10 Renewable Energy Stocks to Watch in 2021

renewable energy stocks

There’s a lot of interest in renewable energy stocks these days…

The electric vehicle sector was one of 2020’s hottest. This had some spillover effects for the best renewable energy stocks of 2020.

2021 brought even more momentum to renewable energy stocks. A big catalyst is President Biden’s $2 trillion infrastructure and climate change bill — The American Jobs Plan. $100 billion has been earmarked to “reenergize America’s power infrastructure.” It’s supposed to lead to at least one million new renewable energy and energy efficiency jobs per year.

This has brought even more attention to the best renewable energy stocks.

But it’s not just good news that moves stocks. Every big oil spill means good PR for renewable energy.

To me, that’s a good thing. We need to stop having incidents like the 4,000-ton oil spill that happened in Mauritius last year.

This donation was part of a $1.6 million donation made by my charity Karmagawa. I’m proud to have helped wildlife and coral reefs with this donation. But you know what would have been better? Not having to deal with oil spills in the first place…

That’s one argument for trading renewable energy companies’ stocks. And the market’s taking notice.

Is Renewable Energy a Good Investment?

People ask me how to invest in renewable energy stocks often when they see how much effort I put into charity.

And many are interested in green investing. This kind of socially responsible investing targets environmentally friendly companies. Investing in renewable energy stocks can be part of this strategy.

But here’s the deal — I don’t invest in renewable energy stocks or any stocks…

I trade stocks, usually for just minutes.

For 20+ years, I’ve used the same patterns. I share everything I do. Here are few ways to start for no cost:

Following my patterns and rules is how I made almost $1.2 million in 2020 and over$785,000 so far in 2021* … All of which I donated to charity.

It’s how I’ve made $7 million from trading.*

(*Please note that these kinds of trading results are not typical and do not reflect the experience of the majority of individuals using our products. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.)

Top Renewable Energy Stocks

The stocks I target in the renewable sector look like the stocks on my other watchlists…

They’re stocks with solid news catalysts and a history of running. And they’re low float, so heightened demand can really move their prices.

They can be pumps, so I limit my risk accordingly. I never believe in these sketchy stocks. I watch the price action and react to it.

I don’t believe in there being ‘best stocks’ for renewable energy or any other sector. And that doesn’t limit me. It opens me up to any stock that has a chart I like.

10 Renewable Energy Stocks to Watch

I don’t trade random stocks. That yields random results. You must put thought into the stocks you trade. That means building watchlists to help you learn about the stocks on your scans.

See more of how I build my watchlists and sign up for my NO-COST weekly watchlist here.

I also maintain several watchlists every day…

Remember — I’m not telling you which renewable energy stocks to buy. I’m showing you my process so you can build your own watchlist. And here I’m sharing why I’m watching each stock. Do your research!

1. First Solar (NASDAQ: FSLR)

FSLR came roaring back from a March 2020 dip to hit a nine-year high in October. Then it trended upward until it peaked in January.

Now it’s back at those October levels, waiting for the next catalyst. Its production capacity is set to ramp up by nearly 50% over the next year…

That next catalyst might be just around the corner.

 

2. SunRun (NASDAQ: RUN)

It’s been a wild year for SunRun — from the high $7s last March to over $100 in January!

It’s pulled back from its early 2021 highs by 50%, on some very tradable volatility. With stock analysts forecasting a recovery, RUN might still have some runs in store.

 

3. Sunnova (NYSE: NOVA)

Take a look at NOVA’s chart and you’ll see something familiar — a series of runs into 2021, then a pullback.

When a renewable energy company’s stock follows sector trends, it tells me something important…

Other traders have this stock on their watchlists. When an industry catalyst hits, the stock might run. When other renewable stocks are running, it might run in sympathy.

 

4. NextEra Energy (NYSE: NEE)

Unlike the first three stocks, NextEra Energy isn’t dedicated to solar. It’s the largest U.S. utility by market capitalization. The majority of its earnings come from fossil fuel sources.

It’s been moving into renewables in a big way though. Its renewable energy capacity is on track to eclipse traditional sources by 2024.

This balance has helped it withstand some of solar’s recent turbulence. Through January it was at all-time highs…

Its recent trend points to it heading there again.

 

5. TPI Composites (NASDAQ: TPIC)

This wind power stock had a big sell-off in February after its last earnings report. Sales slowed down … The company cut five production lines to meet this decreased demand.

Like other renewable energy stocks, TPIC surged on Biden’s plan. As a leading wind energy firm, it might recover some of its momentum soon.

 

6. Daqo New Energy (NYSE: DQ)

This solar panel parts maker had an outstanding late-2020/early-2021 run.

At the start of September, it had already made a recovery to all-time highs. From there it rallied by almost 600% through mid-February. Now it’s lost about 50% of its peak value.

Is it overvalued? Undervalued? I’m not looking at renewable energy stocks to invest in them, so I don’t really care…

But it seems a safe bet to say DQ will have moves ahead of it. And moves in either direction can make for good trades.

 

7. Array Technologies (NASDAQ: ARRY)

Most solar company stocks saw a bounce after Biden’s late-March announcement. Not this ground-mounting systems maker, which has had a choppy path since its mid-2020 IPO.

The company chose a weird time to flood the market with a secondary offering. When it released 31 million new shares to the market in mid-March, it undercut the price ARRY had been trading at.

This was another bump for the stock … It had already been reeling from multiple analysts reducing its 2021 price target. But the company is still doing well in terms of profits. Once the stink of its bad news wears off, this stock may see a reversal.

 

8. Enphase Energy (NASDAQ: ENPH)

Enphase had been riding a hot streak, up almost 1,000% from its 2020 lows to 2021 highs. Like the other stocks on this list, it’s since pulled back…

Some think the stock is overvalued. But its profits dwarf other companies on this list. The market for the solar chargers it makes seems to only be growing.

 

9. SolarEdge Technologies (NASDAQ: SEDG)

SolarEdge is another solar stock that had a meteoric rise over the past year. It came up more than 450% off its March 2020 lows before its recent slump… getting as high as $380 a share!

Now it’s chopping along in the mid-$200s. But some still think it’s overvalued. It could be due for another plunge in the near future.

 

10. Brookfield Renewable Corporation (NYSE: BEPC)

BEPC hasn’t reached the heights of other stocks on this list. Some of the sector’s recovery had already been priced into its 2020 IPO.

Still, it’s got potential. It operates one of the world’s largest renewable energy platforms. It recently partnered with renewable heavyweight Plug Power (NASDAQ: PLUG). Together, they’re building one of the first big hydrogen plants in North America.

Could be some exciting developments ahead.

 

Renewable Energy Penny Stocks

Many renewable energy stocks followed penny stock patterns in the last year

So what happens when you combine the two?

For the renewable energy penny stocks I’ve been watching, it’s meant even more volatility. That’s a good thing.

If you’re not drooling at the prospect, watch my no-cost “Volatility Survival Guide.” I’ll show you how volatility can make for great trades, regardless of the direction. Sign up for the four-video course here.

1. Sunworks Inc. (NASDAQ: SUNW)

Renewable energy stocks have been on a tear…

But even in this hot sector, SUNW stands out. At its peak, it was up 8,000% from its 52-week low.

It’s since fallen by 60%. It rose after the Biden proposal, then fell again. Some think the stock is overvalued, while others group it with top solar stocks.

 

2. ReneSola (NYSE: SOL)

SOL was another massive percent gainer over the last year. Like SUNW, it’s fallen further than the rest of the sector in recent months.

Although it’s missed some targets, the outlook for the company in 2021 is good. This stock could have more runs in its future.

Conclusion

What are the best renewable energy stocks?

There’s no good answer for this, but hopefully, this watchlist gives you some ideas of what to look for. Learn from it, then create your own watchlist.

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It’s anyone’s guess whether renewable energy stocks will recover their 2020 momentum in 2021. But if they do, you want to be ready.

This means studying as much you can and learning what setups work best for you. You can’t control the market, but you can control your response to it. And I have a ton of free and low-cost resources to help you get up to speed.

After you learn the basics, my Trading Challenge can help you hone your skills. I don’t accept everyone. But if you’re willing to work hard at becoming a better trader, I hope you get in touch.

Apply for my Challenge here.

We’re in a rare market these days. Renewable energy stocks have been on fire, along with other sectors.

Our work is preparing for what the market throws our way next.

What do you think about renewable energy stocks? Have you traded any of the stocks I’ve put on here? Let me know in the comments — I love hearing from you!

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