise among alternative energy stocks, BEPC stock lost 23% of equity value since the start of the year. Over the past 52 weeks, it slipped almost 33%. However, speculators are hoping that the $22 technical support line may hold. One factor that could bolster sentiment is the company’s fourth-quarter earnings report, where it posted EPS of 1 cent against an expected loss per share of 14 cents.
For the current fiscal year, analysts are looking for revenue of $6.13 billion. That’s up 21.6% from last year’s tally of $5.04 billion. Moreover, they’re seeking sales of $6.4 billion in the following year. Lastly, shares feature a moderate buy consensus view with a $31.50 average price target.
Clean Energy Fuels (CLNE)
Specializing in the refining and marketing component of the energy value chain, Clean Energy Fuels (NASDAQ:CLNE) provides natural gas as alternative fuels for vehicle fleets and related fueling solutions in the U.S. and Canada. Specifically, it supplies renewable natural gas (RNG), compressed natural gas (CNG) and liquefied natural gas (LNG) for medium and heavy-duty vehicles.
To be sure, CLNE ranks as the highest-risk, highest-reward prospect on this list of alternative energy stocks. Since the beginning of the year, CLNE suffered a loss of almost 42%. In the past 52 weeks, it’s down 48%. Of course, the idea here is that at some point, the negative acceleration will fade. It’s just that I’m not entirely sure when such a dynamic will materialize, if at all.
For the current fiscal year, experts anticipate Clean Energy to post a loss per share of 12 cents. That’s disappointing relative to the prior year’s result of a 6-cent loss. At the same time, revenue could land at $439.66 million, up 3.4% from 2023. Also, the most optimistic target calls for revenue of $504.9 million.
Finally, analysts rate shares a consensus strong buy with a $7 price target, projecting over 215% upside potential.
On the date of publication, Josh Enomoto 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.