5 Wind Energy Stocks to Get Ahead of the Renewable Energy Movement
The top wind energy stocks are setting up nicely this year as investors look forward to the future of renewable energy. In fact, renewable energy is becoming the fastest-growing source of energy globally as several countries offer incentives to switch to cleaner alternatives, and it’s becoming more cost-effective to install the equipment.
With some of the most influential countries like the U.S., China, and the U.K. all agreeing to cut emissions significantly in the next several years, it’s creating an ample opportunity for investors to take advantage of the generational growth potential.
Wind power is currently the second fastest-growing renewable energy source, producing 24% of the world’s clean energy. But, according to a report from the Global Wind Energy Council, the world will need to triple its output of wind turbine installations to meet the current climate targets.
What companies are going to benefit from the accelerated production? Let’s take a closer look at the wind energy stocks set to benefit.
Why Wind is Worth the Investment
The wind energy industry is still relatively young when compared to other energy industries. In the United States alone, the total amount of energy generated from wind has gone from 6 billion kWh in 2000 to over 338 billion kWh in 2020, increasing over 5,500%.
You can see how the top wind stocks have performed by looking at the First Trust Global Wind Energy ETF (NYSE: FAN). The ETF holds some of the best wind energy stocks in the world. It is up over 100% since the ETF bottomed out at a little over $10 a share in March 2020, and is currently sitting just over $22 per share.
U.S President Biden’s commitment to the wind power industry is also good news for investors. The president has emphasized his intentions of strengthening the sector through funding and an expansion of job opportunities.
If you are looking to get involved, here are a few of the best wind power stocks to grab your share of the rapidly growing clean energy movement.
#5 Wind Energy Stock – Vestas Wind Systems (OTCMKTS: VWDRY)
- Market cap: 40.7B
- EPS: .37
- Revenue (2020): $18.1B
Vestas Wind Systems, the Denmark-based wind turbine provider, has installed more wind power than any of its competitors.
Also, the company is well-positioned to capture a good chunk of the wind power market. With wind turbines installed in 85 different countries and over 740 GW of wind capacity across the globe, new deals are being signed consistently.
2020 was a strong year as Vestas Wind Systems closed out the year with $17.5 billion in revenue. This represents a record high delivery total, and an all-time high order backlog. Despite the growth last year, the company revised its revenue projections for 2021 slightly lower than expected.
#4 Wind Energy Stock – Siemens AG (OTCMKTS: SIEGY)
- Market cap: 132.1B
- EPS: 4.89
- Revenue (2020): $67B
Siemens AG is a German-based technology giant who’s services include several innovative solutions. These span industries such as healthcare, real estate, finance, and technology.
The conglomerate is a revenue-generating machine operating in all the major economies. The latest Q3 earnings from the company show it’s firing on all cylinders, with orders increasing 47% to over $24 billion. Revenue grew 24% to nearly $19 billion for the quarter.
The growth is attributable to several different aspects of the business, showing a solid business portfolio. After a strong start to 2021, the company is now raising its guidance for the year, expecting strong demand to continue.
#3 Wind Energy Stock – NextEra Energy (NYSE: NEE)
- Market cap: 164.5B
- EPS: 1.60
- Revenue (2020): $18B
NextEra Energy is another wind stock that has a lot more to offer for investors. The company boasts an energy portfolio consisting of wind and solar, natural gas, and more. NextEra has established itself as a leading clean energy provider in the U.S. Through its largest branch – Florida Power & Light Company, the company serves over 11 million residents in Florida.
The company stays competitive in the clean energy industry through its subsidiary NextEra Energy Resources. The subsidiary is the world’s largest renewable energy generator (wind & solar). Also, NextEra Energy Resources maintains a substantial share of the battery storage market.
With two profitable units in clean energy and other forms of energy, the company sustains a competitive revenue stream. Investors can also get excited about earning a nice dividend yield, which is currently around 1.80%.
#2 Wind Energy Stock – General Electric (NYSE: GE)
- Market cap: 116.7B
- EPS: (-2.59)
- Revenue (2020): $79.6B
General Electric may not be the first company that comes to mind when you think of wind energy stocks. But, believe it or not, GE is also one of the leading wind turbine providers. With nearly 50,000 wind turbines installed and operating so far, GE is a solid option for investors looking to dip their feet into the world of renewable energy.
Meanwhile, organic orders have been the story for the wind power unit at GE, growing 30% year over year. GE’s renewable energy segment revenue grew 16% from the previous year to $4 billion in the second quarter.
In May, GE Renewable Energy announced it had finalized a contract for the final phase of the Dogger Bank Offshore Wind Farm. The contract is for 87 units of the Haliade-X 14 MW, an upgraded version of GE’s other wind turbine.
#1 Wind Energy Stock – Brookfield Renewable Partners (NYSE: BEP)
- Market cap: 11.1B
- EPS: (-0.88)
- Revenue (2020): $3.8B
If you are looking for the best solar and wind stocks, Brookfield Renewable Partners is worth taking a look at. With a diverse product selection in renewable energy sources such as wind, solar, hydro, and distributed energy generation, Brookfield is uniquely positioned to take advantage of the clean energy movement.
The renewable energy company is capable of generating over 20,000 MW of energy through its various energy sources. Although hydroelectric power is Brookfield’s largest energy source, the company just announced in June it will be reopening the Shepherds Flat wind project. The reopening aims to increase energy production by 25%.
Is It the Right Time to Invest in Wind?
Renewable energy sources are growing at an unprecedented rate. For instance, renewable energy usage in the U.S has already outpaced that of coal in the last few years. And that growth should certainly continue. These wind energy stocks are set to profit from the global transition to cleaner, more sustainable energy sources.
The First Trust Global Wind Energy ETF has dropped around 15% from February highs this year. With these energy companies continuing to see increasing demand for wind power, investors should continue to reap the benefits.
Finally, to get exclusive insights into wind energy stocks, renewables and more, check out our free Profit Trends newsletter! This e-letter delivers in-depth coverage of the latest trends and breakthroughs from industry experts David Fessler and Mathew Carr. Sign up today!
About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.