Traditional fuel companies have taken a major hit in stock price due to escalating tensions and trade wars between the Middle East and the U.S. Alternative fuels continue to gain traction with biodegradable methods of production and consumption, and investors are taking note.
Do your part to reduce the global carbon footprint and make sustainable living possible with an investment in alternative fuel stocks.
Highlighted Alternative Fuel Stocks:
- Highlighted Alternative Fuel Stocks:
- Overview: Alternative Fuel Stocks
- Best Online Brokers for Alternative Fuel Stock
- Features to Look for in Alternative Fuel Stock
- Alternative Fuel Stocks to Watch Out for This Year
- Biggest Alternative Fuel Movers of the Day
- Decrease Carbon Footprint, Increase Your Returns
Overview: Alternative Fuel Stocks
Alternative fuels are derived from renewable energy sources. Companies that produce alternative fuels domestically have reduced the volume of imported oil and natural gas. These production processes create a smaller carbon footprint than refined gasoline and diesel.
There are many types of alternative fuel companies. These companies generate power from different sources such as:
- Ethanol: fuel is produced from corn and other crops
- Electricity: energy is produced from solar, wind and hydro power plants
- Biodiesel: fuel is derived from vegetable oils and animal fats
You can research alternative fuels on the Alternative Fuels Data Center (AFDC). The U.S. Department of Energy launched the AFDC in 1991 in response to the Alternative Motor Fuels Act of 1988 and the Clean Air Act Amendments of 1990. It has since become an indispensable resource for fleet managers, fuel providers, policymakers and clean city coalitions.
Solar energy producers also work tirelessly to improve the efficiency of batteries while reducing greenhouse gas emissions. The rising demand for alternative fuels has been critical to the explosive growth of companies like Ellomay Capital (AMEX: ELLO). It reported more than $21 million in revenue in 2018 and 2019, making it 1 of the best stocks under $20 to invest in.
Best Online Brokers for Alternative Fuel Stock
Online brokers are packed with professional tools to improve your trading tactics. For example, you can set the price range in the stock screener to show you all the stocks under $5 to quickly find penny stocks that are worth investing.
Here are our top recommendations of online brokers to get you started.
Features to Look for in Alternative Fuel Stock
- Profitable earnings per share. Take a closer look at the earnings per share (EPS) of a company over each quarter. A steady increase in the EPS reports can indicate that the alternative fuel stock is performing well in the market.
- Undervalued stocks with a low price-earnings ratio. Alternative fuel stocks under $10 tend to have the lowest price-earnings (P/E) ratios from the energy industry.
- Planned solar projects and power plants. Alternative fuel companies are constantly creating a buzz in the market by announcing up and coming solar plant installations and power supply agreements. These press releases are usually followed by an increase in the stock value of alternative fuel firms.
Alternative Fuel Stocks to Watch Out for This Year
Check out these alternative fuel stocks that are making news.
Enphase Energy Inc. (NASDAQ: ENPH)
Enphase Energy is a technology solution provider that makes clean energy affordable and accessible to its customers. It has facilities in more than 20 countries and has shipped over 27 million solar inverters to date.
The solar stock has a market cap of $6.6 billion and high liquidity with more than 5.9 million shares traded per day. It has an EPS of $1.69 and a P/E ratio of 31.22. Enphase Energy generated total revenue of $624 million in 2019.
In June 2020, Same Sun of Vermont announced that it has deployed Enphase micro-inverters on a commercial solar system for WhistlePig Rye Whiskey, a Vermont-based craft whiskey maker. In the same month, Excel Power, a leading commercial and residential solar company in Australia, announced that it is leveraging Enphase micro-inverters to build a growing base of clean energy customers.
Ormat Technologies Inc. (NYSE: ORA)
Headquartered in Reno, Nevada, Ormat is a leading company engaged in geothermal and recovered energy generation. It has global operations in the U.S., Guatemala, Honduras, Indonesia and Kenya.
The geothermal stock has a market cap of $3.5 billion and trades more than 300,000 shares per day. It has an EPS of $1.71 and a P/E ratio of 40.29. Ormat Technologies has an annual dividend yield of 0.64%. It generated total revenue of $746 million in 2019.
Earlier this year, Ormat Technologies announced the signing of 2 similar Power Purchase Agreements (PPA) with Silicon Valley Clean Energy (SVCE) and Monterey Bay Community Power (MBCP). Under the PPAs, SVCE and MBCP will each purchase 7MW of power generated by the geothermal project located in Mammoth Lakes, California. The PPAs are for a term of 10 years.
SolarEdge Technologies Inc. (NASDAQ: SEDG)
Established in 2006, SolarEdge Technologies is a global leader in smart energy solutions that power lives and drive future progress. It has deployed more than 1.3 million monitored solar systems in 130 countries.
The solar stock has a market cap of $7.5 billion and trades more than 1 million shares per day. It has an EPS of $3.36 and has a P/E ratio of 45.57. SolarEdge Technologies generated total revenue of $1.4 billion in 2019.
In February 2020, SolarEdge Technologies announced that its award-winning single phase inverter with HD-Wave technology received Japan Electrical Safety and Environment Technology Laboratory (JET) certification. Specifically designed to comply with Japanese market requirements, the inverter is now available for low-voltage commercial and residential photovoltaic (PV) installations.
The company also announced that it entered into a contract to supply smart energy products and solutions, including inverters and power optimizers for 1 GW of solar projects with the international solar investor Enfindus. The 4-year agreement is intended for commercial and industrial rooftop PV systems.
NextEra Energy Inc. (NYSE: NEE)
Headquartered in Juno Beach, Florida, NextEra Energy is a leading clean energy company. It owns and operates 2 companies – Florida Power & Light Company and Gulf Power Company. NextEra Energy has $50 billion worth of planned investments in American infrastructure through 2022.
The company stock has a market cap of $121 billion and trades over 3 million shares per day. It has an EPS of $7.22 and a P/E ratio of 34.37. NextEra Energy has an annual dividend yield of 2.25%. It generated total revenue of $19 billion in 2019.
NextEra Energy recently declared a quarterly cash dividend of $1.40 per share to its shareholders. Earlier this year, the company announced that it has been recognized once again as 1 of the World’s Most Ethical Companies® by Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices.
Renewable Energy Group Inc. (NASDAQ: REGI)
Renewable Energy is a company committed to sustainability and transforming renewable resources into high-quality cleaner fuels. It operates 14 biorefineries in the U.S. and Europe.
The clean energy stock has a market cap of $1.1 billion and trades over 600,000 shares per day. It has an EPS of $11.17 and a P/E ratio of 2.54. Renewable Energy generated total revenue of $2.6 billion in 2019.
In January 2020, Renewable Energy Group and Phillips 66 announced it will discontinue joint efforts to construct a large-scale renewable diesel plant in Ferndale, Washington. This 250 million-gallon-per-year project would have resulted in the largest renewable diesel refinery on the West Coast.
Biggest Alternative Fuel Movers of the Day
Get the latest updates on price movements from alternative fuel stocks today.
You can have a look at these premarket movers to trade stocks before trading sessions open.
Decrease Carbon Footprint, Increase Your Returns
The increasing awareness of climate change and global warming has caused many clean energy companies to sprout all over the world. Make smarter investment choices by backing alternative fuel companies that can earn you good returns in the long run.
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