We recently published a list of 10 Most Undervalued Renewable Energy Stocks To Buy Right Now. In this article, we are going to take a look at where Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR) stands against other most undervalued renewable energy stocks.
In 2024, global energy demand increased by 2.2%, quicker than the average over the last decade. Electricity use rose significantly, up 4.3% from last year, primarily due to hotter temperatures, electrification, and the growing digital sector. Renewables were the biggest contributors to the higher energy supply, followed by natural gas and coal. Most of the demand growth came from emerging economies, especially China and India. Natural gas had the strongest growth among fossil fuels, while oil demand softened, plunging below 30% of the energy mix for the first time in 50 years. According to the International Energy Agency, more than 80% of new electricity generation came from renewables and nuclear power in 2024. Solar and wind energy hit new records, and EV sales skyrocketed past 17 million units.
Solar capacity grew by 88% last year, helping it overtake hydropower and nuclear as the fourth largest source of installed capacity. While wind power faced hurdles like supply chain issues and permitting delays, it still set a new generation record and even outperformed coal for two straight months. Battery storage also saw impressive growth, rising by 64%, as utilities used it to store extra wind and solar energy. Looking ahead to 2025, Deloitte expects clean energy demand to grow even more, driven by the rise of clean tech manufacturing, data centers, and carbon capture projects, all of which are increasingly relying on 24/7 clean power.
The American nonprofit organization, Resources for the Future, noted that clean energy saw a major boost with a record $2 trillion invested in technologies like renewables and energy-efficient infrastructure during 2024. This sped up the global energy transition, especially in solar and wind power. While renewables are now some of the cheapest energy sources, fossil fuels, especially coal and gas, still make up a big part of global energy use. Coal is expected to decline significantly by 2050, while the role of gas depends on how ambitious climate policies become. Regions like the United States, Europe, and especially China have led solar growth, but other countries are starting to catch up. However, high costs and financial risks in developing countries could slow things down.
Is Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR) Among The Most Undervalued Renewable Energy Stocks To Buy?
A sprawling hydroelectric power plant nestled high in the mountains.
Our Methodology
For this article, we made a list of all renewable energy stocks listed on American exchanges and picked the 10 stocks with the lowest P/E ratios to compile this list. We have also mentioned the hedge fund sentiment around the holdings, as per Insider Monkey's Q4 2024 database, ranking the list from least to most hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR) ranks 8th on our list of the most undervalued stocks. It is a Brazilian electricity provider that generates, transmits, and sells power. The company uses energy sources such as hydroelectric, thermoelectric, nuclear, wind, and solar plants.
On March 14, Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR) reported a roughly 25% year-over-year increase in its Q4 2024 net profit, which came in at $191.4 million. The company also announced $310 million in dividends for shareholders.
Walleye Capital, an American multi-strategy hedge fund, announced on April 25 that it purchased 174,618 shares of Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR) in the fourth quarter of 2024. The stake is valued at about $999,000.
According to Insider Monkey’s fourth quarter database, 14 hedge funds reported owning stakes in Centrais Elétricas Brasileiras S.A. - Eletrobrás (NYSE:EBR), compared to 9 funds in the previous quarter. Israel Englander’s Millennium Management was the leading stakeholder of the company, with 4.2 million shares valued at $24 million.
Overall, EBR ranks 8th among the most undervalued renewable energy stocks to buy right now. While we acknowledge the potential of EBR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EBR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
