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3 Renewable energy stocks that can capitalize on the sustainability surge

The stage has been set for the world to transition to a green energy environment. Global economies have already taken steps to transition to clean energy. As nations prepare to meet ambitious climate change targets to address the need to reduce carbon footprints and emissions, investors are starting to hunt for renewable energy stocks to buy.

According to The Economist, investment in clean energy has increased by 40% since 2020. Based on last year’s data alone, that number could increase as countries work to meet climate goals. Result? Opportunities for investors to take advantage of the growth in this sector.

Today we’ll take a look at renewable energy stocks to buy that show revenue and earnings growth. To compile the list, I checked the following criteria:

  1. It must operate in the field of renewable energy
  2. Earnings increase by at least 10%
  3. Revenue increase by at least 10%

I then sorted the companies by highest earnings growth and presented them in descending order.

First Solar Energy (FSLR)

The first Solar logo on a smartphone in front of a computer screen with graphs.  FSLR stocks

Source: IgorGolovniov / Shutterstock.com

The continued development of solar energy as an alternative energy source has made companies such as First Solar (NASDAQ:FSLR) is an important part of the government’s plan to transition to a green economy.

The company is one of the leading manufacturers of photovoltaic (PV) cells used in the construction of CdTe solar modules, which convert sunlight into electricity, making it an invaluable element of the solar energy production chain. Growing demand for solar energy has led First Solar to acquire a facility in Ohio that serves as a distribution center, allowing it to scale production.

First Solar reported a very solid 2023. Full-year net sales increased 26.7% year-over-year (YoY), from $2.6 billion to $3.3 billion. The growth was primarily driven by higher average selling prices and module volumes. Additionally, the company reported net earnings per diluted share of $7.74, an increase of nearly 2,000% from last year’s net loss of 41 cents.

Looking ahead, First Solar expects net earnings per diluted share to be in the range of $13.00 to $14.00, nearly doubling 2023 results, and 2024 net sales of approximately $4.4-4 .6 billion dollars. Thanks to the government’s strong push to go green, FSLR has enormous potential , making it one of the best choices for renewable energy companies.

Broad Wind (BWEN)

A wind turbine appears against a bright orange and blue sky.

Source: Khanthachai C / Shutterstock.com

Wide wind (NASDAQ:BWEN) specializes in wind energy equipment, clean energy structures and clean technologies used by various sectors. The company agreed with MarketAxess Holdings (NASDAQ:MKTX) to “sell acquired Production Credits for Advanced Production”, which will help significantly improve its liquidity profile.

Broadwind’s latest results showed impressive growth for fiscal year 2023. Revenues reached $203.5 million, which was 15% higher than prior-year revenues of $176.7 million.

Net income also turned green, from a loss of 48 cents per share to a profit of 36 cents, a change of 175%. Broadwind attributes this change to a broad increase in demand in the heavy industrial and industrial solutions segments.

Despite a slight decline in orders and backlog from last year, Broadwind remains optimistic about its future prospects, especially given expectations of accelerating wind energy development in the second half of 2024.

Global beam (BEEM)

Image of an electric vehicle charging station on a dark background;  Electric Vehicle Stocks

Source: Marko Aliaksandr / Shutterstock

Global radius (NASDAQ:BEEM) is a clean technology innovator that designs advanced solutions for energy storage, electric vehicle (EV) charging and energy infrastructure.

The patented infrastructure product EV ARC (autonomous electric vehicle charger) uses integrated battery storage and solar energy as a power source for electric vehicle charging stations. The company also offers street architecture and street lighting products worldwide.

Beam Global has received patents for its products from the European Patent Office, including kerbside electric vehicle charging products and thermal management technology, underscoring its position as one of the leading innovators in clean technologies.

The company ended fiscal 2023 with record revenue of $67.4 million, up 206% from $23 million last year. Earnings for the year improved to a net loss of $1.30, an increase of 34.6% from the prior year loss of $1.99. Additionally, the company reported positive gross profit for the full year and remained debt-free with an undrawn credit line of $100 million.

Significant backlogs and contracts mean the company should have sufficient cash flow to fund its future operations.

As of the date of publication, Rick Orford did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

Rick Orford is a Wall Street Journal bestselling author, investor, influencer and mentor. His work has appeared in some of the most authoritative publications including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS and ABC News.