Climate change has pushed investors to seek purpose beyond returns
- Taking advantage of these renewable energy stocks while there is a lot of room for growth can boost your portfolio’s returns.
- Broadwind Inc. (BWEN): One of the leaders in renewable energy infrastructure manufacturing.
- Green Plains Inc. (GPRE): A leading biorefining company that operates as a producer and commodity market participant.
- REX American Resources (REX): REX’s upcoming earnings release has set the stage for strong profitability.
Energy consumption has grown steadily over the last few decades. Companies and industry experts question whether the latest energy production methods are efficient and environmentally sound. This gave rise to the need for alternative solutions like renewable energy.
Climate change awareness, sustainability initiatives and government transitions have further boosted demand. This has made renewable energy companies more viable investments. Their pivotal role in developing and providing alternative energy solutions has also caught the eye of ESG investors. These environmentally-conscious investors take ethical and climate-conscious companies seriously. These three companies are some of the best to invest in if you are looking for renewable energy stocks to buy.
Broadwind Inc. (BWEN)
Broadwind Inc. (NASDAQ:BWEN) manufactures clean technology and specialized applications. The company offers technologically advanced products to US energy, mining and infrastructure customers. Its services include building complexes, precision fabrications, gearing and gearboxes, supply chain solutions and light fabrication. The company is also an OEM manufacturer of various clean-energy solutions like solar arrays, wind turbine towers and solar trees in various states.
Broadwind’s latest results showcased an impressive year-over-year (YoY) growth, with revenue reaching $57.20 million, $12.3 million more than Q2 2022. GAAP net income reached $4.40 million this quarter, significantly improving from its net loss YoY. The company’s non-GAAP adjusted EBITDA also substantially increased by $5.70 million. Its total backlog revenue increased by $88.6 million, ending at $220.8 million. This growth is mostly due to the Industrial Solutions and Heavy Fabrications segments. Broadwind’s strong financial performance, growth in key segments, and strategic focus on being in a market-leading market position make it a strong candidate for long-term investors looking for renewable energy stocks to buy.
Green Plains Inc. (GPRE)
Green Plains Inc. (NASDAQ:GPRE) is one of the leading biorefining companies in the U.S., specializing in biological technologies and agricultural and fermentation processes to generate renewable crops into sustainable value-added ingredients. Green Plains produces ethanol, protein and renewable corn oil and distillers grains as part of its renewable energy operations. The company also has a commodity marketing business that sells and distributes ethanol products from its plants. Green Plains offers partnerships with other firms that provide fuel storage and transportation.
GPRE’s latest report showed significant improvement in its net income attributable to the company, reaching $22.3 million from the previous YoY quarter net loss of $73.5 million. According to its filings, this is due to its consistent operations and plant utilization rate of 93.9%. The company maintained a strong outlook for the next fiscal quarter with solid production operating rates and expanding Ultra-High Protein sales. It has generated a growing customer interest globally with its successfully executed protein production runs of 60%. This was a highly emphasized achievement by its CEO, Todd Becker, as the company hit a new record in production volume and sales for Ultra-High Protein. Its strong management and solid financial performance make GPRE one of our list of top renewable energy companies.
REX American Resources (REX)
The last one on our list is REX American Resources (NYSE:REX), a holdings company operating as an ethanol and by-products producer. Its operations focus on non-food grade corn oil, corn, distillers grains, ethanol and natural gas. The company ships approximately 691 million gallons of ethanol from its six production facilities. Its operations are done through subsidiaries comprising assets in 25 states with an annual capacity of roughly 17.9 billion gallons of ethanol. REX is one of the leading U.S. producers of ethanol today.
REX American Resources is set to publish its next earnings release on December 7, 2023. Its latest financials show that despite its decrease in net sales, the company’s resiliency to the changing market dynamics increased its gross profit by 30.1%, which makes it an attractive renewable energy stock to buy. It boasts strong management and emphasizes its commitment to sustainability by reducing greenhouse gas emissions with its ongoing carbon capture projects. REX might be one of the compelling options for renewable energy stocks with its strategic positioning within the alternative energy sector, diversification in ethanol production, strategic investments, and sustainability initiatives.
This post originally appeared at InvestorPlace.
On the date of publication, Rick Orford 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.
