S&P 500 ^GSPC 5,037.23 +1.41%
Nvidia NVDA $797.28 +4.63%
Tesla TSLA $141.89 -3.51%
Alphabet GOOG $159.09 +2.16%
Amazon AMZN $178.12 +2.00%
Meta META $488.59 +1.56%
Apple AAPL $166.86 +1.12%
Microsoft MSFT $402.61 +0.87%

4 renewable energy stocks to avoid

Charles Sainsbury
28. 3. 2024
3 min read

Investing in renewable energy companies is becoming increasingly attractive. Growing awareness of climate change and continued pressure to reduce greenhouse gas emissions are fuelling the growth of this dynamic sector. Companies operating in this sphere are playing a key role in the transition to more sustainable forms of energy production, particularly through their focus on wind, solar and other renewable energy sources, but with this growth comes new challenges.

For all their ambition and extensive activity, some companies face complex issues that can have a significant impact on their financial performance and long-term sustainability. These challenges include administrative hurdles, declining profits, increasing competition in the renewable energy sector and technological challenges associated with the development of new energy technologies.

NextEra Energy Partners $NEP+2.1%

NextEra Energy Partners is one of the leading players in wind and solar energy. The company has ambitious plans and extensive operations that include the operation and construction of wind and solar power plants. However, the lack of stability in its financial results poses a challenge for investors. There has been adecline in earnings in recent years , which has been reflected in the stock's performance. For example, for 2023, the company saw a 136% decline in net income compared to theprevious year. In addition, the NextEra Energy Partners faces various administrative challenges, including regulatory and permitting processes, which may impact its future performance and growth.

NEP
$27.70 $0.56 +2.06%
Capital Structure
Market Cap
2.5B
Enterpr. Val.
8.6B
Valuation
P/E
79.8
P/S
2.0
Dividends
Yield
12.7%
Payout
719.4%

Clearway Energy $CWEN+1.4%

Clearway Energy is a clean energy company with a diverse portfolio including wind, solar and gas-firedgeneration. However, despite its extensive operations, it has Clearway Energy has struggled to maintain stable revenues. For 2023, the company saw a 5% decline in revenue compared to the previous year. Increasing competition in the renewable energy sector and technological challenges associated with the development of new energy technologies may make it difficult for Clearway Energy to remain competitive in thelong term.

CWEN
$23.10 $0.32 +1.38%
Capital Structure
Market Cap
4.6B
Enterpr. Val.
12.7B
Valuation
P/E
34.0
P/S
3.5
Dividends
Yield
6.9%
Payout
797.4%

AES Corporation $AES+1.9%

AES Corporation is a global energy company focused on renewable energy, including wind, solar and hydroelectric power. The company has ambitious growth and expansion plans, but the lack of stability in its financial results poses a risk to investors. In recent years, revenues AES have not been growing, raising concerns about its ability to remain profitable and competitive. Challenging conditions, including volatile energy prices, may further undermine the company's stock performance.

AES
$16.71 $0.31 +1.89%
Capital Structure
Market Cap
11.7B
Enterpr. Val.
36.9B
Valuation
P/E
48.2
P/S
0.9
Dividends
Yield
4.1%
Payout
183.5%

Sunnova Energy $NOVA+3.0%

Sunnova Energy is a company with an extensive network of customers that specializes in solar energy and related services. Although the company has a strong customer base, it is struggling with mounting losses, indicating potential problems in maintaining profitability over the long term. For 2023 Sunnova Energy recorded a loss of $15 million, a 20% increase over the previous year. These losses may be due to competitive pressures, the cost of developing new technologies, or inefficient business models. Investors should exercise caution and carefully consider the risks associated with investing in this company, particularly with respect to its ability to achieve sustainable and stable profits in the future.

NOVA
$3.92 $0.12 +3.03%
Capital Structure
Market Cap
465.4M
Enterpr. Val.
7.8B
Valuation
P/E
-1.1
P/S
0.6
Dividends
Yield
-
Payout
-0.1%

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is entirely up to you, so always conduct a thorough analysis of your own.

Source.


Pass the article on, or save it for later.