FX.co ★ Top 5 promising green stocks

First Solar Inc.

First Solar Inc., America’s biggest solar panel manufacturer, takes a lead in our rating. However, the firm has not been doing well lately. In the fourth quarter of 2022, the company's earnings per share are expected to dip by $0.17 compared to the previous reading of $1.23. In addition, the solar panel producer reported a loss of $68 million in the third quarter of 2022. The drop came due to prolonged disruptions in supply chains. Nevertheless, the situation is stabilizing. Over the past 12 months, the company's value rose by 126.1% per share. Moreover, the solar panel manufacturer has started the new year on a positive note: its shares have gained 20.7% and are still on the rise. First Solar Inc. is predicted to become one of the biggest beneficiaries of green energy. Deutsche Bank analysts give First Solar Inc. a positive outlook and note that the company is loaded with orders until the end of 2025. They say that the firm will maintain growth owing to high demand for integrated modules. In November 2022, First Solar announced a $1 billion investment to build a solar panel plant in Alabama, US, as part of a project to increase the company's production capacity up to 10 gigawatts. The construction of this plant is scheduled for 2025.

Array Technologies

Array Technologies Inc. is the second promising green company in our list. Situated in the state of New Mexico, US, the firm develops and produces ground-based solar monitoring systems. Array Technologies shares are believed to be an attractive investment option. After a long-lasting decline in price, the company’s share value skyrocketed when Piper Sandler economists raised its rating from neutral to high. They now see the firm’s stock price up by 20.4% to $28. Moreover, they say Array Technologies has great growth potential. Analysts estimate Array Technologies' order book at $1.9 billion. The firm has sustained a balance between received and completed orders, which could help boost revenues as well as earnings before interest, taxes, depreciation, and amortization (EBITDA) in fiscal 2023. Two years ago, the IPO pricing valued Array Technologies at about $2.79 billion. However, in the course of a rally, its value doubled to $5 billion. The company’s current market capitalization has decreased slightly to $3.5 billion. Meanwhile, its 12-month earnings have reached 111.2%.

Enphase Energy Inc.

Enphase Energy Inc., an American developer and manufacturer of household energy-saving technologies for the solar photovoltaic industry, is the third potentially prosperous firm in our rating. The company has a positive earnings consensus for the coming quarter with its share price at $0.93. That is almost twice as much from the same quarter last year when its value was $0.47 per share. In the long term, Enphase Energy Inc. shows staggering performance, with annual earnings of 25%. Still, experts warn of a correction in the stock price. At the same time, the company’s steady growth is seen as a hedge against negative effects. According to a consensus forecast, the firm may record growth of 70.8% ($704.92 billion) year-on-year in the current quarter. In addition, unlike other companies in the solar energy industry, Enphase Energy Inc. may see a significant increase in profits in 2023. Enphase Energy Inc. currently has a 17% return on equity (15% industry average), a $31.1 billion market capitalization, and a 78.3% return in 12 months.

Bloom Energy Corporation

The fourth promising company is Bloom Energy Corporation. The firm manufactures and sells solid oxide fuel cell systems in the United States and worldwide. Bloom Energy Corporation’s consensus forecast for the current quarter is $0.01 per share. Bloom Energy stock is the most suitable option for investing in clean energy. In the third quarter of 2022, Bloom Energy Corporation reported a record gain of $292.3 million in revenue, up by 41% from the same period in the previous year. The list of drivers for Bloom Energy Corporation’s share price in 2023 includes economic expansion, focus on distributed power generation (e.g. fuel cell production), network bandwidth limitation, and tax subsidies for hydrogen. Currently, the company has a market capitalization of $5.2 billion and a 12-month return of 62.3%.

NextEra Energy Inc.

NextEra Energy Inc. rounds out the top 5 promising green stocks. The company and its subsidiaries generate, distribute, and sell electricity to retail and wholesale customers in North America. Based on the consensus forecast for NextEra Energy Inc. for the current quarter, its earnings per share will be $0.49, up from $0.41 in the same period last year. Although the firm is somewhat lagging behind its competitors, NextEra Energy Inc. keeps afloat owing to a diversified portfolio of assets. NextEra Energy Inc. is recognized as one of the best green energy companies in the industry, ensuring the security of stock and guaranteeing stable dividends. Experts argue that firms like NextEra Energy Inc. perform well even when economic growth slows. The market capitalization of this leading electricity producer totals $164.3 billion, and the yield for 12 months reaches 0.9%.