My Top 5 Performing Green Energy Stocks

Nov. 10, 2020 12:39 AM ET, , , , 67 Comments
Solar Investing
1.68K Followers

Summary

  • Falling costs have made solar and wind generated electricity the cheapest source for new energy. Not surprisingly, equities are soaring.
  • Here are my 5 top performing green energy stocks.
  • Company highlights and observations.
  • Financial metrics and overvaluation thoughts.
  • The future is green and president-elect Joe Biden will only make it greener.

A couple months ago I noticed that the 5 top holdings in my portfolio were all in the green energy sector - perhaps something you might expect from someone whose pseudonym is "Solar Investing." However, I initially invested only small to moderate amounts in each of these companies - it was the huge appreciation that propelled them to the top 5.

The companies are SolarEdge (SEDG), Tesla (TSLA), Enphase (ENPH), BYD Company (OTCPK:BYDDY), and JinkoSolar (JKS). As I wrote this, a day Joe Biden was on the cusp of winning the presidency, the solar companies, SEDG, ENPH, and JKS were up an amazing 12-26% on the day. EV makers TSLA and BYDDY are up a more modest 2-3%. No, it was not a 1-day aberration, all 5 were up strongly for the year before the U.S. election.

Photo: Author

Wind and solar lead the way in the booming non-hydroelectric renewable energy sector

The EIA predicts that, despite COVID-19, utility-scale solar will soar in 2020 even as coal's decline accelerates. The trend is even more pronounced when one considers that distributed (roof top) solar is also booming. With wind and solar costs continuing to decline, the trend will likely only accelerate.

The market sees this. In the 3-year chart below you can see how clean energy equities have strongly outperformed both the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ). I have not put fossil fuel equities in the chart as their decline is absolutely abysmal over the last 3 years.

Why is clean energy, especially wind and solar electricity generation, growing so quickly? There are two main reasons:

First, as noted above, wind and solar are now the cheapest way to generate electricity in most of the world. This is why you see utilities building solar and wind

This article was written by

1.68K Followers
I am retired and have been in the market since the late 1970s. I currently have a diversified portfolio of technology, REIT, renewable, and precious metal equities.I am especially interested in the renewables sector, primarily solar. I have solar panels on my house and own a Tesla Model 3,The dark clouds of climate change are on the horizon and for our children and grandchildren's sake, we need to move away from fossil fuels, and soon. There are many opportunities for investors to profit here but sorting them out is tricky so let's explore this together.

Analyst’s Disclosure:I am/we are long SEDG, ENPH, TSLA, BYDDY, JKS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Related Stocks

SymbolLast Price% Chg
BYDDY--
BYD Company Limited
ENPH--
Enphase Energy, Inc.
JKS--
JinkoSolar Holding Co., Ltd.
SEDG--
SolarEdge Technologies, Inc.
TSLA--
Tesla, Inc.

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