Renewables energy is one of the best spaces to be in right now as far as investors are concerned. There is a lot of investment and incentive coming to the industry that is propelling some of the renewable energy stocks to high valuations. The ASX is also home to a few renewable energy stocks and they have been gaining momentum in the last few months. Since the US elections and the confirmation of Biden’s victory, the entire renewable energy segment has been boosted as one of the first steps taken by Biden in office was making sure the USA, the biggest economy in the world and the home to the biggest investors in the world will be rejoining the Paris Climate Agreement and drive a push towards clean, green, renewable energy. Biden’s green energy push is extremely important for the quick adoption of renewable energy that is required to save our environment.
Mercury NZ Ltd. engages in the generation and distribution of electricity from hydro, geothermal, and gas. It operates through the following segments: Generation/Wholesale, Retail, Metrix and Others. The company demands a market cap of over $8 billion and has a dividend yield of over 2%. Mercury stock price has been skyrocketed off late on the back of significant tailwinds in the renewable energy sector.
Most recently, the renewable energy giant increased its fiscal 2021 EBITDAF guidance to A$535 million ($413.4 million) from A$505 million previously. The higher EBITDAF guidance was based on an expected 200-gigawatt-hour increase in full year hydro generation to 3,900 gigawatt hours and a strong trading performance, according to the latest announcement. Mercury is one of the best renewable energy stocks that are listed on the ASX.
Melbourne headquartered Tilt Renewables Ltd. is a developer and owner of renewable generation in Australia and New Zealand. Its projects include Rye Park Wind Farm; Salt Creek Wind Farm; Waddi Wind & Solar Farm; Dundonnell Wind Farm; Palmer Wind Farm; New South Wales Project; Kaiwera Downs Wind Farm; Mahinerangi Wind Farm and Waverley Wind Farm.
It is an ASX renewable energy mid cap with a market capitalisation of $2.4 billion. The stock has performed magnificently and has just posted it’s all-time high last week. Tilt’s major shareholder is Infratil and it has been put under a strategic review since December. An acquisition of Tilt is on the cards and Inftratil has spoken publicly about there being strong interest for Tilt Renewables. Either Way, Tilt is a quality renewable energy stock on the ASX and it has gained 98% in the past 1 year.
Genex Power Ltd. is a Sydney based power generation development company, which focuses on the production and storage of renewable energy. Its projects include Kidston Solar and Kidston Hydro Pumped Storage projects.
Genex is an ASX small cap renewable energy firm with a market capitalisation of $145 million. The stock price has been on an upward trajectory for a while now and it trades close to its 52-week high on the back of a 43% increase in share price performance in the past 3 months.
The latest catalyst for the share price surge has been the extended founding secured from the Queensland government. In addition to the original $132 million package that was granted, the QLD government will now provide Genex with $147 million for the construction of 275KV single circuit, 185.9km transmission line from Kidston to Mt. Fox. The funding is also said to include the new substation at Mt. Fox. Genex is surely a renewable energy stock to keep an eye on for the future.
Arising out of West Perth and founded by Victor Rosevictornberg in 1995, ClearVue Technologies Ltd. provides photovoltaic and nano-technology to produce clear glass that generates electricity. The company intends to operate through the licences, royalty payments, sale and supply businesses. It offers an edge of the glass for controlled distribution and harvesting through solar cells, whilst allowing the natural light to pass through unaltered. The application ranges from commercial buildings to greenhouses.
It is a very early stage company with a market capitalisation of just $47 million. The share performance has been spectacular in the past year – with investors making gains of 106% in the past year and 178% in the past 6 months. There is lots of potential with ClearVue and it should definitely be looked at closer when considering a renewable energy play.
Meridian Energy is dual listed stock – both on the ASX and NZE. It is a 100% renewable electricity generator that retails to homes, farms, and businesses. Meridian generates electricity using solar, wind, and hydro sources. The firm is the largest electricity generator in New Zealand. Meridian generates approximately 30% of the national electricity in New Zealand and retails through Meridian Energy and Powershop.
The New Zealand Wholesale segment covers activity associated with Meridian’s New Zealand. The Australia segment includes Generation of electricity from Meridian’s two wind farms and three hydro power stations, and acquired under power purchase agreements, for sale into the Australian wholesale.
The Meridian stock price has been battered recently given some of the announcements coming out of the firm. The firm has a market capitalisation of $16 billion and has a dividend yield of 3.66%. It is one of the largest renewable energy stocks listed on the ASX and it is worth looking at the valuations when on the lookout for a renewable energy stock.
Renewable energy is the future and there is absolutely no question about it. Investments are already heating up in the space and it is crucial to get in on the action before renewable energy becomes the norm over that of oil and coal .
Growth stocks are potentially one of the hardest to pick as there are a lot of factors that need to be considered – from industry tailwinds to financial health of the individual stocks, and a lot of little things in between them. Shares in Value research team have picked their top 3 ASX stocks to buy in 2021. Click here to download the report for free.