The energy industry is changing fairly quickly due to the policies being adopted all over the world and there is a significant push for a future powered by renewable energy. Hence, more and more investors are nowadays looking for options in the renewable energy sector. Since a new year is almost upon us, it might be the right time to take a look at three renewable energy stocks that you could track in 2022.
As the name suggests, SunPower is involved in the solar energy industry and is specifically involved in the residential solar power sector. The energy solutions firm may be in the right place at the right time considering the fact that solar power installations in the United States have hit a record in recent times. In addition to that, people are also installing electric vehicle charging points and storage to their installations.
It has exited from the module development business and is fully focussed on the solar energy sector. The non-GAAP gross margin has gone up from $0.49 per watt to $0.69 per watt and the recourse debt has also been cut down to $154 million from $428 million. Although the reduction in the number of subsidies for solar power is a concern, investors could do well to keep SunPower in their sights in 2022.
The second renewable energy stock that you could consider tracking is that of Atlantica Sustainable Infrastructure. The renewable energy infrastructure is nowadays getting a lot of attention from governments and that makes Atlantica an interesting proposition. The lion’s share of its revenues are generated by the solar energy business and that is in sound health since the company has long term contracts in place.
In addition to that, Atlantica is also a dividend-paying company and the yield at this point stands at 4.8%. More importantly, the company has renewable energy operations in the Middle East, Europe and South America in addition to North America.
The electric vehicle industry is growing at an unprecedented rate at this point and that is naturally going to lead to higher business for electric vehicle charging companies. Hence, ChargePoint Holdings could be one of the renewable energy stocks that investors could consider adding to their watch lists.
The Infrastructure Investment and Jobs Act from Joe Biden is going to invest as much as $7.5 billion towards electric vehicle charging space. It is the leading company in this space in the United States and more importantly, its business is capital-light. The company believes that its growth is going to be in sync with the growth in the electric vehicle industry and it is quite clear that there is a lot of room for growth in that particular industry.