Benzinga
Published May 12, 2023 20:07
Updated May 12, 2023 21:10
Clean Energy Analyst Names Top 4 Stock Picks, Prefers 'Simple Stories And Stocks With Structural Tailwinds'
Benzinga - Clean energy stocks are off to a shaky start to 2023, but Bank of America analyst Julien Dumoulin-Smith named his four top clean energy stock picks on Friday.
Earnings Season Takeaways: Now that the first-quarter earnings season is complete for clean energy stocks, Dumoulin-Smith listed four major takeaways for investors:
Dumoulin-Smith said he preferred simple stories and stocks with structural tailwinds heading into the second quarter.
"Heading into 2Q23 we see domestic content as the key policy angle to watch and CA origination trends in resi solar as the key demand barometer," he said.
Related Link: SunPower Shares Drop After Missing Q1 EPS By Wide Margin; Bags Loan Commitment From KKR
Top Stock Picks: He said investors looking to buy the dip in clean energy stocks should focus on top picks Sunrun Inc (NASDAQ: RUN) and Sunnova Energy International Inc (NYSE: NOVA). In addition, he recommends Array Technologies Inc (NASDAQ: ARRY), Nextracker Inc (NASDAQ: NXT) and FTC Solar Inc (NASDAQ: FTCI) as stocks to buy with attractive valuations and high exposure to accelerating order books.
"The more recessionary the backdrop, the more the IRA subsidies should shine and make these companies more attractive," Dumoulin-Smith said.
Benzinga's Take: Not only do clean energy stocks allow investors to put their money at work in promoting a cleaner environment, but they have also outperformed the market in recent years. In fact, the iShares Global Clean Energy ETF (NASDAQ: ICLN) has outperformed the SPDR S&P 500 ETF Trust (NYSE: SPY) by 29% over the past three years.
Photo: Shutterstock
Latest Ratings for RUN
Feb 2022 | Wolfe Research | Maintains | Outperform | |
Jan 2022 | Truist Securities | Maintains | Buy | |
Dec 2021 | Keybanc | Downgrades | Overweight | Sector Weight |
View the Latest Analyst Ratings
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