Renewable and clean energy sources are poised to significantly replace fossil fuels over the next few decades. The clean and renewable energy market is expected to grow at a CAGR of 22.7% between 2020 and 2021. Moreover, as the president-elect Joe Biden is expected to make historic investments in clean energy and climate research, the US clean energy industry is expected to get a significant boost in the upcoming years.

The growing demand for sustainable energy is helping several emerging companies record high growth. These companies are working on emerging technology that will power the world in the future. These companies are involved in a diverse array of renewable energy areas such as solar energy, wind power, and hydro-power.

Companies like Tesla, Inc. (TSLA), Albemarle Corporation (ALB), SolarEdge Technologies, Inc. (SEDG), and Plug Power, Inc. (PLUG) are quickly disrupting the energy industry with their innovative offerings. They are working on cutting-edge technologies that should keep driving their stocks higher.

Tesla, Inc. (TSLA)

TSLA designs, develops, manufactures, and markets electric vehicles, related parts, and stationary energy storage systems. The company has operations in the United States, China, Norway, and internationally. TSLA’s stock has gained 392.2% so far this year.

TSLA is poised to be added to the S&P 500 on December 21st, which is driving significant gains for the stock. TSLA has also increased the driving range of its Model S electric sedan to 402 miles on a single charge. This move will make the product more attractive to buyers and help TSLA compete with rivals such as Lucid.

For the quarter ended September 2020, the company set a new record for itself by delivering 139,300 vehicles. The company’s automotive revenue saw an increase of 42% year-over-year while total revenues jumped 39% during the same period.

TSLA is expected to witness revenue growth of 56.5% for the quarter ended March 2021 and 45.5% in 2021. The company’s EPS is estimated to grow 72.6% in 2021 and at a rate of 353.9% per annum over the next five years.

How does TSLA stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Industry Rank

A for Overall POWR Rating

The stock is also ranked #17 out of 33 stocks in the Auto & Vehicle Manufacturers industry.

Albemarle Corporation (ALB)

ALB manufactures, develops, and markets a variety of refined chemicals including lithium used in lithium-ion batteries. The company also produces chemicals with a range of applications in metal processing, plastics, flame retardants, consumer electronics, and more. ALB’s stock has gained so far this year.

ALB has recently been selected by the US Department of Energy to participate in two lithium research projects through a battery manufacturing lab called. The company’s performance over the last three years has been driven by the demand for lithium, which is a key ingredient for electric vehicles.

The company’s results for the quarter ended September 2020 beat wall street expectations. The net sales of the company rose 45.2% year-over-year while there was an increase in EBITDA of 139.1%.

ALB is expected to witness revenue growth of 3.3% for the quarter ended March 2021 and 4% in 2021. The company’s EPS is estimated to grow by 3.1% in 2021 and at a rate of 15% per annum over the next five years.

It’s no surprise that ALB is rated a “Strong Buy” in our POWR Ratings system, with a grade of “A” in Trade Grade, Buy & Hold Grade, Peer Grade, and Industry Rank. In the 69-stock Chemicals industry, it is ranked #5.

SolarEdge Technologies, Inc. (SEDG)

SEDG develops and markets DC optimized inverter systems for solar PV installations. The company is a leading solar energy supplier across the world. SEDG’s stock has gained 171.3% so far this year.

SEDG has recently entered into a contract with the international solar investor, Enfindus, to supply smart energy products including inverters and power optimizers. The company’s single-phase inverter with HD-Wave technology also received approval from the JET for marketing in Japan.

For the quarter ended September 2020, the company’s revenue rose 2% compared to the previous quarter. The company’s operating income also increased by 1% during the same period. The company stated that its solar business outside of the US reached a record high. During the fourth quarter, the company expects to start shipping complete powertrain solutions for electric vehicles.

SEDG is expected to witness revenue growth of 19.3% in 2021. The company’s EPS is estimated to grow by 14.5% in 2021 and at a rate of 20% per annum over the next five years.

Plug Power, Inc. (PLUG)

PLUG is an alternative energy provider that focuses on the development, manufacturing, and marketing of fuel systems for off-road vehicles. The company has operations around the globe. PLUG’s stock has gained 670.9% so far this year.

The company is working towards establishing a PEM Stack and Electrolyzer gigafactory in the United States. The company is in talks with two state governments to finalize the location of the factory. This would be the world’s first PEM technology gigafactory. PLUG has also recently started operations in Japan and has delivered a 25kW GenFuel electrolyzer to Nagasaki, Japan.

For the third quarter, the company has reported an increase in gross billings of 106% year-over-year. The number of fuel cells deployed by the company also grew by 130% during the same period.

PLUG is expected to witness revenue growth of 37% in 2021. The company’s EPS is estimated to grow by 22.6% in 2021 and at a rate of 25% per annum over the next five years.

It’s no surprise that PLUG is rated a “Strong Buy” in our POWR Ratings system, with a grade of “A” in Trade Grade, Buy & Hold Grade, and Peer Grade. In the 59-stock Industrial Equipment industry, it is ranked #6.

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TSLA shares were trading at $517.33 per share on Monday morning, up $27.72 (+5.66%). Year-to-date, TSLA has gained 518.33%, versus a 12.05% rise in the benchmark S&P 500 index during the same period.

About the Author: Aaryaman Aashind

Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...

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