On January 30, Reuters reported that clean energy stocks might be due for a recharge in 2024. Over the past years, cost overruns, supply bottlenecks, and financing problems have impacted the clean energy sector. Regardless, cheaper valuations are gaining traction from investors. One of the world's largest renewable equity funds, the iShares Global Clean Energy ETF lost 75% of its value over the past year. However, global stocks went up by 16%. Moreover, declining interest rates and the long-term growth outlook of the industry present optimistic prospects. The head of European Equity Strategy at AXA Investments Partners said:
"Renewables have regained valuations that are definitely more attractive, even in the medium term. We see there's growth, and now that rates have peaked, it's a segment that can be interesting. Returns won't be huge but are visible from businesses that are well managed."
Additionally, most investors seem to believe that the high sensitivity to interest rates of clean energy stocks presents them as a strategic option for investors, to leverage the potential monetary policies from the Federal Reserve. Reuters cited a survey by Bank of America stating that fund managers having $589 billion in assets identified renewable and biotech stocks as the leading beneficiaries of the US rate cuts.
EDP Group CEO Expects Operations to be 100% Renewable by 2030
On January 18, the CEO of EDP Energias de Portugal SA (OTC:EDPFY), a major name in the renewable industry, Miguel Stilwell d'Andrade appeared in an interview on CNBC to discuss the company's commitment to clean energy and the challenges associated with the energy transition. d'Andrade highlighted the importance of infrastructure to deploy clean energy and also emphasized EDP Energias de Portugal SA's (OTC:EDPFY) progress on the clean energy transition. He said that the company is expected to be out of coal by 2025. He further talked about Portugal's resilience in the energy crises and price hikes. He added that the high penetration of renewable energy in the country decreases its dependency on gas or the price of fossil fuels. He said:
"We expect to be out of coal by 2025. That's a firm commitment we've already decommissioned some of our coal plants and are decommissioning the rest by 2025, and we state it will be all green by 2030. So, in terms of the target, that's when we expect to be 100% renewable, and then by 2040 being net zero. In other words, not just scope one, but scope two and scope three all along the value chain.
Miguel Stilwell d'Andrade further emphasized that clean energy sources such as solar and wind energy are gaining traction in Europe. He said:
"I'd argue that Renewables are now the most sustainable or the most competitive source of energy in terms of developing the wind farms themselves in terms of the costs, that's built into the actual price then of the of the wind and the solar and Europe has fantastic resources both in wind and in solar more obviously towards the South."
Clean Energy Stocks with Huge Upside Potential
Some of the best cheap clean energy stocks to buy according to analysts right now include Tigo Energy, Inc. (NASDAQ:TYGO) as well. Tigo Energy, Inc. (NASDAQ:TYGO) is a leading solar energy systems company. On February 21, the company announced the launch of its GO EV Charger for the Italian market. The smart residential EV charging station combines the Tigo EI Residential Solar Solution comprising inverters, battery systems, and other required solar installation components. The new solar-powered EV charger by Tigo Energy, Inc. (NASDAQ:TYGO) is well-suited for solar installers as it provides strong commissioning, monitoring, and fleet management functions.
Solaria Energía y Medio Ambiente, S.A. (OTC:SEYMF) is also one of the cheap clean energy stocks with huge upside potential. On January 19, the company announced that it had secured a critical permit for its gigantic 595 MW solar project in Garoña. This is a major step towards its goal of 3 GW of solar power generation by the end of 2024. This project by Solaria Energía y Medio Ambiente, S.A. (OTC:SEYMF) signifies its efforts to promote the clean energy transition. This project is expected to replace the obsolete Santa María de Garoña nuclear power plant to provide clean, sustainable, and cost-effective solar-powered energy. The new park by Solaria Energía y Medio Ambiente, S.A. (OTC:SEYMF) will have a generation capacity to provide electricity to roughly 300,000 homes in Burgos. In addition to Tigo Energy, Inc. (NASDAQ:TYGO), Solaria Energía y Medio Ambiente, S.A. (OTC:SEYMF), and EDP Energias de Portugal SA (OTC:EDPFY), there are several other clean energy stocks that Wall Street analysts are bullish on. Let's take a look at them in detail below.
10 Cheap Clean Energy Stocks To Buy According to Wall Street Analysts
10 Cheap Clean Energy Stocks To Buy According to Wall Street Analysts
Methodology
To compile our list of the 10 cheap clean energy stocks to buy according to Wall Street analysts, we exhausted our research by looking at multiple clean energy and renewable energy ETFs and also using stock screeners from Yahoo Finance and Finviz. We formed an initial list of 30 clean energy stocks and then picked 25 stocks with a P/E ratio of less than 15, as of March 11. We then sourced these stocks' price targets and upside potential from Market Screener, and picked the 10 stocks with the lowest PE ratios, highest upside, and consensus Buy or Buy equivalent ratings, as of March 11. We have also mentioned the hedge fund sentiment for stocks, where available, sourced from Insider Monkey's database of 933 elite hedge fund managers, as of Q4 2023. The 10 best cheap clean energy stocks to buy according to analysts are ranked in ascending order of their average upside potential, as of March 11.
10 Cheap Clean Energy Stocks To Buy According to Wall Street Analysts
Entergy Corporation (NYSE:ETR) is an electric power generation and renewable energy company, with operations in nuclear generation, renewable energy generation, and hydroelectric operations. The company has around 45 in-service and in-development renewable projects, as of 2023. The company is valued at $21.99 billion and has a P/E ratio of 9.31, as of March 11.
Entergy Corporation (NYSE:ETR) was a part of 36 hedge funds' portfolios, holding collective stakes worth over $942 million in the company, at the end of Q4 2023. As of December 31, Millennium Management was the most prominent shareholder in the company and held a position worth over $170 million.
Based on the consensus of 19 Wall Street analysts as of March 11, Entergy Corporation (NYSE:ETR) has a consensus Buy rating. The stock has an average price forecast of $112.6 and a high forecast of $123. The average price target represents an 8.98% upside from the current price of $103.4. This February, James Thalacker from BMO Capital raised his price target on the stock from $110 to $113 and maintained an Outperform rating.
9. Xinyi Solar Holdings Limited (OTC:XISHY)
P/E Ratio as of March 11: 11.53
Average Upside Potential as of March 11: 9.61%
Xinyi Solar Holdings Limited (OTC:XISHY) is ranked among the cheap clean energy stocks to buy according to Wall Street analysts. The company is involved in the sale and production of solar products, the development and operation of solar farms, engineering and procurement, and construction services.
Xinyi Solar Holdings Limited (OTC:XISHY) has 17 Buy ratings from analysts, as of March 11, and has an average price target of HKD 6.85. The stock's high forecast is HKD 11.5. The average price target represents an upside potential of 9.61% from current levels.
As of March 11, Xinyi Solar Holdings Limited (OTC:XISHY) has a market cap of $6.79 billion and a P/E ratio of 11.53.
Altus Power, Inc. (NYSE:AMPS) is placed 8th on our list of cheap clean energy stocks to buy according to Wall Street analysts. The company provides clean energy solutions to institutes, corporations, schools, hospitals, and municipalities. At the end of the fourth quarter of 2024, Altus Power, Inc. (NYSE:AMPS) was a part of 14 hedge funds' portfolios that held collective stakes worth over $50.4 million in the company.
Based on the consensus of 7 Wall Street analysts, as of March 11, Altus Power, Inc. (NYSE:AMPS) has a consensus Buy rating. The stock has an average price target of $8.25 and a high forecast of $10. The average price target represents a 29.8% upside from its current price of $6.49.
This February, B. Riley Securities analyst Christopher Souther maintained a Buy rating on the stock and raised his price target from $8 to $10. As of March 11, the company is valued at $1.06 billion and has a P/E ratio of 12.29.
7. GCL Technology Holdings Limited (OTC:GCPEF)
P/E Ratio as of March 11: 2.21
Average Upside Potential as of March 11: 36.1%
GCL Technology Holdings Limited (OTC:GCPEF) is a leading supplier of green energy in China. It provides power and heat through cogeneration and renewable energy generation. The company provides high-efficiency products including PV silicon wafers and Perovskite PV modules.
GCL Technology Holdings Limited (OTC:GCPEF) has a consensus Buy opinion based on ratings from 11 Wall Street analysts, as of March 11. The stock has an average price target of CNY 1.526 and a high forecast of CNY 2.789. The average price forecast represents an upside potential of 36.12% from its closing price on March 11.
As of March 11, GCL Technology Holdings Limited (OTC:GCPEF) has a market capitalization of $4.2 billion and a P/E ratio of 2.21.
6. Acciona S.A. (OTC:ACXIF)
P/E Ratio as of March 11: 10.88
Average Upside Potential as of March 11: 37.1%
Acciona S.A. (OTC:ACXIF) is ranked 6th on our list of cheap clean energy stocks to buy according to Wall Street analysts. The company provides infrastructure and renewable energy solutions. Its renewable energy portfolio includes wind, solar, hydropower, biomass, and electric mobility solutions.
Acciona S.A. (OTC:ACXIF) has a consensus Outperform opinion, based on ratings from 13 Wall Street analysts, as of March 11. The stock has an average price target of EUR 154.6 and a high forecast of EUR 215. The average price target represents a 37.1% upside from current levels. As of March 11, the stock has a market cap of $6.81 billion and a P/E ratio of 10.88.
