Investors interested in green energy penny stocks often match a specific profile. In other words, they are likely to have a high-risk tolerance, which is essential for these investments.
Due to penny stocks' higher volatility, they are more appealing than more established, more expensive companies. They might be pretty appealing if they offer significant benefits that are not expected. However, this is balanced by actual downsides. As a result of the higher risks, investors should exercise extra caution in this region. As the adage goes, only risk what you can afford to lose.
Still, investors in penny stocks want immediate gains, whereas investors in renewable energy desire growth from prioritizing low carbon emissions. A critical mass of renewable energy is becoming increasingly apparent as ideas like carbon pricing gain ground and the Oil Majors begin to change their decades-long strategic objectives. Thus, joining the trends driving the more significant energy industry is a perfect moment.
Green Energy Penny Stocks: A Quick Look
There were not previously so many green penny stocks in the market. The 1970s witnessed the beginning of the energy market's deregulation. Until then, petroleum was the primary energy source, both in terms of use and production.
The energy market is consistently among the most affected during economic crises or pandemics. The first significant threat to the Seven Sisters oligarchy, the 1973 oil crisis, ushered in the formation of OPEC. As numerous parts of the globe developed to realize the advantages of energy localization, worldwide authorities began to demolish and avoid oligopolies purposefully. Energy consumption and import regulations have been reevaluated by several countries in the wake of the 2008 financial crisis, placing pressure on petroleum exporters to get fair treatment.
The COVID-19 pandemic is still causing havoc with the consolidation of the energy sector. Newer, less expensive types of energy are becoming more viable, weakening the power of formerly dominating businesses such as ExxonMobil and BP.
Renewable energy sources have expanded their contribution to the growth of the world's power capacity in recent years. According to the International Energy Agency, by 2022, this ratio will rise to 90%. (IEA). This growth will be fueled by renewable energy sources like solar and wind. The IEA projects that solar PV development would reach 162 GW in 2022, an increase of fifty percent compared to pre-pandemic levels. Global wind capacity increase is predicted to surpass solar expansion. In 2022, biofuel and uranium production are also predicted to expand.
Due to climate change and climate change, the demand for renewable energy sources is rapidly increasing. This encompasses renewable energy sources such as solar, wind, hydro (water), and geothermal. These energy sources aids minimize emissions of greenhouse gases. In addition, they play a critical role in slowing down the rate of global warming.
The fuel of the future will be derived from renewable sources like wind and solar power. The market for renewable energy has shown tremendous expansion throughout the years, and green energy is still in its infancy. Therefore, early adopters of a movement can perhaps gain tremendous profits.
Penny stocks have a low entry hurdle, and you may put your money to work in several different businesses for a few bucks. In other words, they are great for folks who cannot purchase blue-chip stocks.
On the other hand, Penny stocks are more volatile, which must be kept in mind, and they may suffer more losses or gains due to their greater price volatility. It is vital to locate the stocks with the highest risk-to-reward ratio.
Considering this, penny stocks in the renewable energy industry continue to appear extremely promising, providing you undertake proper research. Therefore, we have produced a list of the leading green energy corporations of 2022, and let us take a closer look at each one.
1. Sunworks (SUNW)
Solar power has gradually expanded in recent years, making renewable energy a viable option for businesses and people. In recent years, the solar power sector has also increased enormously in response to growing consumer and commercial demand.
Specializing in solar electricity for agricultural, commercial, and industrial uses, Sunworks is a trusted name in the industry. To overcome energy challenges, it utilizes photovoltaic (PV) technology to create power from the sun.
It creates and deploys systems of different sizes worldwide, including some that require monetary support. From 2 kW to several megawatts, the scope of the projects varies.
Even though this firm is one of the most inventive, investors have been reluctant to invest in it, and this is because the firm has not presented many investment opportunities.
The company's earnings have consistently fallen short of market forecasts each quarter. Sunworks was unable to fulfill its profits per share and revenue targets partly because of supply chain difficulties. Although the commercial and industrial divisions are struggling, there is a chance that the company can rebound significantly.
2. Natura & Co. Holding SA (NTCO)
According to Cort, this Brazilian cosmetics juggernaut has also joined the B Corp movement, ensuring investors that Natura performs what it teaches on sustainability. He believes that the company also provides investors exposure to emerging markets, and emerging markets may have higher upside potential than established ones but may also involve greater risk. Natura also extends its sustainability ideas to other organizations: "We collaborate directly with over 30 local communities in the Amazon area, including more than 300 families, to support them in building sustainable economic models that benefit the forest," the corporation notes.
3. Ocean Power Technologies (OPTT)
Ocean Power Technologies is a firm that creates electricity from ocean waves utilizing the PowerBuoy technology platform. This incredible firm turns ocean waves into sustainable power.
There is the various manner in which wind turbines work. One aircraft is at sea, generating energy from the waves' motion and keeping itself stable with the help of a spar and a hefty plate. Batteries on board will store energy in the meanwhile, in case wave power fails.
Offshore oil drilling is the most common use for the platform, and it is the most viable solution, thanks to its inherent relevance for these tasks and scalability. Ocean Electricity also delivers a hybrid system that blends solar and ocean power. There are various advantages to combining ocean power and solar energy, including the possibility of creating more energy in a day than with each source alone.
Additionally, there are two other industries in which the firm wants to develop. The first way is through selling customer data. As data becomes increasingly valuable shortly, companies will do whatever to secure it. The business claims that its Data-as-a-Service sector, supported by its new flagship Maritime Domain Awareness Software and WAM-V autonomous uncrewed boats, has the potential to become its most significant source of recurring income.
Many people are interested in leasing power, which will make the sector of "Electricity as a Service" more popular. Remember, though, that this company is still losing money. Therefore, you will need to practice patience with this guy.
4. Enphase Energy
Residential solar energy systems are available from Enphase Energy. Homeowners may use microinverters provided by the firm to convert solar energy for their use. Enphase Energy then offers home monitoring and control services utilizing the company's unique technology. Enphase Energy also provides AC battery storage for excess solar energy.
This focus on solar bodes well for the future of ENPH. According to Fortune Business Insights, the solar business is predicted to rise at a CAGR of 6.9 percent over the next six years. This is expected to boost the industry's current value from $184.0 billion to $293.1 billion by 2028.
Needham's Vikram Bagri (Buy) estimates that Enphase Energy's potential income per home may rise from $9,000 to $12,000 in just a few short years. Moreover, that Enphase Energy has already deployed its microinverters in more than 1.7 million houses, ENPH's revenues may undoubtedly top $5 billion by 2024.
Bagri adds, "Faster revenue growth would arise from stronger-than-anticipated growth in the U.S. residential solar market and more rapid market share gains."
Analysts believe ENPH is one of the most impressive publicly-traded green energy firms. On Koyfin, six of the twenty-seven participants rate it as "strongly buy," eleven of them say "buy," and then say "hold." This is sufficient for Koyfin to offer an overall Buy rating to shares. The specialists questioned by Koyfin estimate recovery of 46,2 percent within the following 12 months.
5. Denison Mines (NYSE: DNN)
Due to the energy crisis created by the Russian-Ukrainian war, nuclear power stocks and uranium miners have recently been in focus. The latter group includes uranium mining and storage company, Denison Mines. The groundwork has been laid for further growth in light of the previous year's strong operational and financial results.
Denison's Wheeler River project is critically important. A commercial pattern of five wells was constructed after the company completed a test program. Denison has established aggressive ambitions for 2022, including completion targets for Wheeler River due to a rising uranium market. This document provides an overview of current exploration activities around the country. Denison acquired a half-interest in JCU Exploration last summer, as you may recall. The company has acquired dozens of uranium ventures in Canada thus far.
6. Solar Integrated Roofing (SIRC)
Solar Integrated Roofing is a stock with a low price of considerably more than $1, and it has been here since the middle of March. In addition, it trades on the volatile over-the-counter market, like many other penny stocks on this list.
As a result, this solar panel roofing installation company is now potentially worth investing in. The business just recorded unaudited preliminary record revenues of $25 million for the three months ending on August 31. CEO David Massey thinks that the company's growth will continue and may triple.
Assuming this company stays on course and eventually goes public, SIRC's stock is anticipated to grow significantly. A Nasdaq listing is an appraisal, which would signify substantially better business vigor.
7. Broadwind (BWEN)
Broadwind, the following stock on our list, appears to be the most stable and trustworthy. The company's Nasdaq listing strengthens this argument. Like Solar Integrated Roofing and its possible inclusion, being listed on an exchange helps penny stocks establish their worth. Furthermore, the BWEN stock price is now hanging around $3. Generally, a stock's volatility diminishes as its price rises.
A total of four buy ratings and one hold are presently awarded to Broadwind by analysts. The average price estimate for the stock among these four analysts is $7.67. To put that into perspective, the upside potential here is 161% over the market closing price on September 21.
Broadwind is a maker of heavy components for several energy industries, comprising both renewable and nonrenewable energy sources. Its renewable energy emphasis is on wind generating, as the name may imply.
According to the business, it was "one of the early American makers of 100-meter wind turbine towers." It is also a manufacturer of solar panels. Keep an eye on BWEN stock for potential gains in the future.
8. NextEra Energy
NextEra Energy (NYSE: NEE, 75.23) has a market valuation of $147.6 billion, making it one of the largest utility businesses in the world. Furthermore, they have addressed renewable energy.
In addition to fossil fuels, the company uses solar, nuclear, and wind energy to power its customers. In reality, NEE has proposed a strategy to alleviate environmental issues while retaining the cost-effectiveness of offshore wind energy for New Jersey.
There would be "significant capital expenditures related to offshore wind transmission demands in New Jersey," according to UBS analysts Daniel Ford and Ross Fowler (Buy). They "expect the entire capital expenditure opportunity to be in the tens of thousands of dollars."
Angus Kelleher-Ferguson, an analyst at Argus, says, "NextEra is a pioneer in renewable investments." "The biggest quarter for renewable beginnings in business history," says Kelleher-Ferguson, referring to the year-over-year gain of around 12 percent in NEE's third-quarter earnings.
There are six Strong Buys among the twenty experts surveyed by Koyfin, eighteen Buys, five Holds, and only one Strong Sell. As a result, Koyfin now rates NEE as a Buy. In addition, analysts questioned the estimate of a 12-month price objective of $93.38. The current share price of NEE is a gain of 24.1 percent.
NEE's approximately 181 million shares hold about $22.1 billion in market value in over 200 different U.S. exchange-traded funds (ETFs). With around 27.7 million shares, the Utilities Select Sector SPDR Fund (XLU) is the largest ETF holder of NEE shares.
9. Clearway Energy
As one of the significant US owners of renewable energy sources, Clearway Energy is a household name. San Francisco is home to the company's headquarters and has offices in Carlsbad, California, Scottsdale, Arizona, and Houston, Texas. Over 4,700 MW of wind and solar power systems have been implemented. Even more impressive is the company's net worth, which stands at more than $8,000,000,000,000. An array of district energy systems and ecologically friendly, high-efficiency natural gas generating plants total around 2,500 net megawatts (MW).
The company gives investors constant and increasing dividend income through its broad and primarily contractual activity. Wind, solar, and energy storage facilities totaling more than 4,7 gigawatts (GW) are spread over 25 states, with other projects in various stages of construction around the country. Over 8 million metric tons of carbon emissions have been avoided because of Clearway Energy.
10. SunHydrogen (HYSR)
Penny stocks are frequently divided into tiers based on their trading price. SunHydrogen is priced at tier 2, between one penny to ninety-nine cents. Currently, it trades for around 5 cents per share, but in early 2021 it was worth 30 cents.
Hydrogen and oxygen extraction from water is the primary business of this company. The process provides hydrogen as an energy source, with oxygen as a harmless byproduct. SunHydrogen's solution is a photoelectrochemical process that harnesses the sun's energy to divide water molecules into the above constituents.
Hybrid solar-hydrogen storage (HYSR) is what it sounds like: a cross between the two. It has not yet been able to market its technology. However, scientists and investors have long believed that the technology's commercialization will be revolutionary. The value of SunHydrogen's HYSR shares might skyrocket if the company is successful in scaling up its solar-powered hydrogen production.
Online Brokers for Green Penny Stocks with the Best Performance
Making money in the energy market is considerably easier when utilizing a user-friendly and reliable trading platform. Possessing a solid investment technique is one thing, but a single lousy input or unlucky period of downtime may render all of your work and plan pointless. While learning how to trade penny stocks, it is always a good idea to test your ideas and execution plan on a virtual account, as execution is crucial in this market. In order to choose which of the mentioned brokers is the most suitable for you, compare their qualities.
Conclusions
Green penny stocks have been a topic of research for us. A startling number of notable names have been absent from our publications. This is not owing to their lousy performance. Because they have grown so much, they are no longer called penny stocks. Whatever the early crop of electric car and solar penny stocks or the alternative energy companies featured last year, the sector is hot. Because green and alternative energy stocks remain a clear catalyst and the next president's agenda, do you plan to include them in your 2022 strategy?
Regardless of your choice, you should always closely check the market. They do get a little reprieve now and again. However, you may want a watch list prepared for when they heat up again, as we have seen lately with some hydrogen cell businesses this week. Other energy brands had gotten all the attention, so they had fallen to the wayside. However, things have warmed up again, which has also helped stimulate interest in the current green energy trend.
Real-time News
