Three renewable energy stocks that look buy-worthy today include Atlantica Sustainable Infrastructure (NASDAQ:AY), First Solar (NASDAQ:FSLR), and Vivint Solar (NYSE:VSLR). Here's why you might want to buy them now.
Still a bargain (with a big tailwind for growth)
With shares up 23% year to date, Atlantica Sustainable Infrastructure might feel more like a renewable energy stock you missed out on, not one to buy right now. That's doubly the case when you look at the huge 46% gains (48% when adding in dividends) the stock has delivered since its March 23 bottom.
But it would be a big mistake to fixate on those recent gains and miss out on Atlantica's prospects to deliver steady, growing cash flow for many years to come. The company owns wind and solar power generation assets, power transmission lines, and water desalination systems -- booking steady, recurring cash flow that's highly insulated from recessions.
Atlantica owns assets in North America, Europe, and South America, and is positioned for many years of growth ahead. As an operator and developer of utility-scale systems on multiple continents, it's positioned to be a major player. But with a tiny asset base -- less than 1.5 gigawatts of capacity across 25 assets -- it's a very small player in the global market.
As a result, investors who buy shares now, while Atlantica is still a small fish, should see outsize profits as it grows much larger in the global renewables ocean. It has a dividend yield of 5.9% at recent prices, a solid portfolio of assets, and a tremendous pipeline for growth. So investors should focus not on the recent run-up in the stock price, but on the enormous growth potential Atlantica could deliver.
An innovator with a major advantage
First Solar is a leader in the utility-scale segment of the solar-panel industry. The company's thin-film technology is a competitive advantage against low-cost silicon panels; they operate more reliably in extreme weather, and with each iteration have proven superior in generating a predictable amount of power that's close to their rated output. For utility project developers and operators, this has real value; it's why First Solar is consistently one of the biggest sellers of panels for utility-scale projects, particularly in North America.
But its technology isn't the company's only advantage. First Solar carries more than $1 billion in net cash, and has consistently carried about $1 billion more cash than debt on its balance sheet for almost a decade. This cash buffer has done wonders to help it ride out the highly cyclical nature of utility-scale solar-panel demand. While the bigger trend is growth, demand can ebb and flow across quarters and even years, and having the cash to ride out the swings in demand enables First Solar to continue investing capital in research and development, and in manufacturing expansion.
FSLR DATA BY YCHARTS.
As a result, the company is able to ride out market downturns while still strengthening its business, while competitors are often slashing expenses just to keep the lights on.
At recent prices, First Solar looks like a solid bargain. Shares are down about 16% this year, while the company is on track to have grown its capacity about 30% within the next couple of years. All that cash is paying off, and investors who buy at these levels should enjoy massive profits over the next decades.
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Still a bargain
Still a bargain (with a big tailwind for growth)
With shares up 23% year to date, Atlantica Sustainable Infrastructure might feel more like a renewable energy stock you missed out on, not one to buy right now. That's doubly the case when you look at the huge 46% gains (48% when adding in dividends) the stock has delivered since its March 23 bottom.
But it would be a big mistake to fixate on those recent gains and miss out on Atlantica's prospects to deliver steady, growing cash flow for many years to come. The company owns wind and solar power generation assets, power transmission lines, and water desalination systems -- booking steady, recurring cash flow that's highly insulated from recessions.
Atlantica owns assets in North America, Europe, and South America, and is positioned for many years of growth ahead. As an operator and developer of utility-scale systems on multiple continents, it's positioned to be a major player. But with a tiny asset base -- less than 1.5 gigawatts of capacity across 25 assets -- it's a very small player in the global market.
As a result, investors who buy shares now, while Atlantica is still a small fish, should see outsize profits as it grows much larger in the global renewables ocean. It has a dividend yield of 5.9% at recent prices, a solid portfolio of assets, and a tremendous pipeline for growth. So investors should focus not on the recent run-up in the stock price, but on the enormous growth potential Atlantica could deliver.
An innovator with a major advantage
First Solar is a leader in the utility-scale segment of the solar-panel industry. The company's thin-film technology is a competitive advantage against low-cost silicon panels; they operate more reliably in extreme weather, and with each iteration have proven superior in generating a predictable amount of power that's close to their rated output. For utility project developers and operators, this has real value; it's why First Solar is consistently one of the biggest sellers of panels for utility-scale projects, particularly in North America.
But its technology isn't the company's only advantage. First Solar carries more than $1 billion in net cash, and has consistently carried about $1 billion more cash than debt on its balance sheet for almost a decade. This cash buffer has done wonders to help it ride out the highly cyclical nature of utility-scale solar-panel demand. While the bigger trend is growth, demand can ebb and flow across quarters and even years, and having the cash to ride out the swings in demand enables First Solar to continue investing capital in research and development, and in manufacturing expansion.
FSLR DATA BY YCHARTS.
As a result, the company is able to ride out market downturns while still strengthening its business, while competitors are often slashing expenses just to keep the lights on.
At recent prices, First Solar looks like a solid bargain. Shares are down about 16% this year, while the company is on track to have grown its capacity about 30% within the next couple of years. All that cash is paying off, and investors who buy at these levels should enjoy massive profits over the next decades.
(with a big tailwind for growth)
With shares up 23% year to date, Atlantica Sustainable Infrastructure might feel more like a renewable energy stock you missed out on, not one to buy right now. That's doubly the case when you look at the huge 46% gains (48% when adding in dividends) the stock has delivered since its March 23 bottom.
But it would be a big mistake to fixate on those recent gains and miss out on Atlantica's prospects to deliver steady, growing cash flow for many years to come. The company owns wind and solar power generation assets, power transmission lines, and water desalination systems -- booking steady, recurring cash flow that's highly insulated from recessions.
Atlantica owns assets in North America, Europe, and South America, and is positioned for many years of growth ahead. As an operator and developer of utility-scale systems on multiple continents, it's positioned to be a major player. But with a tiny asset base -- less than 1.5 gigawatts of capacity across 25 assets -- it's a very small player in the global market.
As a result, investors who buy shares now, while Atlantica is still a small fish, should see outsize profits as it grows much larger in the global renewables ocean. It has a dividend yield of 5.9% at recent prices, a solid portfolio of assets, and a tremendous pipeline for growth. So investors should focus not on the recent run-up in the stock price, but on the enormous growth potential Atlantica could deliver.
An innovator with a major advantage
First Solar is a leader in the utility-scale segment of the solar-panel industry. The company's thin-film technology is a competitive advantage against low-cost silicon panels; they operate more reliably in extreme weather, and with each iteration have proven superior in generating a predictable amount of power that's close to their rated output. For utility project developers and operators, this has real value; it's why First Solar is consistently one of the biggest sellers of panels for utility-scale projects, particularly in North America.
But its technology isn't the company's only advantage. First Solar carries more than $1 billion in net cash, and has consistently carried about $1 billion more cash than debt on its balance sheet for almost a decade. This cash buffer has done wonders to help it ride out the highly cyclical nature of utility-scale solar-panel demand. While the bigger trend is growth, demand can ebb and flow across quarters and even years, and having the cash to ride out the swings in demand enables First Solar to continue investing capital in research and development, and in manufacturing expansion.
FSLR DATA BY YCHARTS.
As a result, the company is able to ride out market downturns while still strengthening its business, while competitors are often slashing expenses just to keep the lights on.
At recent prices, First Solar looks like a solid bargain. Shares are down about 16% this year, while the company is on track to have grown its capacity about 30% within the next couple of years. All that cash is paying off, and investors who buy at these levels should enjoy massive profits over the next decades.
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