Whether you are looking for green energy penny stocks or those dealing with oil and gas, the entire industry is now famous. The Biden Administration has committed to creating a "green energy future"; therefore, it is only natural that alternative power firms will flourish in 2021. Even though this is the desired outcome, infrastructure must be constructed. Traditional fossil fuels and natural gas remain the quickest and most readily available energy sources. Although the longer-term ramifications of the future of oil & gas are yet uncertain, the near-term outlook remains positive.
We have also witnessed the changeover of some of these energy corporations. Numerous companies are beginning to include renewable and alternative energy solutions into their product offerings. Torchlight Energy Resources, Inc. is one of the businesses we have discussed in light of a future purchase ( NASDAQ: TRCH ). Until the end of 2020, it was a conventional oil and gas enterprise.
The firm signed a merger agreement with Metamaterial. A metamaterial is anticipated to hold a 75% ownership stake in the combined firm upon completion of the upcoming merger. In reality, Metamaterial is a clean technology corporation with solar energy technology as opposed to oil and gas. This is the most recent instance of oil and gas businesses advancing this green energy strategy.
Some industry advisors are hopeful regarding the impact of a green emphasis on fossil fuels. Earlier this year, Rystad Energy stated, "Any 'green' aspect of the infrastructure bill would be mostly additive to total short-term oil product demand owing to building activity. With risks primarily restricted to medium-term oil demand based on the extent and performance. Of the projects."
As a result of climate change and global warming, the need for renewable energy sources is increasing dramatically. This comprises renewable energy sources such as solar, wind, hydro (water), and geothermal. These energy sources assist lower emissions of greenhouse gases. In addition, they play an essential role in preventing climate change.
Green energy is the future's fuel source. The market for renewable energy has seen remarkable growth throughout the years, and green energy is still in its infancy. Therefore, early adopters of a movement might realize enormous profits.
The barrier to entry is minimal for penny stocks, and you may invest in several enterprises for as little as a few dollars. In other words, they are ideal for those who cannot afford blue-chip stocks.
However, it is also essential to recognize that penny stocks are more volatile, and their more considerable price fluctuations might result in higher losses or gains. It is crucial to discover the stocks with the highest risk-to-reward ratio.
1. Sunworks (SUNW)
Renewable energy has emerged as a realistic choice for businesses and consumers recently, as solar power has increased steadily. In recent years, the solar power sector has also experienced a tremendous expansion in response to rising consumer and business demand.
Sunworks provides solar power solutions for agricultural, commercial, and industrial applications. To tackle energy issues, it employs photovoltaic (PV) technology to produce power from the sun.
It builds and installs various-sized systems worldwide, including ones that require finance. The scale of projects ranges from 2 kW to several megawatts.
Even though this firm is one of the most inventive on the market, investors have been cautious about investing in it, and the firm has not offered many reasons to invest in it.
Quarter after quarter, it has underperformed market expectations for earnings. Due partly to supply chain issues, Sunworks could not meet its projected earnings per share and revenue. However, if the commercial and industrial divisions improve their profitability, the corporation may dramatically recover.
2. Clearway Energy
Clearway Energy is among the largest owners of renewable energy in the United States. The firm is headquartered in San Francisco and has offices in Carlsbad, California, Scottsdale, Arizona, and Houston, Texas. It has installed more than 4,700 megawatts (MW) of wind and solar power installations. Moreover, its net assets exceed 8,000 MW. This comprises around 2,500 net MW of environmentally friendly, highly efficient natural gas production facilities and a portfolio of district energy systems.
The company offers investors steady and rising dividend income through its varied and primarily contractual business. It has more than 4,7 gigawatts (GW) of wind, solar, and energy storage assets in 25 states and a nationwide development pipeline. Clearway Energy has thereby mitigated over 8 million metric tons of carbon emissions.
3. Camber Energy Inc. (NYSE: CEI)
Camber Energy is a penny stock that has been regularly mentioned recently. Today, shares of CEI stock increased by more than 3.1 percent. Camber Energy is very volatile, with a one-year increase of more than 20 percent. Despite this, several investors are interested in the firm because of its growth potential. So, is it prudent to purchase Camber Energy? Currently, it is challenging to say.
As the firm confronts a possible delisting from the NYSE, many investors are concerned about its probable future. Despite this, the firm owns a patent for a carbon capture method, which it has utilized to enter the renewables sector. Moreover, although it may take some time to see the full effects of this on Camber's business model, there is little question that investors are enjoying its volatility in the interim. Therefore, despite the likelihood that CEI stock will continue to vary, it may be prudent to keep a watch on it this month.
4. Ocean Power Technologies (OPTT)
Ocean Power Technologies is a corporation that generates energy from ocean waves using the PowerBuoy technology platform. This fantastic business converts ocean waves to power and renewable energy.
There are several methods by which wind turbines operate. One aircraft is at sea, and it employs the movement of waves to generate energy and the spar and heavy plate to maintain its stability. Meanwhile, lithium-ion batteries aboard will store energy for later use when wave power is insufficient.
The platform has several applications, but offshore oil drilling is the most popular. It is the most viable alternative because of its inherent applicability for these projects and its scalability. Ocean Power also provides a hybrid solution that combines solar and ocean power. There are several advantages to combining ocean power and solar energy, including generating more energy in a day than with either source alone.
Additionally, there are two other sectors in which the corporation plans to expand. The first is through the sale of client data. Shortly, data will be the new gold, and businesses will do whatever to get it. The firm thinks that its Data-as-a-Service sector, supported by its flagship product Maritime Domain Awareness Software and WAM-V autonomous surface boats, has the potential to become its most significant source of recurring income.
In addition, the area of Electricity-as-a-Service will be favored since many individuals are interested in leasing power. However, keep in mind that this firm is still unprofitable; therefore, you will need to exercise patience with this individual.
5. Energy Fuels Inc.
You may recall Energy Fuels from our past articles on energy penny stocks. Investors have been one of the most-watched uranium companies for months. In addition to Energy Fuels being the largest uranium producer in the United States, the government's desire to secure stocks is a significant factor.
Increasing uranium demand in the United States as part of a national strategic reserve expansion helped put uranium stocks into sharper focus. The U.S. Senate Committee on Environment and Public Works adopted a December measure to boost the nation's uranium stockpile. Since then, nuclear ore output has increased.
In addition to industry drivers, it is essential to observe what is happening within. In the last weeks of January, several Form 4s were submitted, demonstrating leadership acquisitions of firm shares. In addition, early last week, a Schedule 13G revealed a significant increase in institutional interest, and BlackRock, Inc. disclosed a 5.2% position in Energy Fuels.
6. Uranium Energy Corp. (NYSE: UEC)
UEC stock was another penny stock that completed the day well on May 4. At EOD, UEC had increased by more than 4.3%. Even though Uranium Energy is not a penny stock related to fossil fuels, it is now experiencing increased momentum with the broader expansion of the energy industry.
In addition, UEC shares have increased by more than 10 percent during the previous five days. The corporation declared on April 20 that it had acquired an extra 400,000 pounds of uranium stored in the U.S, and this was the most significant development in the company's history.
Recent gains in the energy business have been substantial, but penny stocks in the renewable energy sector are solid. Due to future-proof demand and the willingness to invest in what might be the next significant source of energy generation, this is the case. Given this, will UEC be on your May radar for penny stocks?
7. Ring Energy Inc.
This year, Ring Energy has advanced like conventional oil and gas corporations. In fact, following Friday's after-market activity, shares of REI have increased by as much as 182 percent since the beginning of 2021. The penny stock reached an all-time high of $1.85. This decision comes as interest in energy companies has increased this year. Last year, Ring's price fell from above $3 to lows of $0.43. Recent weeks have witnessed some of the strongest rising momenta in recent months.
In my perspective, one of the most critical aspects is Ring's new emphasis on integrating operations and concentrating on its most important projects. Specifically, the corporation has recently moved its headquarters and shuttered or shrunk some of its operating offices outside the greater Houston region.
Similar to Nexgen, the institutional community has shown interest in Ring. Last Monday, Empery Asset Management disclosed a 9.99% investment in the firm. Despite these cost-cutting attempts, analysts have not been overly optimistic about the stock. The bulk of analyst ratings for the stock is Hold or similar. However, given REI's recent momentum, would it be one of the energy stocks to monitor shortly?
8. Denison Mines (DNN)
Denison Mines is a firm that specializes in mining and storing uranium. After adopting an operational and financial strategy the previous year, the company's year-end results were good.
Coal and natural gas are being employed as electrical sources in developing nations. Although coal is inexpensive and mainly emits carbon dioxide, it is not the cleanest fuel. Natural gas emits far less carbon dioxide than coal, but it is significantly more costly. Nuclear power facilities create limitless energy without emitting carbon dioxide into the atmosphere.
For years, no one wanted to use uranium as an energy source, and this was because uranium is highly radioactive, making it difficult to manipulate. However, there have been significant advancements in nuclear power, and uranium consumption has increased.
Denison's primary objective is to expand output at the Wheeler River Mine by constructing two mines. This year, they have already established milestones for each mine.
However, it is also appropriate to emphasize some issues. It will be several years before the mines are operational and require a substantial investment. In addition, the firm has issued a large amount of equity to support its activities, resulting in a substantial erosion of shareholder value. You will need to exercise patience with this investment.
9. Tantech Holdings Ltd.
Tantech has been a bit of a chameleon amidst all the energy business hysteria. In addition to offering products such as bamboo charcoal, it is also involved in the electric car industry. The business started last week that its subsidiary, Zhejiang Tantech Bamboo Charcoal Co, had been chosen to create worldwide standards. Wangfeng Yan, the chief executive officer of Tantech, stated, "We have observed a continuous growth in the use of bamboo charcoal as several products and novel uses have been created within the environmental and green sectors."
Additionally, the firm only recently introduced its Variety Combination Honeycomb Activated Carbon product. It is an activated carbon capable of reducing smells and contaminants, including formaldehyde and benzene adsorption and industrial gas purification. This product is used for interior air filtration and low-concentration organic waste gas, among other applications.
The company's electric car division comes next. Last year, Tantech announced the debut of a new, totally automated, and driverless street sweeper. Its subsidiary Shangchi Automobile Co., Ltd. Wangfeng Yan, CEO of Tantech, noted, "Our most recent driverless and autonomous street sweeper, the Shangchi SC-100A, was successfully created by our newly founded R&D team on electronic vehicles in Liushi... We are particularly enthusiastic about this concept due to the incorporation of AI/deep learning for route learning and satellite location and sophisticated sensor processing technologies for human and object prediction and avoidance."
10. Nexgen Energy Ltd.
Nexgen Energy is another energy penny stock to keep an eye on. We mentioned this firm last month as its multi-quarter bull trend has been maintained. This month, the NXE stock price reached a high of $3.72, representing an increase of almost 500 percent in less than a year. What has become such a potent impetus for this action? Interestingly, Nexgen is also involved in the manufacture of uranium.
Even though the same broad-spectrum variables drove NXE stock, new reasons have lately come to light. In January, renowned Asian billionaire Li Ka Shing disclosed a 12.2% investment in the firm. Additionally, analysts have been more optimistic about the stock. Last month, Raymond James and Canaccord Genuity increased their price targets to $5. Raymond James currently has an Outperform rating on the company, while Canaccord has a Buy recommendation.
Which Penny Stocks Should You Consider Right Now?
In 2022, investing in penny stocks will be difficult. Furthermore, although there is a great deal of momentum to capitalize on, several unknowns have created a highly anxious investment climate. With so many factors to consider, it might be challenging to formulate a solid investment plan. However, with the proper knowledge, it might be considerably more straightforward than initially believed.
Final Thoughts
The globe is shifting toward renewable energy sources. In addition, as the pressure increases, alternative energy sources will shift the balance away from fossil fuels.
This gives an excellent chance to invest in green energy penny stocks. Energy may be beneficial for your portfolio, but you must constantly be mindful of the associated dangers. Remember that your research can make all the difference in this situation.
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