Clean energy investors are enduring another tough year as traders continue to shy away from the alternative energy sector. The solar power sector in particular highlights the negative sentiment that pervades renewable energy investments. recent reports According to the Solar Energy Industries Association (SEIA), the United States is on track to add nearly 40 gigawatts of solar energy capacity in 2024. This is more than double last year's total and more than triple the capacity added in 2022. Despite the sector's apparent rapid growth, solar stocks have significantly underperformed the sector's popular benchmarks. Invesco Solar ETF (NYSEARCA:TAN), -35.3% year-to-date return vs. 24.3% year-over-year S&P500.
President-elect Trump's inauguration is seen as bearish on renewable energy investment. Trump has made no secret of his disdain for clean energy for years, repeatedly criticizing Biden for his historic criticisms. inflation control law The IRA described this as the “biggest tax increase in history”. President Trump promised to cancel “unused” funds under the IRA after he assumed the Oval Office.
However, there are some areas in the world of renewable energy that look very promising. Here are three renewable energy stocks that outperformed this year and have the potential to outperform again in 2025.
Eco Wave Power (NASDAQ:WAVE)
Market capitalization: $77.7 million
Year-to-date return: 951%
eco wave power (NASDAQ:WAVE) is a wave energy company that develops wave energy conversion (WEC) technology to convert ocean and ocean waves into clean electricity. WAVE stock is soaring as the company's stock price rises Obtained final national permit Received support from the U.S. Army Corps of Engineers for a wave energy project at the Port of Los Angeles, California. The company will install eight wave energy floats on pilings of the existing concrete wharf structure on the east side of the port's Municipal Wharf 1. According to Eco Wave, securing the final permit marks the completion of two important milestones in the agreement with Eco Wave. shell company (NYSE:SHEL) This is expected to increase the company's revenue in Q4 2024.
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Europe is a world leader in blue energy; almost half Global investment in ocean energy over the past decade has flowed to the continent. This is great news as Eco Wave Power has a good reputation in the area. In fact, the company's first operational wave energy plant was developed in Gibraltar with EU funding. Eco Wave Power is currently developing a 20 MW wave energy project in Porto, Portugal, as part of the country's plan to generate 85% of its electricity from renewable sources by 2030. Eco Wave Power established a subsidiary in Portugal in 2020 and began licensing. process. In March 2024, the company Approved Commence construction and commit to completing the project within two years.
GE Vernova
Market capitalization: $94.6 billion
Year-to-date return: 135%
One of the newest companies in this field, GE Vernova (NYSE:GEV) was founded independently in 2023. general electric (NYSE:GE). The Cambridge, Massachusetts-based company manufactures and services energy equipment. GE Vernova operates in the power, wind and electrification sectors. As a supplier of power generation assets, the company is well positioned to benefit from sustained growth trends.
2 weeks ago, GE Vernova Reaffirmed guidance The company has raised its outlook for revenue and free cash flow for fiscal 2024, as well as its outlook for revenue, free cash flow and adjusted EBITDA margin for fiscal 2025. The company now sees fiscal 2024 revenue trending toward the high end of its guidance of $34 billion to $35 billion. Adjusted EBITDA margin will be 5.5% to 6.0%, down from the previous forecast of 5% to 7%. Free cash flow is trending toward the high end of guidance of $1.3 billion to $1.7 billion.
GE Vernova projects fiscal 2025 sales in the range of $36 billion to $37 billion. This is an upward revision from previous guidance for mid-single-digit growth, implying sales of $35 billion to $37 billion. Adjusted EBITDA margin was in the low single digits and free cash flow was $2.0 billion to $2.5 billion, up from $1.2 billion to $1.8 billion previously.
”We are executing on our financial strategy and expect to generate cumulative free cash flow of at least $14 billion through 2028.said Ken Parks, GE Vernova CFO.
Tesla Inc. (NASDAQ:TSLA)
Market capitalization: $1.5 trillion
Year-to-date return: 73.8%
tesla company (NASDAQ:TSLA) is one of the largest electric vehicle manufacturers on the planet. TSLA stock is trading near all-time highs in a strong bullish tone, fueled by the belief that Elon Musk's company will benefit from a Trump administration friendly to the self-driving car approval process. We will rapidly expand our robotaxi fleet over the next two years.
However, Wall Street is more cautious on the stock, giving TSLA a hold rating and an average price target of just $259.66, well below the current share price of $421.44. Some bears point to a similar monster rally in 2021, followed by a decline of more than 70% in the 18 months.
Written by Alex Kimani, Oilprice.com
