5 Alternative Energy Stocks to Buy Amid Solid Industry Rally

The Surge in Investment in Alternative Energy

The increasing focus on finding clean energy sources and diminishing global reliance on fossil fuels has resulted in a surge in investment in alternative energy. Escalating climate challenges have made investments in clean energy a top priority.

Per the International Energy Agency’s (IEA) latest World Energy Investment report published in June 2024, global spending on clean energy technologies and infrastructure is likely to reach $2 trillion in 2024. This includes renewables, electric vehicles, nuclear power, low-emission fuels, and efficiency improvements. The surge in the allocation to clean energy sources is indicative of the momentum behind global economies increasing their attention toward achieving net zero carbon emissions.

Wind Energy Progress in the United States

Among alternative energy sources, wind energy has been making noticeable progress in the United States. Per a report by EIA, wind turbines were the source of about 10.2% of total U.S. utility-scale electricity generation in 2023. Looking ahead, per EIA’s latest Short-Term Energy Outlook published in June 2024, wind generation in the United States is projected to increase 5% in 2024, while wind energy’s share in total electricity generation is anticipated to reach 11% by 2024-end.

The Role of Electric Vehicles (EVs)

Moreover, electric vehicles (EVs) play a critical role in decarbonizing the transportation sector. Per Statista, the U.S. EV market size is expected to register a compound annual growth rate (CAGR) of 18.2% between 2024 and 2028. Such an impressive outlook bolsters the prospects of clean energy stocks, which offer the largest electric vehicle charging network in the United States.

Industry Outlook

The Zacks-defined Oils-Energy – Alternative Energy Industry is currently in the top 20% of the Zacks Industry Rank. In the past year, the industry has provided 30.1% returns, while its year-to-date return is 29.5%. Since it is ranked in the top half of Zacks Ranked Industries, we expect the consulting services industry to outperform the market over the next three to six months.

Our Top Picks

We have narrowed our search to five alternative energy stocks that have strong growth potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy).

1. Constellation Energy Corp. (CEG): CEG generates and markets electricity. CEG’s operating segment consists of the Mid-Atlantic, Midwest, New York, ERCOT and Other Power Regions. CEG sells natural gas, renewable energy and other energy-related products and services. CEG serves distribution utilities, municipalities, cooperatives, and commercial, industrial, governmental, and residential customers.
2. NextEra Energy Partners LP (NEP): NEP has completed several financing agreements to secure funds for acquisitions and improve financial flexibility. The passage of the Inflation Reduction Act and the use of new technology are helping NEP develop renewable projects.
3. Texas Pacific Land Corp. (TPL): TPL is engaged in land and resource management, and water services and operations businesses. TPL’s Land and Resource Management segment manages approximately 650,000 acres of land in the State of Texas. TPL also generates revenues from pipeline, power line and utility easements, commercial leases, material sales, and seismic and temporary permits related to land uses including midstream infrastructure projects and hydrocarbon processing facilities.
4. Crescent Energy Co. (CRGY): CRGY is an independent oil and natural gas company that acquires, explores, develops, exploits, and produces crude oil and natural gas properties principally in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana, and Wyoming in the United States.
5. Cheniere Energy Partners L.P. (CQP): CQP is the owner and operator of regasification units at the Sabine Pass LNG terminal, located in Cameron Parish, LA. CQP provides clean, secure, and affordable LNG to several entities, comprising utilities as well as integrated energy firms, all across the world. CQP’s Sabine Pass LNG terminal is North America’s first large-scale liquefied gas export facility.

Stock Performance

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Note: The complete list of today’s Zacks #1 Rank stocks can be found here.

For more information on the individual stocks, you can read the free stock analysis reports:

• Constellation Energy Corporation (CEG) : Free Stock Analysis Report
• Cheniere Energy Partners, L.P. (CQP) : Free Stock Analysis Report
• NextEra Energy Partners, LP (NEP) : Free Stock Analysis Report
• Texas Pacific Land Corporation (TPL) : Free Stock Analysis Report
• Crescent Energy Company (CRGY) : Free Stock Analysis Report

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Source: Zacks Investment Research

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 13: Climate Action

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7.2: Increase substantially the share of renewable energy in the global energy mix.
• SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.
• SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Investment in clean energy technologies and infrastructure ($2 trillion in 2024) can be an indicator of progress towards increasing the share of renewable energy (SDG 7.2).
• The increase in wind generation in the United States (5% in 2024) and its share in total electricity generation (11% by 2024-end) can be indicators of progress towards increasing the share of renewable energy (SDG 7.2).
• The surge in investment in alternative energy and clean energy stocks can be indicators of progress towards upgrading infrastructure and retrofitting industries to make them sustainable (SDG 9.4).
• The focus on achieving net zero carbon emissions and decarbonizing the transportation sector through electric vehicles can be indicators of progress towards integrating climate change measures into national policies, strategies, and planning (SDG 13.2).

SDGs, Targets, and Indicators Table

Source: finance.yahoo.com