Top 4 Alternative Energy Stocks as of October 2017 – TheTradersWire

Top 4 Alternative Energy Stocks as of October 2017


Top 4 Alternative Energy Stocks as of October 2017

By Kevin Johnston | Updated October 12, 2017 — 6:45 PM EDT

With concerns about climate change and the state of the environment continuing to draw headlines, there is no doubt that the markets are also paying attention to clean and renewable energy resources. As oil prices rise from their recent lows, traditional energy companies will no doubt dominate the energy sector, but alternative energy is here to stay. The alternative energy companies on this list have the potential to make investors some money in 2017.

The stock charts on each of these companies show positive developments that could create upward momentum for the remainder of the year. All figures are current as of Oct. 12, 2017. (See also: Why You Should Invest in Green Energy Right Now.)

NRG Yield, Inc. (NYLD)

NRG Yield is not a pure alternative energy play, but it does own and operate renewable energy assets. The company was founded in 2012. This stock has been forming an upward price channel since February 2017. The shares are up over 20% year to date, and the company has consistently beat earnings estimates in recent quarters. Based in Princeton, New Jersey, NRG Yield is a subsidiary of NRG Energy, Inc. (NRG).

Pattern Energy Group Inc. (PEGI)

This San Francisco-based company owns wind energy projects. It makes its living selling energy to local utility companies. Projects are in the United States, Canada and Chile. The stock was rising throughout most of 2017, but it saw declines in August and again in late September. At current levels, the stock offers an attractive dividend yield of 6.82%. (For more, see: Clean or Green Technology Investing.)

  • Average Volume: 670,260
  • Market Cap: $2.15 billion
  • P/E Ratio (TTM): 71.22
  • EPS (TTM): $0.34
  • Dividend and Yield: $1.68 (6.82%)

Atlantica Yield PLC (ABY)

Atlantica owns renewable energy generation assets. It generates power through solar and wind technology. Revenues have shown solid gains for four straight years, and operating income has grown dramatically during that period. Buyers stepped in during early 2017 and bought shares, giving the stock a high-volume breakout. At the same time, the 50-day moving average crossed above the 200-day moving average. This is called a “golden cross” and is considered bullish by investors. While the price action has been volatile throughout the year, the stock has consistently found support at around $19, and its dividend yield of over 5% could be appealing to income investors. (See also: Atlantica Yield Posts Narrower-than-Expected Q1 Loss.)

  • Average Volume: 461,716
  • Market Cap: $2.08 billion
  • P/E Ratio (TTM): 67.10
  • EPS (TTM): $0.31
  • Dividend and Yield: $1.04 (5.05%)

Covanta Holding Corporation (CVA)

Covanta Holding provides waste services to cities in the United States and Canada. The company has developed assets that convert waste to energy. CVA owns 45 plants that are involved in converting waste, and the company sells metal that is a byproduct of the waste-conversion process. Daily volatility for this stock can be high, so this is one to buy only for those who are willing to ride out some dramatic moves in the stock price. Similar to several other stocks on this list, Covanta may be enticing to those investors seeking dividend yield.

  • Average Volume: 1,115,878
  • Market Cap: $2.01 billion
  • P/E Ratio (TTM): -73.33
  • EPS (TTM): -$0.21
  • Dividend and Yield: $1.00 (6.60%)

The Bottom Line

Alternative energy is mainstream enough now that investors can find companies that are extremely viable. Our list has one penny stock, but all the companies have a track record of securing contracts for their products and services. Nevertheless, the companies are relatively small compared with the giants of the energy sector, so they are subject to being nudged out of the competition. Owning alternative energy stocks means staying abreast of news in the field. (For more on alternative energy, check out: Top 5 Alternative Energy ETFs.)


Published at Thu, 12 Oct 2017 22:45:00 +0000

About the author


Online resource for daily updates and information relating to investing stocks, bonds, forex, real estate and much more.