After The Hottest Year On Record, 3 Stock Ideas That Are Green For The Planet
Last year was the hottest on record, with data released by NASA last week showing that 2020 was even a little hotter than 2016, the previous record-setting year.
Why It Matters: The renewable power sector soared in 2020 as investors and the general world population have become more environmentally aware.
The following are three popular examples of renewable energy — and a stock to watch in each sector.
Hydroelectric: Brookfield Renewable Partners (NYSE:BEP) has a solid revenue stream. Its end user public power authority and utility customers have agreements with an average of 14 years remaining. Brookfield's share price has steadily climbed over the last six months as investors see the value in the company's mission as well as its business model, which makes it a safe play in the event of a recession.
Wind Power: General Electric Co. (NYSE:GE) shares are up 93% since October, but still trade at a discount compared to some peers. General Electric is one of the world's leading wind turbine suppliers.
General Electric's international deals promise further growth for investors.
In December, GE announced a contract to supply wind turbines to Vietnam.
Solar Power: Canadian Solar Company (NYSE:CSIQ) has seen its share price more than double since last summer. On Jan. 14, Canadian Solar announced the divestiture of the slate project through its subsidiary Recurrent Energy to California. Iinstallations are expected to double in the U.S. in 2021, according to CEO Dr. Shawn Qu.
What's Next: In 2019, renewable energy accounted for just 19% of power generation in the United States.
The EIA expects this to climb to 21% in 2021 and 23% in 2022. Although the sector has seen a huge move recently, there is certainly room to grow. President Joe Biden, with Democrats in control of Congress, also want to make sure this happens, with Biden set to rejoin the Paris Climate Accords and put and end to the controversial Keystone Pipeline.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.