HomeMarket NewsThe Renewables Renaissance: A Glance at Prime Investments

The Renewables Renaissance: A Glance at Prime Investments

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Unveiling NexGen Energy (NXE)

As the world continues its fight for sustainability, the allure of investing in renewable energy projects becomes even more palpable. The International Energy Agency projects renewable sources will account for over 42% of global electricity generation, with wind and solar power expected to double to 25% alone. Furthermore, with 116 countries signing the Global Renewables and Energy Efficiency Pledge, the stage is set for exponential growth in the sector. Amidst this backdrop, NexGen Energy (NYSE: NXE) emerges as a compelling choice.

With uranium prices soaring due to supply-demand discrepancies, NexGen Energy presents an opportune moment for investors. The company, after a brief overbought spell priced at $8.75, now hovers around $8.33, potentially gearing up to revisit support levels at its 50-day moving average. Nestled in a landscape where uranium demand is projected to spike by 127% by 2030 and potentially doubling again by 2040, NexGen is positioned as a long-term growth driver.

Noteworthy is their recent uranium discovery at the SW2 Property, elating company CEO Leigh Curyer. Reflecting on the findings, Curyer expressed optimism, stating, β€œDrilling activity is being fully dedicated to this new discovery area to advance our understanding of scope and scale of mineralization.” As eager as one may be to dive in, prudence dictates waiting for a pullback before delving into the world of NexGen Energy.

Exploring Brookfield Renewable Energy (BEP)

Amidst the recent turbulence in the market, one can find solace in Brookfield Renewable Energy (NYSE: BEP). With a current yield of 6.13% and a payout of 35.5 cents per share, Brookfield offers a promising investment opportunity for those who dare to tread water until the company regains momentum.

What further adds to the charm of Brookfield is their sustainable dividend policy, underpinned by predictable cash flows. A substantial 90% of its cash flow is secured through long-term, inflation-adjusted agreements. Beyond the numbers, Brookfield’s CEO, Connor Teskey, paints a rosy picture for the company’s future, fueled by the increasing demand for clean power, particularly from global tech giants.

Boasting solid financials, with earnings surpassing expectations in the recent quarter, Brookfield continues to show resilience. Recording a funds from operations figure of 38 cents and revenue climbing nearly 11% year over year to $1.32 billion, the company is on a trajectory towards sustainable growth.

The Allure of Invesco Global Clean Energy ETF (PBD)

For those looking to diversify their renewable energy portfolio, the Invesco Global Clean Energy ETF (NYSEARCA: PBD) beckons. With an expense ratio of 0.75%, this ETF offers a gateway into a pool of stocks focused on renewable energy sources and cleaner energy technologies.

Featuring a diverse range of holdings including Sunrun (NASDAQ: RUN), Sunnova Energy (NYSE: NOVA), Enphase Energy (NASDAQ: ENPH), and FuelCell Energy (NASDAQ: FCEL), amongst others, the PBD ETF provides exposure to 108 green stocks at an affordable price point. As we anticipate potential rate cuts by the Federal Reserve, the allure of the PBD ETF rallying back to its former glory at $65 entices investors.

As we navigate the murky waters of the investment landscape, the path to green energy presents itself as a beacon of resilience and promise. The renewable energy sector stands as a testament to human ingenuity and commitment to a sustainable future.

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