3 Best Wind Energy Stocks To Add To Your List

March 15, 2022

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By MarketBeat. Originally published at ValueWalk.

Total annual U.S. electricity generation from wind energy increased from about six billion kilowatt-hours (kWh) in 2000 to about 338 billion kWh in 2020, according to the U.S. Energy Information Administration (EIA). Wind turbines were the source of about 8.4% of total U.S. utility-scale electricity generation in 2020. Utility-scale means that it includes facilities with at least one megawatt (1,000 kilowatts) of electricity generation capacity.

Q4 2021 hedge fund letters, conferences and more

The Global Wind Energy Council (GWEC) market intelligence predicts that annual installations will top 20 GW in 2026 and could reach 40 GW in 2030.

We’ll cover why you might want to pursue wind energy stocks and three stocks to consider adding to your portfolio.

Why Wind Energy Stocks?

Why invest in wind energy? To get to net-zero carbon, up to 70% of global electricity generation by 2050 needs to come from wind and solar. Wind already provides 7% of the world’s electricity, according to IHS Markit.

Last year was the second-best year for offshore wind installations. A total of 6.1 GW were installed globally, with nearly half that in Chinese waters (3 GW), the Global Wind Energy Council (GWEC) GWEC’s annual state of the industry report said.

Governments across the world continue to raise their ambition levels with regard to wind energy, according to GWEC. Progress continued in commercialization and industrialization continues for floating wind offshore wind which and cross-industry cooperation and decarbonization.

Therefore, you’re in good hands if you want to consider buying wind energy stocks — much promise exists in this sector.

3 Wind Energy Stocks to Consider Adding to Your Portfolio

Think you’re in the market for wind energy stocks? Take a look at the following options.

NextEra Energy Inc. (NYSE:NEE)

NextEra Energy Inc., headquartered in Juno Beach, Florida, is an electric power and energy infrastructure company that generates, transmits, distributes, and sells electric energy in Florida. It produces electricity from clean and renewable sources, including wind and solar energy. It also has full energy and capacity requirements services, including power and gas marketing and trading activities. The company also participates in natural gas production and pipeline infrastructure development and owns a retail electricity provider.

NextEra Energy 2021 had Q4 net income attributable to a GAAP basis of $1,204 million, or $0.61 per share, compared to net losses of $5 million in Q4 of 2020. NextEra Energy’s 2021 Q4 earnings were $814 million, or $0.41 per share, compared to $785 million, or $0.40 per share, in Q4 2020.

For the full year 2021, NextEra Energy reported earnings of $3.573 billion, or $1.81 per share, compared to $2.919 billion, or $1.48 per share, in 2020. NextEra Energy’s full-year 2021 earnings were $5.021 billion, or $2.55 per share, compared to $4.552 billion, or $2.31 per share, in 2020 on an adjusted basis. This represents year-over-year growth in adjusted earnings per share of approximately 10.4%.

Apollo Global Management (NYSE:APO)

Apollo Global Management Inc., headquartered in New York, New York, provides asset management services and offers its clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on yield, hybrid, and equity.

Why include Apollo on the list? The company bought offshore wind developer U.S. Wind, which works on a federal lease area off the coast of Maryland.

Apollo Global Management declared a cash dividend of $0.40 per share of its common stock for Q4 2021. Apollo Asset Management Inc. declared a cash dividend of $0.398438 per share of each of its Series A Preferred Stock and Series B Preferred Stock.

Net income was $612.5 million for Q4 at the end of December 31, 2021, and net income attributable to Apollo Global Management Inc. Class A common stockholders was $234.4 million for the end of Q4. Expenses for the end of Q4 include recognition of a one-time non-cash charge of $0.9 billion related to Apollo’s previously announced reset of its compensation structure.

Total assets under management increased to $497.6 billion during the quarter, driven by the growth of retirement services clients and strong third-party fundraising. Gross Inflows were $23.6 billion during the quarter and $67.5 billion over the twelve months ended December 31, 2021

Dominion Energy Inc. (NYSE:D)

Dominion Energy Inc., headquartered in Richmond, Virginia, provides electricity and natural gas to homes, businesses, and wholesale customers. It also runs a regulated interstate natural gas transmission pipeline and underground storage system and has several segments from which it operates: Dominion Energy Virginia, Gas Distribution, Dominion Energy South Carolina, Contracted Assets, and Corporate and Other.

In Q4 2021, Dominion Energy Inc. announced a net income of $1.3 billion ($1.63 per share) compared with a net gain of $682 million ($0.82 per share) in Q4 2020. Reported earnings of $3.3 billion ($3.98 per share) compared with a net loss of $401 million ($0.57 per share) for the same period in 2020.

Operating earnings were $752 million ($0.90 per share), compared with operating earnings of $672 million ($0.81 per share) in 2020. Operating earnings for the 12 months ended Dec. 31, 2021, were $3.2 billion ($3.86 per share) compared with operating earnings of $3 billion ($3.54 per share) in 2020.

Operating earnings were affected by economic hedging activities, gains/losses on nuclear decommissioning trust funds, the sale of Questar Pipelines, regulated asset retirements, and more. Dominion Energy has also agreed to sell its West Virginia natural gas utility, Hope Gas Inc. to Ullico Inc.’s infrastructure fund for $690 million, which will close in 2022.

Turn Toward Wind Energy Stocks

If you believe it’s time to consider whether you’ve got enough up-and-coming “green technology” in your portfolio, consider wind energy stocks for a boost in your portfolio. Wind and solar energy production both cost less than fossil fuel energy sources, and as technology continues to increase, it will only create more opportunities for your portfolio.

Should you invest $1,000 in NextEra Energy right now?

Before you consider NextEra Energy, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and NextEra Energy wasn’t on the list.

While NextEra Energy currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.