In addition to solar and wind energy companies, the cleantech industry includes a wide range of companies that are into agriculture, transportation, and more. As increasing awareness about climate change is narrowing the gap between knowledge and response, the focus on cleantech stocks or “green technology” has been increasing. This is evident from the Invesco Cleantech ETF (PZD) 20.4% year-to-date return, versus the S&P 500’s 6.6% gain over the same period.
In the United States, there has been a significant change in the awareness about climate change over the past five years. Among the Global Warming’s Six Americas, the Alarmed segment has more than doubled in size (from 11% to 26%) over this period. Moreover, the alternative energy is gradually becoming cheaper with the advancement of storage technology. So, irrespective of the initiative of the next US president, the shift toward clean energy should accelerate over time.
While many companies are entering this about-to-boom industry, NIO Inc. (NIO), NextEra Energy, Inc. (NEE), Enphase Energy, Inc. (ENPH), and First Solar, Inc. (FSLR) are expected to perform pretty well based on their strategies and cutting-edge technologies.
NIO Inc. (NIO)
Often touted as the “Tesla of China,” China-based NIO is a young emerging player in the Electrical Vehicles (EV) market. Not only China, but also operating in Hong Kong, the United States, United Kingdom, and Germany, NIO sells EVs under the EP9, EVE, and ES8 brand names. It is also known for its Battery-as-a-Service (BaaS) solution. With the Chinese economy recovering much faster, and an increasing shift to EVs, the stock gained more than 838% year-to-date. It is currently trading 5.4% below its 52-week high.
NIO’s total revenues increased 146.5% year-over-year to $526.4 million for the second quarter that ended June 2020. Vehicles sales increased 146.5% year-over-year to $493.4 million. The company delivered 5,055 vehicles in October, increasing by 100.1% year-over-year. Analysts expect NIO’s revenue to increase 147% for the about-to-be-reported quarter and 79.3% next year. The company’s EPS is expected to increase 92.9% for the quarter that ended September 2020, 52% this year, and 33.3% next year. NIO’s earnings surprise history looks impressive with the company missing the consensus estimate in just one of the trailing four quarters.
NIO launched a new charging service plan in September named Power Up Plan at Auto China 2020. The company won the bid for the Chinese annual government procurement project in Beijing for 2020 to 2022. Owing to robust growth in vehicle deliveries, NIO is one of Wall Street’s favorite EV stocks.
How does NIO stack up for the POWR Ratings?
A for Trade Grade
A for Buy & Hold Grade
A for Peer Grade
A for Industry Rank
A for Overall POWR Rating
You can’t ask for better. The stock is also ranked #3 out of 115 stocks in the China industry.
NextEra Energy, Inc. (NEE)
Headquartered in Juno Beach, Florida, NEE is the world’s largest producer of wind and solar energy. Bringing in the dawn of a new era, the company has 45,500 Megawatts of net generating capacity. As a fortune 200 company, it operates through its subsidiaries NextEra Energy Resources, Florida Power & Light Company (FPL), NextEra Energy Services, and NextEra Energy Transmission.
NEE delivered strong results for the third quarter that ended September 2020. EPS increased 11% year-over-year to $2.66. Net income increased 10.8% year-over-year to $757 million. NextEra Energy Resources had a record quarter of…
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