- Blink Charging (BLNK): Delivered impressive top-line growth thanks to brand recognition for its EV charging technology
- Brookfield Renewable Partners LP (BEP): Has a formidable development pipeline of renewable energy projects that’s three times its current operational capacity
- Clearway Energy (CWEN): Generates an attractive 3.8% dividend yield, appealing to passive income seekers
After oil and natural gas prices spiked on Russia’s invasion of Ukraine, renewable energy stocks also saw a significant jump. The war highlighted Europe’s dependence on Russian oil, emphasizing the importance of diversified energy sources.
In other words, recent events make the case for focusing on alternative energy sources even more compelling. Moreover, the sharp increase in oil and natural gas prices provides a robust argument for accelerating the development of renewable energy capacity on a global scale.
According to a recent International Energy Association (IEA) report, global renewable electricity capacity is forecast to rise more than 60% from 2020 levels by 2026. Alternatives are set to account for almost 95% of the increase in global power capacity through 2026.
With that in mind, here are three renewable energy stocks that could generate lucrative returns for investors looking to capitalize on the growing clean energy trend.
| BLNK | Blink Charging | $26.69 |
| BEP | Brookfield Renewable Partners LP | $41.21 |
| CWEN | Clearway Energy | $35.70 |
Blink Charging (BLNK)
Our first stock, Blink Charging (NASDAQ:BLNK) operates electric vehicle (EV) charging equipment and networked EV charging services. It offers over 30,000 charging ports in more than a dozen countries.
Blink Charging released fourth-quarter 2021 results on March 10. Revenue increased 224% year-over-year (YOY) to a record $7.95 million. Net loss widened to $19 million, or 45 cents per share, compared to $7.9 million in the prior-year quarter. Cash and equivalents ended the period at $175 million.
Management attributes its impressive top-line growth to increasing brand recognition for its EV charging technology. Blink sold 3,733 charging stations during the quarter, representing a 253% YOY increase.
In addition, services revenue increased 471% YOY. Management continues to grow its charger network with new partners and overseas expansion as well.
As with most long-term growth stories, BLNK is a volatile stock. It’s down almost 40% over the past year. Shares are trading at 54.7 times trailing sales. The 12-month median price forecast for BLNK stock is $29.50.
Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners (NYSE:BEP) operates one of the world’s largest pure-play renewable power platforms. Its portfolio consists of hydroelectric, wind and solar energy, plus storage facilities.
Brookfield released Q4 2021 results on Feb. 4. Revenue increased 15% YOY to $1.1 billion. Funds from operations (FFO) increased 6.5% YOY to $214 million, generating a record FFO per unit of 33 cents. Cash and equivalents ended the period at $764 million.
The company ended 2021 with an operational capacity of 21 gigawatts. In addition, it has an enormous development pipeline of 62 gigawatts. Hydroelectric power accounts for more than half of its revenue. Meanwhile, solar and wind power are expected see further growth in the coming years.
BEP stock currently offers a generous 3.1% dividend yield. Management targets sustained 12% to 15% returns annually, as well as a yearly distribution growth of 5% to 9%.
This renewable energy stock is up nearly 14% so far in 2022. Shares are trading at 2.7 times trailing sales. Meanwhile, the 12-month median price forecast for BEP stock stands at $68.
Clearway Energy (CWEN)
Our next stock, Clearway Energy (NYSE:CWEN), operates renewable and conventional energy assets. The group generates revenue from sales to local utilities under long-term, fixed-price agreements.
Clearway released Q4 2021 results on Feb. 28. Net loss came in at $56 million, down from $73 million a year ago. Cash and equivalents ended the period at $654 million.
The alternative energy name has the opportunity to develop 19.1 gigawatts of renewable energy projects through 2025. Clearway invested $820 million to expand its portfolio last year. Meanwhile, management is selling the thermal business for $1.9 billion, resulting in cash proceeds of $1.3 billion.
CWEN stock currently generates an attractive 3.8% dividend yield, perfect for investors looking for passive income. Management targets annual dividend growth of 5% to 8% through 2026.
The alternative energy stock has returned 27% over the past year. Shares are trading at 38.3 times forward earnings and 3.4 times trailing sales. Finally, the 12-month median price forecast for CWEN stock is at $39.50.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.