For all the volatility sweeping through Wall Street in 2024, renewable energy stocks remain a strong long-term bet for investors.
The global renewable energy market was valued at $1.1 billion in 2023 and is expected to rally to $2.45 trillion by 2032, representing a compound annual growth rate (CAGR) of 9.47%.
With many governments worldwide committing to clean energy initiatives over the coming decades, renewable energy stocks remain an excellent long-term investment strategy to incorporate into portfolios.
We’re also seeing the ongoing artificial intelligence (AI) boom uncover new opportunities for renewable energy stocks on Wall Street. With the arrival of ChatGPT accelerating the generative AI landscape, the vast computational power required to drive these complex solutions is more likely to be delivered by clean energy.
In the midst of what appears to be a challenging Q3 2024 for Wall Street, renewable energy stocks empower investors to build a stronger long-term focus for their portfolios and an opportunity to safeguard against any short-term vulnerabilities.
These three renewable energy stocks could be strong propositions to keep investors smiling throughout Wall Street’s uncertain period.
Constellation Energy (CEG)
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Having ended the first half of 2024 72% higher, Constellation Energy (NASDAQ:CEG) has consistently outperformed the S&P 500 benchmark throughout the year.
The Baltimore-based electricity, natural gas and energy management provider recently jumped 16% off the back of receiving record payouts to power U.S. grids.
With Joseph Dominguez, CEO of Constellation Energy, emphasizing the firm’s role in driving the data economy, we can expect Constellation to remain a key player in powering the technological booms of the future surrounding the AI landscape.
Having seen Talen Energy and Amazon Web Services (AWS) strike an energy deal earlier this year, the lucrative competitor contract has helped Constellation drive its own expectations higher within the tech energy landscape.
While Constellation’s consensus estimate for Q2 2024 revenues is pegged at 2.67% lower than a year ago at $5.3 billion, it’s reasonable for investors to expect its revenues to grow as the implementation phase of the generative AI boom kicks into gear.
NextEra Energy (NEE)
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Another example of a stock that performed exceptionally well throughout the first half of 2024 is NextEra Energy (NYSE:NEE).
In the year’s opening two quarters, NEE grew 17%, and despite a reported 35.6% drop in renewables revenue in Q2, the long-term outlook for the stock appears far brighter.
As America’s largest electric utility, NextEra is a stock with bags of potential for the future, particularly with expectations of Federal Reserve interest rate cuts on the horizon and a prospective end to investors seeking short-term Treasury yields.
With cuts on the way and a reversion to more long-term, speculative prospects, NextEra could be an excellent option to add to portfolios.
Backed by strong tailwinds, there are plenty of fundamental factors that show a more optimistic outlook for NEE. Overall, the second-quarter adjusted earnings per share (EPS) of $0.96 for NextEra came in at $0.06 higher than expected.
Additionally, net income at NextEra’s renewable-focused Florida Power & Light subsidiary increased by $80 million to $1.23 billion.
These figures point to a strong future for NextEra Energy, and once rate cuts begin to come into play, we can expect more positive movement for the stock.
Eco Wave Global (WAVE)
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In terms of stocks with high clean energy potential, it’s difficult to look beyond Eco Wave Global (NASDAQ:WAVE). The stock ended the first half of 2024 128% higher, representing significant outperformance.
The wave energy company’s growth in 2024 was largely driven by the announcement in April that Eco Wave commissioned a major feasibility study. Examining 77 sites throughout the United States coastline, the study will determine how the firm could implement its solutions domestically.
This represents a watershed moment in the development of wave energy, and Eco Wave’s commitment to innovation has already seen the company win the prestigious EDF Pulse Award in the category of Developing a Profitable, Decentralized Wave Energy Technology in recent weeks.
For investors seeking to incorporate more ambitious clean energy firms or for those keen to accommodate wave or hydraulic-focused stocks into their portfolios as a long-term investment opportunity, Eco Wave Global should be a key consideration for the in-roads it’s making in the industry in 2024.
At a time when short-term market prospects have been hampered by a downturn on Wall Street, these renewable energy stocks could offer a stronger long-term outlook for investors.
On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Dmytro is a finance and investing writer based in London. He is also the founder of Solvid, Pridicto and Coinprompter. His work has been published in Nasdaq, Kiplinger, FXStreet, Entrepreneur, VentureBeat and InvestmentWeek.
