As the world continues to reduce its reliance on fossil fuels, companies specializing in wind, solar, hydrogen and other renewables are set to capitalize on this surging demand. The transition will be met by government support from policies such as the Inflation Reduction Act. It plans to commit approximately $369 billion to renewable energy projects, pollution reduction, and environmental justice.
Furthermore, a more dovish Federal Reserve could further bolster risk appetite and investments in infrastructure and clean energy. Investors seeking both strong returns and a positive environmental impact can benefit from the long-term potential upside of the renewable energy sector.
Now, let’s discover the top 3 renewable energy stocks promising powerful profits in 2024 and beyond!
Linde (LIN)
Linde (NYSE:LIN), a global industrial gas giant, is well-positioned to capitalize on the growing hydrogen economy. The company’s expertise in hydrogen production, storage, and distribution makes it a frontrunner in this emerging market.
Linde’s recent investments in hydrogen infrastructure highlight its commitment to this market. It has not shied away from the sector, even despite the increased operating costs to fund these multi-billion dollar projects. Additionally, what makes Linde a standout investment in renewable energy is that it is not reliant on hydrogen-like many of its competitors.
So, if its long-term bets on the hydrogen economy don’t pay off, it will do just fine, as compared to players like Plug Power (NASDAQ:PLUG). Despite top-line growth remaining flat in FY23, the company saw significant operating margin and profit expansion. Furthermore, earnings per share increased 10% year over year in Q1 FY24. Linde’s established presence and technological capabilities will drive approximately 8-10% EPS growth in FY24. This makes LIN stock one of the top renewable energy stocks to snap up before the next leg higher
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) stands out as one of the top renewable energy stocks poised for significant profits in 2024. Its extensive investments in renewable energy infrastructure solidify its status as a leader in the sector.
NextEra stock is off to an incredible start in 2024 after coming off a record year in revenue and profits in 2023. The company continues to make strategic investments in solar and energy storage, expanding on its robust backlog of projects. Its wholly owned subsidiaries FPL and NextEra Energy Resources, remain focused on executing its long-term financial plans. In Q1 FY24, revenue decreased 15% year over year to $5.72 billion.
Net earnings increased 9% year over year to $2.27 billion, or $1.10 per share. FPL added 1,640 megawatts of new solar to service, while NextEra Energy Resources added 2,765 new megawatts of new renewables and storage capacity to its backlog. Moreover, management anticipates approximately 10% dividend growth through 2026. If you’re looking for renewable energy stocks with exceptional leadership, NEE stock should certainly be kept on your radar.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) has firmly established itself as a leader in renewable energy, promising powerful profits for discerning investors in 2024. The company’s exceptional financial results and AI growth prospects have Wall Street excited.
What makes First Solar stand out from its competitors is its growing revenue and earnings. Management has done a great job allocating capital to new projects, as well as cutting back on high operating expenses. This has been its secret strategy, as demand for its products skyrockets due to the proliferation of AI data centers. In the first quarter of 2024, revenue increased 45% year over year to $794 million.
Net income ballooned 456% year over year to $236.7 million, or $2.20 per share. In 2023, the company committed $1.1 billion to build its fifth manufacturing facility in the United States. With plans to reach 25 GW of nameplate capacity by 2026, FSLR stock is among the elite renewable energy stocks to buy in June.
On the date of publication, Terel Miles 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.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.