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If you are looking to gain exposure to alternative sources of energy, this may be an interesting starting point for your own analysis.

To construct this list we began with over 70 stocks with exposure to the clean energy sector. We then focused on those names undervalued by the PEG ratio, i.e. PEG < 1.

Lastly, we found the levered free cash flow for these companies and kept those that had high levels of levered free cash flow as a percentage of market cap. (Note: Levered free cash flow is the free cash flow available to the company after paying interest on outstanding debt. It is a measure of the cash flow that is truly available to the company).



Having this information in mind, which of these companies do you find to be more attractively priced? Full details below.

1. ReneSola Ltd. (NYSE:SOL): Solar Industry. Market cap of $715.64M. PEG at 0.28. TTM levered free cash flow at 169.61M, which represents about 23.7% of the company's market cap. The stock is currently stuck in a downtrend, trading -9.9% below its SMA20, -12.39% below its SMA50, and -17.01% below its SMA200. It's been a rough couple of days for the stock, losing 6.89% over the last week.



2. Power-One Inc. (NASDAQ:PWER)
: Diversified Electronics Industry. Market cap of $833.55M. PEG at 0.34. TTM levered free cash flow at 179.87M, which represents about 21.58% of the company's market cap. This is a risky stock that is significantly more volatile than the overall market (beta = 2.19). The stock is a short squeeze candidate, with a short float at 33.37% (equivalent to 7.07 days of average volume). The stock has lost 2.02% over the last year.



3. GT Solar International, Inc. (SOLR): Solar Industry. Market cap of $1.31B. PEG at 0.69. TTM levered free cash flow at 196.48M, which represents about 15.02% of the company's market cap. The stock has gained 90.36% over the last year.

4. NRG Energy, Inc. (NYSE:NRG): Electric Utilities Industry. Market cap of $5.89B. PEG at 0.58. TTM levered free cash flow at 851.12M, which represents about 14.45% of the company's market cap. Exhibiting strong upside momentum--currently trading 6.94% above its SMA20, 13.35% above its SMA50, and 15.85% above its SMA200. The stock has had a good month, gaining 11.37%.



*Cash flow data sourced from Yahoo! Finance, other relevant data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 4 Undervalued Clean Energy Stocks With Significant Levered Free Cash Flow