Today, almost everyone knows the renewable or green energy sector. Many people and companies understand that this is the future and that its long-term outlook is positive. When considering green energy investments, long-term investors should be stock selective and keep an eye on such stocks to make informed decisions. Also, they should remember that investing in stocks isn’t going to be smooth sailing.
If you’re thinking of investing in a greener future, then renewable energy stocks can be a good investment. The alternative energy sector comprises businesses that generate and distribute clean energy, and provide services related to renewable energy. Solar, geothermal, and hydroelectric are some examples of alternative energy.
As per this research, at least 11% of global primary energy is a result of renewable technologies.
Should You Invest in Renewable Energy Stocks?
The International Energy Agency (IEA) said in its 2021 renewable energy market update that renewables were the only energy sources whose demand increased in 2020, despite the pandemic.
The increased demand benefits companies like Brookfield Renewable Partners (NYSE: BEP) and NextEra Energy Partners (NYSE: NEP). If you are thinking of investing in renewable energy stocks, today is the right time to make your move.
How is Renewable Energy Stock a Good Investment?
Renewable energy’s demand has been growing immensely, and it’s not expected to stop anytime soon. Also, falling costs and government support are helping companies find new green energy solutions.
Investing in renewable energy stocks not only adds versatility to your portfolio but also increases your chances of gaining profit. There are many stocks that have solid news catalysts. In addition, as the sector is growing, there are chances of gaining profit.
Top Renewable Energy Penny Stocks to Watch
Aqua Metals (AQMS)
The company behind the clean recycling technology for lead-acid batteries, Aqua Metals, is expected to have a bright future. When it comes to the company’s performance in the stock market, it reached $7.65 in January this year. Apart from that, it had two price spikes in February.
However, Aqua Metals failed to carry the momentum forward. Nevertheless, experts believe the stock holds the potential to bounce back in the near future.
Ocean Power Technologies (OPTT)
Ocean Power Technologies takes a different route to harness the power of nature for energy sources. It has been experimenting with a wave energy system, which converts the ocean’s currents into usable energy. The company’s approach seems promising, which makes it an interesting stock to watch.
Solar Integrated Roofing Corporation (OTCPK: SIRC)
The solar and roofing installation company, headquartered in California’s Poway, recently acquired an outsourcing firm. According to CEO David Massey, the move may strengthen the company’s aggressive acquisition strategy.
Many investors believe SIRC is a supernova that holds the potential to spike again in the near future.
Although renewable energy is the future, it doesn’t mean all kinds of stocks are worth the attention. Instead, consider trading energy penny stocks and do your research to increase your chances of gaining profit.