Favorable government policies, the adoption of electric vehicles (EVs), and the declining cost of energy storage technologies are expected to propel the renewable energy industry’s growth. The renewable energy market is expected to reach $2.17 trillion by 2030, representing a 10.1% CAGR .
According to a Deloitte report, concerns over climate change and support for environmental, social, and corporate governance (ESG) policies should drive the renewable energy sector’s growth in 2022. Moreover, President Biden’s support for building a clean energy economy and increasing renewable energy adoption should further fuel the industry’s growth.
Given this backdrop, Wall Street analysts recommend buying renewable energy stocks Equinor ASA (EQNR), TPI Composites, Inc. (TPIC), and Beam Global (BEEM). So, we think it could be worth adding these stocks to one’s watchlist.
Equinor ASA (EQNR)
Headquartered in Stavanger, Norway, EQNR is an energy company that explores, produces, and markets petroleum and petroleum-derived products and other forms of energy. The company operates in five segments: Exploration Norway; Exploration & Production (E&P) International; E&P USA; Marketing, Midstream & Processing; and Other. EQNR also markets and trades in electricity and emission rights, operates refineries, and develops low-carbon solutions for oil and gas.
EQNR’s net operating income for the third quarter, ended September 30, 2021, came in at $9.57 billion, compared to a $2.02 billion net operating loss in the prior-year quarter. The company’s adjusted earnings increased 1,152.7% year-over-year to $9.77 billion. Its net income amounted to $1.41 billion, compared to a $2.12 billion net loss in the third quarter of 2020. Also, the company’s cash and cash equivalents increased 76.1% year-over-year to $13.82 billion.
EQNR’s $86.75 billion consensus revenue for the fiscal period ending December 2021 represents an 89.3% increase year-over-year. Its EPS is expected to grow 948.6% in the current year. The stock has surged 50.6% in price year-to-date.
Among the four Wall Street analysts who have provided a rating for the stock, one rated it ‘Buy’ and two rated it ‘Hold.’ The $34 average analyst price target represents a 37.5% potential upside.
TPI Composites, Inc. (TPIC)
TPIC is an independent composite wind blade manufacturer and provider with a global footprint that is headquartered in Scottsdale, Ariz. The company provides solutions to the transportation sector, OEM customers, and wind farm owners and operators. TPIC operates in the United States, Asia, Mexico, Europe, the Middle East, Africa, and India.
This month, TPIC agreed to issue and sell $400 million of Series A Preferred Stock to investment funds managed by Oaktree Capital Management. TPIC believes that with Oaktree’s investment, TPIC will strengthen its balance sheet significantly. Also, TPIC will be better able to navigate the evolving market and operating environment in the near term, which should help in delivering long-term growth opportunities.
During the third quarter, ended September 30, 2021, TPIC’s net sales increased 1.2% year-over-year to $479.6 million. The company’s adjusted EBITDA came in at $179,000 Also, its cash and cash equivalents amounted to $119.01 million for the period.
TPIC’s revenue is expected to increase 3.5% year-over-year to $1.73 billion in its fiscal year 2021. Its EPS is expected to grow 73.8% next year.
Of the 13 analysts who have provided ratings for the stock, five rated it ‘Buy.’ The $31.67 consensus price target represents a 67.8% potential gain.
Beam Global (BEEM)
Formerly known as Envision Solar International, Inc., BEEM, in San Diego, Calif., provides sustainable technology for electric vehicle (EV) charging, outdoor media, and energy security. Its product portfolio includes EV ARC (electric vehicle autonomous renewable charger), Solar Tree DCFC, and EV RC DCFC.
This month, BEEM announced that its EV ARC solar-powered EV charging system had been used to charge Volvo Construction Equipment (Volvo CE) compact electric machines in a showcase hosted by the U.S. Fish and Wildlife Service. This equipment and charging system reduce noise and emissions.
BEEM’s revenues increased 63.4% year-over-year to $2.02 million for its fiscal third quarter, ended September 30, 2021. The company’s cash came in at $23.08 million for the period.
Analysts expect BEEM’s revenue to increase 129.7% year-over-year to $20.19 million for its fiscal year 2022. Its EPS is expected to grow 11.9% in the current year.
Of the five Wall Street analysts who have provided a rating for the stock, two rated it ‘Buy.’ The $40 average analyst price target represents a 49.5% potential upside.
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EQNR shares rose $0.45 (+1.82%) in premarket trading Monday. Year-to-date, EQNR has gained 55.77%, versus a 25.01% rise in the benchmark S&P 500 index during the same period.
About the Author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research. More...
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