Articles covered include: “Top Alternative Energy Stocks for Q3 2022”; “Ameresco: Alternative Energy’s Best Near-Term Capital Gain Prospect”; “Alternative Energy Stock Quietly Having a Great Year”; “3 Most Undervalued Renewable Energy Stocks to Buy”; “2 Unstoppable Renewable Energy Stocks to Buy for the Next Decade”; and “3 High-Yield Infrastructure Stocks to Buy Now.” And more

Podcast: ESG Energy Stocks for 3Q 2022

Transcript & Links, Episode 88, July 29, 2022

Next podcast either September 2 or 9

Hello, Ron Robins here. Welcome to my podcast episode 88 published on July 29, 2022, titled “ESG Energy Stocks for 3Q 2022” — and presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Remember that you can find a full transcript, and links to content – including stock symbols, quotes, and bonus material – at this episode’s podcast page located at investingforthesoul.com/podcasts.

Now if any terms are unfamiliar to you, simply Google them.

Also, just a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, nor do I receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal to you any personal investments I have in the investments mentioned herein.

Please note that my next podcast will be either September 2 or 9. I’m taking August off to work on some projects.

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1. ESG Energy Stocks for 3Q 2022

Now it seems that most analysts’ ESG recommendations in the media continue to focus on ESG energy stocks and funds. So, I have several articles with that view. The first one is titled Top Alternative Energy Stocks for Q3 2022. It’s by Nathan Reiff. Found at investorpedia.com. Now some quotes.

“Here are the top three alternative energy stocks with the best value, the fastest growth, and the most momentum…

1) Daqo New Energy Corp. (DQ)

Is a China-based solar energy company that manufactures polysilicon for sale to manufacturers of solar cells and modules. The company also manufactures photovoltaic wafers. Daqo reported earnings for Q1 2022 on April 21. Net income attributable to shareholders surged by over sixfold while revenues quintupled year-over-year (YOY). This performance was driven in part by a jump in polysilicon sales volume.

2) Excelerate Energy Inc. (EE)

Is a liquified natural gas (LNG) company. It offers regasified natural gas delivery, storage, and other related services. It has operations around the globe. On May 20, the company reported that it had signed a 10-year contract with a subsidiary of Gasgrid Finland Oy to charter a floating storage and regasification vessel. The vessel will serve Finland and the Baltic region with liquefied natural gas and related services.

3) Iberdrola SA (IBDRY)

Is a Spain-based multinational electric utility company. The company engages in the generation, distribution, and trading of electricity. It specializes in clean energy, including onshore and offshore wind, and solar energy.”

End quotes. My comment about Daqo. It’s still being accused of using forced labor.

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2. ESG Energy Stocks for 3Q 2022

Now, here’s the second article in this ESG energy stocks theme titled Ameresco: Alternative Energy’s Best Near-Term Capital Gain Prospect. By Peter F. Way on seekingalpha.com. Here are some quotes from Mr. Way’s blog.

“A 3-5 month prospect from here of Ameresco share prices could reasonably range from a $46.00 low to $58.80 high from its present price of $47.30, a +24.3% gain.

From Yahoo Finance. Quote. ‘Ameresco, Inc., (NYSE:AMRC) (is) a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, and internationally. It offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations…

In addition, the company sells photovoltaic (PV) solar energy products and systems, as well as provides consulting and enterprise energy management services; and owns and operates a wind power project located in Ireland… As of December 31, 2021, the company owned and operated 147 small-scale renewable energy plants and solar PV installations.” End quotes.

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3. ESG Energy Stocks for 3Q 2022

And a third article in the ESG energy stock space titled Alternative Energy Stock Quietly Having a Great Year. By Schaeffer’s Digital Content Team on schaeffersresearch.com. This is some of what the team has to say.

“Enphase Energy, Inc. (NASDAQ:ENPH)

Is a global energy technology company and a supplier of microinverter-based solar and battery systems. The company’s semiconductor-based microinverter system converts energy at the individual solar module level and brings a system-based high-technology approach to solar energy generation, storage, control, and management. The company has shipped more than 45 million microinverters, and over 2.0 million Enphase-based systems have been deployed in more than 135 countries…

On the charts, ENPH is up roughly 17% in 2022…

Enphase Energy stock offers a rich valuation at a price-earnings ratio of 55.87 and a price-sales ratio of 18.24. Nonetheless, the company has maintained high and consistent growth rate over multiple years, which has helped the market justify the company’s inflated valuation… Enphase Energy is also expected to grow its revenues and earnings 31.7% and 22.9%, respectively, for fiscal 2023.” End quotes

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4. ESG Energy Stocks for 3Q 2022

And a fourth article in this ESG energy stocks vein is titled 3 Most Undervalued Renewable Energy Stocks to Buy. By Will Ashworth on InvestorPlace.com. Among Mr. Ashworth’s comments are the following.

“1) Brookfield Renewable Corporation (NYSE:BEPC)

Was created so that investors could invest in its renewable power assets through a corporation rather than a limited partnership…

The company’s June 2022 annual shareholder’s meeting highlighted that Brookfield Renewable Corporation generated $934 million in funds from operations (FFO) in 2021, 10% higher than a year earlier…

In the five years between 2021 and 2026, it expects to grow funds from operations by 10% or more annually…

For those who want a more diversified portfolio, you can own Brookfield Renewable Corporation indirectly through Brookfield Asset Management (NYSE:BAM), which owns 26% of the company. Brookfield Asset Management stock is down 25% year-to-date.  

You won’t go wrong owning Brookfield Asset Management over the long haul.   

2) NextEra Energy Partners LP (NYSE:NEP)

Is a growth-oriented limited partnership created by its parent company, NextEra Energy (NYSE:NEE), in June 2014. It owns wind and solar projects, natural gas, and infrastructure assets in the U.S…

It (seeks) to grow LP distributions by 12% to 15% per year between 2019 and 2024. So far, it’s increased them by approximately 15% per year… Its annualized distributions since its IPO have increased by 290%, from 75 cents to $2.93 at the end of 2021.  

Down 9.4% YTD, I wouldn’t say that NextEra Energy Partners LP is a screaming buy, but it’s not overpriced either.

3) Ameresco (NYSE:AMRC) (Yes again!)

Is (in) the business of owning renewable assets and helping others implement clean energy solutions for their businesses…

In 22 short years, Ameresco’s completed more than $11 billion in energy solution projects for more than 8,000 customers worldwide. In addition, it owns 353 million watts of energy (MWe) assets for solar, landfill gas, renewable natural gas (RNG), and battery storage…

Ameresco has been able to increase its revenues since 2017 by more than 21% annually, from $717 million in 2017 to an estimated $1.87 billion in 2022. Over the same period, the company has grown its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by 27.1% annually.  

With Ameresco stock down more than 46% YTD, it’s trading at the same levels it did in December 2020, 18 months ago. Under $40 would be a perfect entry point. ” End quotes.

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5. ESG Energy Stocks for 3Q 2022

In this next article Brookfield Renewable Corporation and NextEra Energy Partners LP are again recommended. It’s titled 2 Unstoppable Renewable Energy Stocks to Buy for the Next Decade. By Matthew DiLallo. On fool.com.

“1) Brookfield Renewable (BEPC)

Brookfield Renewable operates a globally diversified portfolio of renewable energy and energy transition assets. It currently generates 21 gigawatts (GW) of renewable energy… Its assets produce steady cash flows backed by long-term power purchase agreements…

Brookfield anticipates that mergers and acquisitions will add up to 9% per share to its bottom line each year. The company recently raised a record $15 billion for an energy transition fund to help companies decarbonize their operations. That’s giving it additional capital to complete deals, positioning it to further capitalize on the decarbonization megatrend. 

2) NextEra Energy, Inc. (NEE)

NextEra Energy operates Florida Power & Light (FPL), a leading electric utility in the state, and NextEra Energy Resources, a large-scale clean energy infrastructure business… The energy resources unit operates natural gas pipelines, renewable energy generating facilities, battery storage operations, and electricity transmission lines that generate steady cash flow backed by long-term fee-based contracts.

The company… recently unveiled its Real Zero strategy to eliminate its carbon emissions by 2045. Florida Power & Light is undertaking the largest solar energy expansion in the nation, which it’s supplementing with large-scale battery storage deployment. It also aims to replace natural gas in its power plants with green hydrogen and renewable natural gas…

Management expects profits to grow by more than 10% this year. It then foresees them expanding at the high end of its 6% to 8% target range through at least 2025. That should give the utility the funds to grow its 2.1%-yielding dividend by at least 10% annually through 2024.” End quotes. Incidentally, Florida Power & Light is just accused of unethical competitive behavior.

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Top Solar Panel Companies 2022

Finally, this article is not a stock recommendation but rather an interesting assessment of solar panel makers available in the US. It’s titled Top Solar Panel Companies 2022 and by Lisa Iscrupe on saveonenergy.com. Here is some of what Ms. Iscrupe and fellow researchers say. Quote.

“The solar industry is a combination of many business sectors. From solar installers to dealers to solar panel manufacturers, navigating your solar energy journey can take time. When you are researching solar panels for your home, one place that’s good to start is with the solar panel company or manufacturer that you want. Based on our research, here’s our top 10 solar panel companies:

End quotes. There’s much more information on their site.

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3 High-Yield Infrastructure Stocks to Buy Now

Now we turn from ESG energy stocks to infrastructure with an article titled 3 High-Yield Infrastructure Stocks to Buy Now. It’s by Daniel Foelber, Scott Levine, and Lee Samaha. Again on fool.com. Now one of the recommendations is Kinder Morgan, an oil-gas pipeline company. Hence, I’m leaving it out.

“1) Scott Levine picks Brookfield Infrastructure (BIPC) (BIP)

… Currently offers an enticing forward dividend yield of 3.8%.

With global operations in North and South America, Europe, and the Asia Pacific region, Brookfield Infrastructure has a worldwide presence in a variety of infrastructure projects including (but not limited to) natural gas pipelines and storage, data centers, toll roads, and electricity transmission… investors should be relieved to learn that 90% of the company’s debt is a fixed rate…

Should the company return $2.16 to unitholders in 2022 as it plans, it will represent an approximate 10% compound annual growth rate for its distribution since 2009. Looking ahead, management has targeted continued annual distribution growth of 5% to 9%.

2) Lee Samaha recommends Hubbell (HUBB)

There aren’t many industrial companies whose earnings are trending ahead of initial expectations going into 2022, but Hubbell is one of them. Management began 2022 forecasting organic sales growth of 8%-10% and adjusted diluted earnings per share (EPS) of $8.75–$9.25 only to raise it to 11%-13% and $9-$9.40 on the first-quarter earnings call in late April…

The company makes electrical equipment, meters, connection products, and lighting fixtures. About 56% of its sales go to the utility market (mainly transmission and distribution), with 44% to electrical solutions (electrical products, connection, and bonding). There’s a need to replace the infrastructure of an aging U.S. electrical grid…

No company will be truly safe from a recession, but Hubbell stands to do relatively well. Throw in a 2.3% dividend yield, and the stock is attractive for investors.” End quotes.

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Other Honorable Mentions – not in any order, links on this podcast’s webpage

1) Title This Renewable-Energy Juggernaut Continues to Produce Powerful Results on fool.com. By Matthew DiLallo.

2) Title 3 Sustainable ETFs for ESG-Focused Investors on the Canadian yahoo.com site. By Adam Othman.

3) Title My Top Renewable Energy Stock for the Second Half of 2022 on fool.com. By Daniel Foelber.

Plus an article for UK investors — again link on this podcast’s webpage

Title Best ESG Funds 2022 – Forbes Advisor UK. By Andrew Michael.

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Ending Comment

Well, these are my top news stories with their stock and fund tips — for this podcast: “ESG Energy Stocks for 3Q 2022.”

To get all the links, and stock symbols, or to read the transcript of this podcast — and more — go to investingforthesoul.com/podcasts and scroll down to this episode.

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Thank you for listening.

Now I’m taking August off to work on some projects, so I’ll talk to you next Friday, either September 2nd or 9th. Have a great August! Bye for now.

© 2022 Ron Robins, Investing for the Soul