One reason 2024 could be a big year for these stocks is the renaissance of nuclear energy, which has entered back into public awareness recently. Some analysts expect that nuclear energy will play a crucial part in the world’s transition away from thermal coal burning. It is extremely efficient in converting raw materials into power. Relying on solar, wind, hydroelectric, and other forms may not be enough to satisfy the world’s energy needs. So, alternatives like nuclear energy must be explored.
Therefore, investors can take advantage of this energy transition. Let’s delve into the three best renewable energy stocks for 2024 and beyond.
Cameco (CCJ)
Cameco (NYSE:CCJ) is one of the world’s largest uranium producers. The company primarily mines and sells uranium concentrate, which is used in nuclear reactions.
Notably, the present definition of nuclear “renewable energy” fails to meet its key definitional criteria. Uranium is finite in nature and unable to replenish. However, indications suggest nuclear energy could one day become as renewable as hydroelectric as we venture into extracting uranium from seawater.
Chinese scientists have already started to extract uranium from seawater. So, expect this trend to continue, although CCJ does not get its uranium from seawater. Still, I expect that in the future, this could be a possibility. It is one of the world’s largest producers of it, which has an ever-increasing demand.
Wall Street rates CCJ as a strong buy, with 26.70% implied upside for its stock price.
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is one of the largest renewable energy companies worldwide, particularly known for its wind and solar energy projects.
NEE might please momentum investors since it boasts a robust performance in 2023, with its adjusted EPS rising by 9% compared to the previous year. Also, management guided that EPS would increase between 2% and 8% for FY2024, along with a 10% dividend raise.
Additionally, NEE’s dividend of 3.20% is already strong for a company that’s still growing. It’s only slightly below the median yield of a Dividend Aristocrat. The latter are typically more mature businesses than NEE with less speculative growth possibilities.
NextEra Energy is down 22.08% for the past year, so there could be ample opportunities for it to recover lost ground and give gains to newer investors.
Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) specializes in solar energy, focusing on the production of home energy solutions like solar panels and batteries.
This company has the largest implied upside out of any of the stocks on this list, which stands at 59.37%. Also, this upside comes with an analyst consensus rating of “buy.”
Also, ENPH is my slightly contrarian pick. Its share price dropped 22% due to concerns about the solar industry, particularly the slowdown in installations. However, high interest rates and high inflation in Europe are cited as the main culprits.
The above factors are cyclical and not reflective of ENPH’s long-term potential as a business. Therefore, I see the 22% as a buying opportunity as opposed to catalyzing a bear case against the business. This means that it could be a prime candidate for recovery.
The EPS for ENPH is expected to surge 44.47% in FY2025, so analysts also remain bullish despite these short-term setbacks.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.