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Clean Tech Movers And Shakers Investors Need To Keep On Their Radar

OTOS Inc. - Wed Jun 14, 2023

Rapid climate change is posing a massive problem for the global economy, and perhaps even more so for emerging markets that are currently experiencing the brunt of several climate-related natural disasters. 

Against the backdrop of ever-growing concerns relating to environmental efforts, demand for cleaner and more sustainable technological solutions is taking form in all corners of the world, with startups and companies boasting innovative green alternatives. 

Despite investors having to navigate a tumultuous economic landscape during the first half of the year, as tightening U.S. funds on the back of one of the biggest U.S. bank defaults since 2008 which briefly spilled over to Europe had markets in turmoil for much of the time, the clean tech sector managed to come out on the other side somewhat unscathed. 

Latest data shows that the global smart grid and smart infrastructure (QGRD) was up 12.23% during Q1 2023, and CELS (U.S. Clean Energy) was up 10.71% in comparison to the overall 7.5% increase of the S&P 500. During the same period, Global Wind (GWE) also jumped by 3.65%, and the energy select (IXE) was down by 4.37%. 

Already half through the year, clean-tech companies could provide a potential upside to investors in the coming months as they tread through uncertain territory, and have to navigate volatile market conditions against broader macroeconomic slowdown. 

Clean tech making the biggest moves

With six months left to the year, and investors uncertain of how conditions will unfold, considering how much has already taken place in the first leg of 2023, clean tech could provide some stability to their portfolio's performance. 

SolarEdge Technologies 

SolarEdge (NASDAQ: SEDG) manufactures and sells an array of solar energy storage products, to customers in the residential, commercial, and industrial marketplace. The company has seen a compelling year so far, and has a good track record, with analysts giving SEDG a 25.62% upside potential. 

The company’s financials are looking relatively promising considering the economic and political climate SolarEdge is currently operating in. Year-over-year (YoY) revenue soared by 58% from $1.96 billion to $3.11 billion between 2021 and 2022. However, net income was down roughly 44% for the same period. 

Considering its stock performance, prices are down 0.030% year-to-date (YTD), as record-breaking sales in its solar segments helped to stabilize stock prices and keep investors enticed. Overall, the company has firmly positioned itself, as demand for solar energy products and services continues to grow on the shifting trend toward clean energy. 

Fluence Energy Inc. 

Fluence Energy (NASDAQ: FLNC) is somewhat of a new contender on the clean tech scene, with a diversified product offering stretching from sustainable energy storage to digital platforms. A key feature that makes Fluence stand out in the industry is its direct focus on advanced storage systems for commercial and industrial customers. 

During its most recent Q2 2023 fiscal quarter results, the company announced that it’s raising its full-year guidance after posting record quarterly revenue of $698 million. This was an increase of 104% YoY%, as the company experienced a net loss of $37.4 million in Q2 2023, down from $60.7 million in Q2 2022. 

The company is highly optimistic about its forward-looking strategy, which has seen it raise its fiscal guidance range to $1.85 - $2.0 billion. Furthermore, the company recently published its first-ever sustainability report and is further developing alternative green energy products and services that are making a direct difference in the wider marketplace. 

AvantGrid 

Energy solutions company and services provider, AvantGrid (NYSE: AGR) currently serves more than 3.1 million customers across New England, New York, and Pennsylvania. The company isn’t small, with a market capitalization of more than $14 billion, some analysts might feel that its target price range of $36.81 - $51.71 is somewhat undervalued. 

Attractive pricing means that AGR could see more interest from novice investors that have a lower risk appetite but want to diversify their portfolios into sustainable energy. So far AGR is down 10.38% YTD, and 16.54% over one year. 

Keeping AvantGrid could be a compelling consideration for investors, as the company has both solar and wind in its portfolio, and is investing heavily in the expansion of the production of its alternative energy business segment. For March 2023, total net revenue rose by 15.61% to $2.47 billion, and the company has seen four consecutive quarters of positive revenue growth. 

Ormat Technologies 

Renewable energy company, Ormat Technologies (NYSE: ORA) has more than five decades worth of industry experience and has established a portfolio of global investors, stakeholders, and a wide range of commercial clients in the U.S., New Zealand, and Taiwan, among others.

The company primarily focuses on geothermal power, waste power REG, and energy storage units, with its most recent geothermal plant in North Valley, Nevada, coming online at the start of May. The new plant will power nearly 22,000 homes, and further reduce CO2 emissions by 3.5 million tons. 

A trusted and reputable company that has seen a steady stock performance, with the price climbing 3.13% YTD, and one-year performance up by 5.84%. Q1 2023 net income jumped by 57%, marking one of its best-performing quarters to date. 

The company finished off 2022 with more than $730 million in revenues, and so far for much of the year, cash flow has also steadily improved, resulting in a better-than-expected balance sheet for the first half of the year already. 

Plug Power Inc 

Considered to be one of the most attractive clean tech companies currently on the market, Plug Power (NASDAQ: PLUG) is a hydrogen fuel cell company that has seen impressive performance in recent months.

The company has plugged itself into well-known companies, providing fuel cells to retail giants including Amazon (NASDAQ: AMZN) and Walmart (NYSE: WMT). Furthermore, the company has aligned itself with other high-profile companies, mostly in North America, deploying more than 60,000 fuel cell systems for forklifts and already having a robust 180 fueling stations. 

First quarter results were below analysts' expectations, however, the company reported $210 million in revenue, an increase of 49% YoY. On the stock market, things look good and present an upside in the later stage of the year, once ongoing projects are completed and come online. So far, YTD prices of PLUG are down just over 20%.

On June 7, Plug Power stock jumped by 10% in single-day trading, after it announced that it will enter a deal to provide Calistoga, a small city in California with fuel cells that will replace the city’s diesel generators. 

Constellation Energy 

Constellation (NASDAQ: CEG) is perhaps one of America’s biggest and most prominent carbon-free energy producers and has recently been named a Fortune 200 company after completing its first full year as an independent company. 

The company reported impressive revenues for 2022, with more than $24.4 billion on the books. Looking at Q1 2023, Constellation reported a net income of $96 million, and non-GAAP of $658 million. Furthermore, the company currently holds its full-year guidance and has further commenced a debt-financing plan. 

Given its positive track record, and seeing impressive first-quarter performance, CEG has seen prices jump by 12% YTD. Moreover, one-year performance is up by a robust 51%, and CEG currently sits on a 1.22% dividend yield. 

This is quite an impressive portfolio and track record for a company that recently broke off from its former parent company, Exelon (NASDAQ: EXC) in February 2022. 

Concluding Thoughts 

Going forward, there could be even further upside for clean tech as the industry begins to mature and experiences more widespread adoption of its services and products in emerging markets. 

Nonetheless, these are some of the biggest movers and shakers that investors should hold close to, as they could provide potential security amidst the volatile market conditions. 

Going forward, we could see even bigger interest in clean tech companies from institutional investors, as sustainability and alternative energy forms part of the broader plan to decarbonize cities and nations. 


On the date of publication, Pierre Raymond did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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