From a niche market to a growing giant that investors are fighting over — renewable energy is finally entering the mainstream. Global warming is becoming a bigger threat with each passing day, prompting investments into something that will both help the world and guarantee the best returns.
When it comes to energy stocks and solar stocks, the path toward profitability has been rocky over the past decade. When a new niche market starts becoming popular, the fast expansion will inevitably burden a lot of companies beyond their capacity. This results in poor performance and investors pulling out to save money. However, over the last few years the renewable energy market has stabilized and several companies have come out on top.
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We’re going to show you the five that have delivered excellent performance over the last 10 years:
Enterprise energy has had a 250% return since its 2012 IPO.
Enphase Energy (NASDAQ:ENPH) makes microinverters for solar panels. It went public in March 2012, and since then it has outpaced the 165% return scored by the S&P 500. In 2019, it became the best-performing stock of the year. It’s had 97% revenue growth over the year and a 495% increase in earnings. This was all thanks to the adoption of microinverters, which serve to help convert solar energy into usable power. In addition to its current success, Enphase is also investing time and resources into expansion, so investing in its stocks has huge potential for future investors.
Brookfield Renewable Partners has had a 318% total return in the last 10 years.
Brookfield Renewable Partners (NYSE:BEP) had a whopping 318% total return over the last 10 years. This company is focused on hydropower, and its innovative solutions have led to a high-yield payout for investors. Since 2012, it’s increased investor distribution by a 6% compound annual rate. Brookfield Renewable is continuing to invest in hydropower, and it’s expanded its portfolio to wind and solar. The company expects even more growth in the coming years.
SolarEdge Technologies has had a 344% return since its IPO.
SolarEdge Technologies (NASDAQ:SEDG) went public in 2015. This company makes power optimizers that help convert solar energy into usable energy similarly to microinverters from Enphase. SolarEdge has generated a 344% return. Its stock price almost doubled in 2019, and the fast growth is expected to continue in 2020. One of the best things about this company is that it supplies the renewable energy industry with affordable power optimizers. This means that its products go beyond straightforward energy conversion. The electric vehicle industry and energy storage are only a couple markets where SolarEdge’s products can be used.
NextEra Energy has had a 555% total return in the last 10 years.
NextEra Energy (NYSE:NEE) is one of America’s largest investors in capital infrastructure. Its 555% total return has doubled the S&P 500’s, and the company continues to bring innovations to the renewable energy market. NextEra has grown at an 8.5% compound annual rate since 2005 and it has outperformed all of its competitors several times over in the last seven years. It has a whole line of new renewable energy development projects coming up, and it keeps growing at a breakneck pace that has investors rushing in to take a slice of this profitable pie.
Tesla has had a 1,560% return in the last 10 years.
Tesla (NASDAQ:TSLA) takes the crown when it comes to anything related to renewable energy. Its electric vehicles have come a long way, and the company now makes models that produce zero emissions and are available to the masses. Over the last 10 years, Tesla has been tapping into solar energy and energy storage markets, and while its stock has had several ups and downs, investors have always gotten their fair share of the profits. Since the global focus is shifting toward green energy stocks, companies like Tesla are likely to see even bigger increases in profit in the next several years.
If you are interested in clean energy stocks and want to know which renewable energy companies can deliver, these five stocks are definitely the ones to keep an eye on.