Green energy solutions are experiencing rapid growth driven by consumer interest and government initiatives. Against this backdrop, strong fundamentals in green energy stocks Canadian Solar (CSIQ), Westlake Chemical Partners (WLKP) and Genie Energy (GNE) should make them a smart addition to the portfolio. Read more….
Among the growing concerns about climate change, several countries have taken steps to move towards a clean energy future. Strong demand and a record number of clean energy incentives in the Inflation Reduction Act (IRA) are expected to accelerate the growth of green energy.
Against this backdrop, let’s look at some clean energy stocks, Canadian Solar Corporation (CSIQ), Westlake Chemical Partners L.P. (VLKP) and Genie Energy Ltd. (GNE), which can save investors’ trading track record for the reasons mentioned in the article.
The Biden administration plans to phase out fossil fuels as a form of energy production in the United States by 2035. The White House has set a target of 80%. renewable energy production by 2030 and 100% carbon-free electricity in five years.
Renewable energy sources have become cost-competitive with major fossil fuels and in many cases cost-effective. What’s more, with massive incentives and subsidy packages, the government is further sweetening the deal by cutting costs. America’s Renewable Energy received green signal with the Inflation Reduction Act What $369 billion granted for green energy.
After the IRA, forecasts for the development of solar energy are much higher. The EIA report states: “In all cases, compared to 2022, solar generation capacity will grow by about 325% to 1019% by 2050, and wind generation capacity will grow by about 138% to 235%. We see an increase in installed battery capacity in all cases up to support this growth of renewable energy“.
By 2027, the global renewable energy market is projected to reach $1.15 trillion. CAGR 9.1% in the period from 2021 to 2027.
Against this backdrop, fundamentally strong shares of green energy companies CSIQ, WLKP and GNE could be good buys now.
Canadian Solar Corporation (CSIQ)
Based in West Guelph, Canada, CSIQ designs, develops, manufactures and markets solar ingots, wafers, cells, modules and other solar energy products. The company operates in two segments: Modular and System Solutions (MSS); and energy.
CSIQ recently announced plans for CSI Solar Co., Ltd. to expand capacity until 2024. He intends to add 30 GW of ingots, 15 GW of wafers, 10 GW of cells and 25 GW of modules. According to Dr. Sean Koo, Chairman and CEO of CSIQ, The additions will be linked to the latest N-type technology, which will enable the company to better meet high market demand and accelerate growth.
he added“BBy increasing the level of vertical integration, we continue to improve control over technology, raw material sources and costs. These business plans will help us further strengthen our long-term leadership position not only in our end markets, but throughout our entire supply chain.”
In terms of ROCE over the last 12 months, the CSIQ of 12.82% is 383.7% higher than the industry average of 2.65%. Likewise, its ROTA and ROTC over the past 12 months of 2.66% and 4.75% are 295.5% and 130.5% higher than the industry average of 0.67% and 2.06 % respectively).
In the fiscal fourth quarter ending December 31, 2022, CSIQ posted net revenue of $1.97 billion, up 29% year-over-year. Its gross profit increased by 15.7% year-over-year to $348.63 million. In addition, his operating income for the same quarter increased by 101.4% compared to the quarter last year to 135.76 million dollars.
For the fiscal fourth quarter ended December 31, 2022, net income attributable to CSIQ and earnings per share were $77.83 million and $1.11, up 199.8% and 184.6% year-on-year. period last year, respectively.
Analysts expect CSIQ’s EPS to rise 16% year-on-year to $1.24 in the second fiscal quarter ending June 2023. The company’s revenue for the same quarter is expected to increase slightly from last year to $2.32 billion. The company has beaten the EPS consensus in each of the past four quarters, which is impressive.
Shares are up 14% over the past year and 22.3% over the past six months, ending the latest trading session at $38.85.
CSIQ Power Ratings reflect its promising prospects. It has an overall rating of B, representing a purchase in our own rating system. POWR ratings evaluate stocks on 118 different factors, each of which has its own weight.
The CSIQ is rated A for value and B for growth. Ranked first among 17 stocks in Solar industry.
In addition to what we mentioned above, you can also see additional POWR ratings for CSIQ (momentum, stability, sentiment and quality) Here.
Westlake Chemical Partners LP (VLKP)
WKLP acquires, develops and operates ethylene plants and related assets in the United States. The company’s ethylene production facility primarily converts ethane into ethylene. It sells ethylene by-products, including propylene, crude butadiene, pyrolysis gasoline and hydrogen, directly to third parties on a spot or contract basis.
On February 16, WLKP paid a quarterly dividend of $0.4714 per unit, marking the 34th consecutive quarterly distribution to its shareholders. Its $1.89 annual dividend yields 8.73% at prevailing prices. The company’s dividend payouts are up 4.9% CAGR over the past five years.
WLKP’s last 12-month EBIT and EBITDA margins of 21.82% and 29.42% are 73.2% and 54.7% higher than the industry average of 12.60% and 19.03%, respectively ). Similarly, the last 12-month FCF margin of 20.05% is 333.4% higher than the industry average of 4.63%.
During the fiscal fourth quarter ended December 31, 2022, WLKP’s total net sales increased 11% year-over-year to $366.84 million. Net income attributable to WLKP partners and net income per limited partner attributable to WLKP partners were $16.78 million and $0.48 million, respectively, for the same quarter.
Its total liabilities were $468.27 million for the period ended December 31, 2022, compared to $508 million for the same period last year.
Analysts expect WLKP’s revenue to rise 1.6% year on year to $1.62 billion for the fiscal year ending December 2023. Earnings per share for the same year is expected to be $1.81. The company has beaten consensus revenue estimates in three of the last four quarters, which is impressive.
Shares are up 1.3% over the past five days to close the last trading session at $21.50.
The strong WLKP fundamentals are reflected in the PoWR rankings. The company has an overall rating of A, which corresponds to a strong buy in our proprietary rating system.
The stock is also rated A for quality and B for value, stability and mood. It ranks first in 9 B-rated stocks. MLP – Other industry.
Click here to see additional growth and momentum POWR ratings for WLKP.
Gini Energy Ltd. (GNE)
GNE and its subsidiaries supply electricity and natural gas to households and small businesses around the world. It consists of three operating segments: Genie Retail Energy (GRE); GRE International; and Genie Renewables.
On On March 27, Genie Renewables announced it had acquired the rights to a solar farm site in upstate New York. Once completed and commissioned, the proposed project is expected to have a total generating capacity of approximately 6.25 megawatts (MW).
Genie Renewables also announced that it has received a positive CESIR (Coordinated Electrical Interconnection Review) and interconnection cost estimate from Con-Ed for its proposed 3MW solar power project in Lower New York State. The company expects to be notified to continue and start construction in the coming months, subject to land lease negotiations and local permits.
The company paid a dividend of $0.075 per share on March 1, 2023. Its current annual dividend of $0.30 yields 1.93% at prevailing prices. The average GNE dividend yield over four years is 2.90%.
The past 12-month EBIT GNE margin of 25.30% is 40.7% higher than the industry average of 17.98%. Similarly, the last 12-month net income margin of 27.83% is 158.8% higher than the industry average of 10.75%.
In the fiscal fourth quarter (ended December 31, 2022), GNE’s total revenue increased 17.6% year-over-year to $81.40 million. The company’s operating income increased by 167.2% year-on-year to $15.50 million, and its adjusted EBITDA increased by 153.4% compared to last year to $18.50 million.
In addition, its net income attributable to GNE common stockholders was $16.20 million and earnings per share attributable to GNE common stockholders was $0.61 for the fiscal fourth quarter ended December 31, 2022.
Shares are up 137.2% over the past year and 65.3% over the past six months, ending the last trading session at $15.80.
The solid perspective of GNE is reflected in its Power Ratings. The stock has an overall rating of B, which means “buy” in our proprietary rating system.
It is rated B for value and momentum. Within Utilities – household industry, it ranks second out of 64 stocks.
To see the GNE rankings for growth, stability, sentiment, and quality, Click here.
What to do next?
Get your hands on this special report:
7 EXTREMELY undervalued stocks
The best part of the recent bear market is that there are booming companies trading at huge discounts to fair value.
This combination of brilliant earnings growth and low price provides an excellent catalyst for investor success.
And this report focuses on the top 7 of these stocks that will rise in the coming weeks. Click below to get your copy now.
7 EXTREMELY undervalued stocks
CSIQ shares were unchanged in premarket trading on Wednesday. Since the beginning of the year, the CSIQ is up 25.73% compared to the 7.54% gain in the benchmark S&P 500 over the same period.
About the author: Shristi Suman Jayaswal
The dynamics of the stock market sparked Shristi’s interest during her school days, which led her to become a financial journalist. Investing in undervalued stocks with solid long-term growth prospects is her preferred strategy. With a master’s degree in accounting and finance, Sristi hopes to deepen her experience in investment research and better guide investors.
Fast 3 clean energy stocks to help keep your trading track record appeared first on stocknews.com