Green energy growth stocks in North America, India, and elsewhere. They include SolarEdge Technologies, Inc., Enphase Energy, Inc., Canadian Solar Inc., Azure Power Global Ltd., NextEra Energy Partners, Clean Energy Fuels, and TPI Composites. Australian analyst makes their investment picks: BetaShares Global Quality Leaders ETF, Magellan High Conviction Trust, BetaShares Global Sustainability Leaders ETF. More
Transcript & Links, Episode 40, September 11, 2020
Hello, Ron Robins here. Welcome to podcast episode 40 published on September 11 titled “Green Energy Growth Stocks. And More… “— and presented by Investing for the Soul. investingforthesoul.com is your site for vital global ethical and sustainable investing news, commentary, information, and resources.
Remember that you can find a full transcript, links to content – including stock symbols and bonus material – at this episode’s podcast page located at investingforthesoul.com/podcasts.
And Google any terms that are unfamiliar to you.
1. Green Energy Growth Stocks.
I start with a new analyst to this podcast, Aditi Ganguly, who wrote an article about green energy growth stocks titled 4 Green Energy Stocks to GROW Your Portfolio that appeared on stocknews.com.
I’ll mention each stock followed by some of her quotes related to that company.
“1) SolarEdge Technologies, Inc. (SEDG)
… designs, manufactures and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations… On June 23rd, SolarEdge Technologies launched its new Energy Hub Inverter with Prism technology to provide higher flexibility in home backup for residential and commercial users.
As a result, SolarEdge Technologies maintained healthy financial performance amid the pandemic… GAAP net income increased 11% year-over-year to $36.70 million… SolarEdge Technologies expects its revenues to be in the range of $325-$350 million for the third quarter ending September 2020…
Its earnings per share is expected to grow 20% per annum over the next five years… The stock hit its 52-week high of $229.49 in August. SolarEdge Technologies is rated an A Overall [in our] POWR Rating.
2) Enphase Energy, Inc. (ENPH)
… is the world’s leading supplier of microinverters, with a dominating global market presence. Its semiconductor-based microinverter converts individual solar molecule energy and combines it with its patented networking and software technology for energy monitoring and control services…
Though Enphase Energy’s revenue for the second quarter that ended in June 2020 indicates a year-over-year decline, the company reported a record non-GAAP gross margin of 39.6%… Gross profit increased 6.67% from the same period last year to $48.38 million. Enphase Energy’s earnings grew 314.7% over the past twelve months…
Enphase Energy, Inc. is rated a Strong Buy in our POWR Ratings system.
3) Canadian Solar Inc. (CSIQ)
… develops and manufactures solar power products such as solar ingots, wafers, cells modules, etc. through two segments – module and Systems solutions (MSS) and Energy…
Canadian Solar’s… Net revenue for the second quarter (was) $696 million (and) surpassed the estimates of $630-$680 million… The consensus revenue estimate of $861.93 million for the third quarter ending September 2020 indicates a 13.4% rise year-over-year… EPS is expected to grow 20% per annum over the next five years… The stock hit its 52-week high of $26.72 in August.
4) Azure Power Global Ltd. (AZRE)
… owns and operates solar power plants in India under long-term contracts with government agencies, non-governmental energy distribution companies and commercial customers. It has 43 utility scale projects and multiple commercial rooftop projects. Azure Power has been named the most sustainable company in the solar energy industry by the World Finance magazine. It has also been ranked as the top 10th global renewable power producer by Sustainalytics…
The consensus revenue estimate of $43.90 million for the fiscal second quarter ending September 2020 indicates an 8.9% increase year-over-year. Azure’s earnings per share is expected to grow 108% annually over the next 5 years… The stock hit its 52-week high of $25.62 in August.
Azure is rated a Strong Buy in our POWR Ratings system.” End quotes.
2. Green Energy Growth Stocks.
The Motley Fool has again delivered a post on green energy growth stocks. It’s titled Love Renewable Energy? Buy These 3 Stocks. Three analysts each write about one stock recommendation.
I’ll first mention the analyst’s name, then the company they recommend, followed by relevant quotes from them on the company they recommend.
“1) Travis Hoium likes NextEra Energy Partners (NEP)
The real bottleneck in the renewable energy industry isn’t technology or cost or any other operating limitation. The bottleneck is really around building and financing more renewable energy projects… That’s where NextEra Energy Partners comes in.
NextEra Energy Partners is a subsidiary of NextEra Energy (NEE), which owns 5,330 megawatts (MW) of wind and solar assets that have an average of 15 years remaining on contracts to sell electricity to utilities…
What makes this a great stock to own long term is the company’s growth prospects. Through NextEra Energy, it has a large pipeline of renewable energy assets to buy with long-term contracts. That flow of projects is expected to fuel a 12% to 15% increase in the dividend through at least the end of 2024…
2) Howard Smith suggests Clean Energy Fuels (CLNE).
… A growing number of transportation fleet operators are arranging to move away from fossil fuels… Clean Energy Fuels has a solution for them today…
Clean Energy operates approximately 550 natural gas fueling stations in the U.S. and Canada. Its core, and growing, product is a renewable natural gas (RNG) branded Redeem. Renewable natural gas is derived from organic waste from dairy farms, landfills, and wastewater treatment plants…
Redeem reduces carbon emissions by up to 70% compared to diesel or gasoline. Energy giants are taking notice. Total has a 25% stake and supply contract with Clean Energy. And Chevron and BP have also partnered with the company.
3) Jason Hall recommends TPI Composites (TPIC).
Some of the best investments in the green energy space are often companies the average person – or even most investors – have never heard of.
One that certainly meets that mark is TPI Composites, with shares up 117% since going public in 2016, nearly doubling the gains of the S&P 500 over the same period.
The thesis is simple: It already has a massive share of the global wind turbine blade market, but the next two decades will see an acceleration in the deployment of wind turbines, and the world’s biggest wind turbine makers will come to be more reliant on TPI Composites for their blades.
Looking forward, TPI Composites could prove the best growth stock in renewable energy.” End quotes.
3 ASX shares I’d happily buy every month.
Now I have some recommendations from an Australian analyst. The article is titled 3 ASX shares I’d happily buy every month. It appeared in the Australian edition of The Motley Fool.
As usual, I’ll say the name of the company followed by a few relevant remarks from the article’s author, Mr. Tristan Harrison. Though the first two funds aren’t strictly ESG funds, their holdings indicate a strong ESG bias.
“1) BetaShares Global Quality Leaders ETF (ASX: QLTY)
Some of the companies in its holdings are: Apple, Nvidia, Adobe, Facebook, Intuitive Surgical, Accenture, Intuit, Nike, Alphabet and Texas Instruments. I like that its holdings aren’t limited to just one country.
The returns have been strong since inception in November 2018 [returning] 18.8% per annum.
2) Magellan High Conviction Trust (ASX: MHH)
This is a listed investment trust (LIT) which invests in the highest-quality businesses that it can find at a good price.
It maintains a portfolio of a limited number of names, around 10 or so… it picks businesses that are listed in other places like the US or Asia.
Some of its highest-conviction picks are: Alibaba, Alphabet, Microsoft, Tencent and Facebook… Since inception in October 2019 it has returned 10.4% per annum after fees.
3) BetaShares Global Sustainability Leaders ETF (ASX: ETHI)
This ETF, which is all about picking sustainable businesses, has performed very strongly.
Since inception in January 2017, BetaShares Global Sustainability Leaders ETF has returned an average of 20.3% per annum… Its top holdings include names like Apple, Nvidia, Mastercard, Visa, Home Depot, Adobe, Paypal, Tesla, Netflix and Toyota.” End quotes.
Franklin Templeton Launches Muni-Focused Green Bond Fund.
I mostly talk about stocks, but green bonds need to be covered too. One notable new green-ESG bond fund has been launched by one of the mutual fund industry’s pioneers, Franklin Templeton. Here’s an article describing the fund that appeared in ESG Today titled Franklin Templeton Launches Muni-Focused Green Bond Fund.
Quote “Global investment manager Franklin Templeton announced that it has launched the Franklin Municipal Green Bond Fund (FGBKX: US). The new fund will invest in muni green bonds, including climate bonds, sustainability bonds and environmental impact bonds, seeking to maximize income exempt from federal taxes…” End quote.
Well, these are my top news stories and their stock and fund tips — for this podcast: “Green Energy Growth Stocks. And More…”
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Talk to you again on September 25. Bye for now.
© 2020 Ron Robins, Investing for the Soul