10 Clean Energy Stocks Undervalued By EPS Trends

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 |  Includes: AMAT, ECOL, FMC, FTEK, IXYS, NRG, SUG, SWX, UIL, WTR
by: Kapitall

Do you think sources of clean energy will only grow in dominance as oil prices become more of a concern? For ideas on how to analyze companies of the clean energy industry, we ran a screen.

We began by compiling a list of companies that use or produce sources of clean energy, and then we searched for those that appear undervalued relative to their EPS trends.

Based on the theoretical assumption that P/E is equal to a constant k, it follows that increases in EPS should be matched by proportionate increases in price. When they don't match up, a mispricing may have occurred. That is, when earnings rise faster than price, the stock may be undervalued.

We screened the clean energy industry for stocks exhibiting this trend, seeing higher growth in EPS than price over the last 30 days.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks are undervalued? Use this list as a starting point for your own analysis.

1. Applied Materials Inc. (NASDAQ:AMAT): Provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic, and related industries worldwide. The EPS estimate for the company's current year increased from 0.93 to 0.96 over the last 30 days, an increase of 3.23%. This increase came during a time when the stock price changed by 0% (from 12.71 to 12.71 over the last 30 days).

2. US Ecology, Inc. (NASDAQ:ECOL): Provides waste treatment, disposal, recycling, and transportation services to commercial and government entities in the United States. The EPS estimate for the company's current year increased from 1.05 to 1.1 over the last 30 days, an increase of 4.76%. This increase came during a time when the stock price changed by 2.49% (from 19.71 to 20.2 over the last 30 days).

3. FMC Corp. (NYSE:FMC): Provides solutions, applications, and products for agricultural, consumer, and industrial markets. The EPS estimate for the company's current year increased from 6.84 to 6.92 over the last 30 days, an increase of 1.17%. This increase came during a time when the stock price changed by 0.7% (from 98.51 to 99.2 over the last 30 days).

4. Fuel-Tech, Inc. (NASDAQ:FTEK): Uses a suite of advanced technologies to provide boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. The EPS estimate for the company's current year increased from 0.29 to 0.31 over the last 30 days, an increase of 6.9%. This increase came during a time when the stock price changed by -8.45% (from 6.39 to 5.85 over the last 30 days).

5. IXYS Corp. (NASDAQ:IXYS): Engages in the development, manufacture, and marketing of power semiconductors, advanced mixed signal integrated circuits, application specific integrated circuits, and systems and radio frequency semiconductors. The EPS estimate for the company's current year increased from 1.01 to 1.03 over the last 30 days, an increase of 1.98%. This increase came during a time when the stock price changed by -4.3% (from 12.79 to 12.24 over the last 30 days).

6. NRG Energy, Inc. (NYSE:NRG): Operates as a wholesale power generation company. The EPS estimate for the company's current year increased from 0.78 to 0.82 over the last 30 days, an increase of 5.13%. This increase came during a time when the stock price changed by -7.26% (from 17.77 to 16.48 over the last 30 days).

7. Southern Union Co. (NYSE:SUG): Engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States. The EPS estimate for the company's current year increased from 2.02 to 2.03 over the last 30 days, an increase of 0.5%. This increase came during a time when the stock price changed by -0.66% (from 43.87 to 43.58 over the last 30 days).

8. Southwest Gas Corporation (NYSE:SWX): Engages in the purchase, distribution, and transportation of natural gas in Arizona, Nevada, and California. The EPS estimate for the company's current year increased from 2.57 to 2.65 over the last 30 days, an increase of 3.11%. This increase came during a time when the stock price changed by 0.19% (from 42.52 to 42.6 over the last 30 days).

9. UIL Holdings Corporation (NYSE:UIL): Operates in the energy sector in the United States. The EPS estimate for the company's current year increased from 2.19 to 2.2 over the last 30 days, an increase of 0.46%. This increase came during a time when the stock price changed by -2.53% (from 35.58 to 34.68 over the last 30 days).

10. Aqua America Inc. (NYSE:WTR): Operates regulated utilities that provide water or wastewater services in the United States. The EPS estimate for the company's current year increased from 1.08 to 1.09 over the last 30 days, an increase of 0.93%. This increase came during a time when the stock price changed by -0.86% (from 22.13 to 21.94 over the last 30 days).

*EPS data sourced from Yahoo! Finance, all other 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.