Are Major Renewable Stocks A Good Bet After Recent Correction?

There is no doubt that there is now a significant shift in the way that the world is looking to take care of its energy needs and policymakers in most nations are looking for ways to move into renewable energy in a big way.

The dependence on oil and coal is being seen as something that the world needs to get weaned out of. In this situation, an opportunity lies for investors who want to cash in on a sector that could eventually turn out to be massive in the years to come.

However, one needs to take a closer look in order to figure out if it is an investment opportunity or not. At the end of the day, it is important for investors to identify renewable energy stocks which are being sold cheaply in the market and pounce on some of them if they feel so.

At this point in time, there are stories that are being weaved with regards to many companies and it is important for investors to identify the right ones. Additionally, large-scale adoption of renewable energy is perhaps decades away and that is another thing that needs to be factored in when one looks into investing in the sector.

There are now plenty of stocks worth looking into but at the same time, it is important to note that the sector can often seem volatile. Stocks of companies like Hannon-Armstrong Sustainable Infrastructure (HASI), Clearway Energy (CWEN), and SolarEdge Technologies (SEDG) have managed to clock considerable gains over the past half a decade.

On the other hand, there are companies like NextEra Energy (NEE), which may not have performed particularly well but provide a hybrid option. It is involved in both utilities and also in renewable energy business at the same time. There is no way of saying if it is the right time for investors to get into renewable energy stocks. The sector is still fairly nascent and hence, investors may need to consider hybrid stocks like NextEra at this point for a degree of protection.

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