2 Green Energy Stocks to BUY, 2 to AVOID

With the increasing adoption of green energy by businesses and households and supportive environmental steps under the Green New Deal announced by the Biden administration, the green energy sector is likely to gain further momentum in the near term…

Amid this green wave, Plug Power, Inc. (PLUG) and SunPower Corporation (SPWR) have been reporting promising results as demand for clean energy is stronger than ever. These two stocks have immense upside potential left based on their strong revenue performance, as small and large businesses alike are aggressively trying to reduce their carbon footprint.

However, SolarEdge Technologies, Inc. (SEDG) and JinkoSolar Holding Co., Ltd. (JKS) that belong to the same industry have been underperforming. They have reported lower revenues and earnings compared to their peers, thereby losing market share. Since these two stocks have been declining, it is advisable to avoid them for now.

Plug Power, Inc. (PLUG)

PLUG is a leading provider of hydrogen fuel cell turnkey solutions and fuel processing technologies for the electric mobility and stationary power markets in North America and Europe. The company provides its services to manufacturing businesses and through retail chains, dealers, and direct sales force.

On October 22nd, PLUG announced the expansion of its GenDrive product with three new fuel solutions for the European market. This product development will support its growing European customer base.

PLUG recently announced a Memorandum of Understanding (MoU) with Linde for demonstrating Plug Power’s ProGen Fuel Cell engine in class 6 and class 8 vehicles, which are expected to hit the market by early 2021.

The company entered into strategic partnerships with Brookfield Energy and Apex Clean Energy to source renewable electricity and build liquid green hydrogen plants. These collaborations will help PLUG achieve its long-term sustainable energy goal.

PLUG’s revenue increased 79.9% year-over-year to $106.99 million in the third quarter ended September 2020. Gross billings rose 73.4% sequentially to $125.60 million.

The consensus EPS estimate for the current year indicates a 13.9% improvement from the year-ago value. The consensus revenue estimate of $323.98 million for the current year indicates a 36.8% growth from the same period last year. The stock has gained 745.6% year-to-date.

How does PLUG stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

A for Industry Rank

A for Overall POWR Rating.

You can’t ask for better. The stock is also ranked #6 out of 59 stocks in the Industrial – Equipment group.

SunPower Corporation (SPWR)

SPWR offers solar solutions worldwide. The company operates through two segments – SunPower Energy Services and SunPower Technologies. It supplies panels and system components, commercial rooftop and ground-mounted solar power systems directly and through third-party distributors.

On September 22nd, SPWR announced that it had secured financing commitments from Hannon Armstrong Sustainable Infrastructure Capital, Inc. for its residential solar lease and new solar plus storage program. The company expects this new fund to increase its production capacity.

SPWR has recently announced…

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