2 Renewable Energy Stocks to Help Future-Proof Your Portfolio

The current Russia-Ukraine war has set off a cascading series of events that have reverberated loudly across the entire globe. One of the notable consequences has been the steep rise in the price of oil. A harsh light was shone on Europe’s over-reliance on Russian fuel and gas, leading to uncertainty around the future of its energy production.

Global governments were already working to move away from fossil fuels in the coming decades, but this — hopefully — once-in-a-lifetime event has forced more expedited thought on the process. Renewable energy companies have seen heavy investment as a result.

With that in mind, here are two companies that could be poised to profit from the shift towards renewable energy.

NextEra Energy

NextEra Energy (NYSE: NEE) is currently the world’s largest energy producer for both wind and solar. It has seen a surge of over 5% in the past five days, massively outpacing the S&P 500 which only grew by 0.95% in the same period. NextEra’s foundation is based on its utility arm, with its Florida Power & Lights subsidiary currently the largest regulated electric utility in the U.S., serving over 11 million people.

With this solid revenue stream in place, the company expanded rapidly into renewable energy. Currently boasting 22 gigawatts of renewable power capacity, the firm is aiming to add up to 30 gigawatts by 2024 — more than doubling its already industry-leading figures.

The combination of a steady utility service and a rapidly growing new technology creates a stock with both a high floor during volatile times and a high ceiling for growth that should have investors scrambling to add it to their portfolio.

Plug Power

Hydrogen fuel cell manufacturer Plug Power (NASDAQ: PLUG) has seen significant investment over the past number of days. A jump of over 17% in the last few days typifies the type of behavior that has been caused by the current geopolitical climate. 

Plug Power already has a list of very reputable organizations within its existing customer base, with Amazon and HomeDepot numbered amongst its clients. The firm provides fuel cell solutions for these companies in an attempt to reduce their carbon footprint. The company is also making a significant effort to produce green hydrogen, a renewable energy source formed by splitting water.

It must be noted, however, that Plug Power has still yet to return a profit. It may be extremely well-positioned to benefit and grow as the world moves to more renewable sources of energy, but it is still a highly speculative stock that has a lot to prove.

Market AnalysisNextEra EnergyPlug Power
Pádraig BolgerPádraig Bolger
  • Pádraig Bolger
  • Financial Writer at MyWallSt

  • Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world’s leading sports brand.

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