For successful online stock trading, you need to identify industries that are set to grow and be in great demand in the coming years. That's how you trade profitably and make money.
Alternate Energy Stocks Can Be Your Green Investments
Going green has become a fad these days. Of course, when it comes to trading, you need to have profitable strategies in place too.But if you have a passion for the environment you can turn to alternate energy stocks. Motley Fool analysts reckon that the wind energy sector is set to continue its exponential growth that has caused its contribution to the country's electricity generation to rise from 1.5% in 2008 to 6.3% by 2017. And analysts reckon that this percentage could rise even more before the decade ends.
They also point out that this astronomic growth of the wind energy sector has led to many of its long-term investors becoming wealthy. And other renewable energy sources have experienced this growth as well in their early development stages. Companies seem to be realizing that environmental stewardship helps their business opportunities too. And so, wind and solar energy stocks are becoming money making opportunities for investors.
Wind and Solar Energy Generation by NextEra
Starting with wind, analysts point out NextEra Energy ($NEE). In just the past two decades, NextEra has invested $23.6 billion and become the owner of the United States' largest wind capacity, generating 13,852 MW. This company contributes a lion's share to America's wind energy production and thereby plays a significant role in the overall energy generation of the country. And now, NextEra is branching out into solar energy as well.
In 2017, solar accounted for around 1.5% of the United States' electricity generation. That's the contribution wind power had around 10 years back. Solar energy has the potential to keep growing at the level of wind energy. NextEra managed to generate more solar power in 2016 than any other organization in the world. And it owns around 11% of the installed solar capacity of the United States. There are more capacity additions the company has planned in the coming years.
The $NEE stock has managed to easily outpace the S&P 500. And it also currently offers a 2.8% dividend yield. The rising potential of renewable energy is clearly highlighted in this stock.
Most Successful Solar Panel Manufacturer, First Solar
On the solar note, let's move to one of Elon Musk's companies. First Solar ($FSLR) overcame some of the challenges faced by the industry in recent years, and has been planning for the future. Its goal is toattain an annual manufacturing capacity of 5700 MW by 2020. Contributing to a great deal of that capacity would be the company's Series 6 solar panels that promise greater efficiency plus lower costs of installation. That could certainly encourage many solar energy providers to install these panels at the customers' facilities.
First Solar is considered to be America's most successful solar panel manufacturer. As 2017 came to an end, the company had a significant order backlog and cash of almost $2.3 billion. That should make the company's production facilities running fully in the coming years, all through 2020.
First Solar Could Focus on Panel Manufacture
The investment it makes in increasing its panel manufacturing capacity could also lead the company to rely on this business of selling panels more than power system development. If such a shift of focus happens, you can expect the revenue growth to be relatively flat in the coming years. However, the management expects margins to be higher as a result of the new mix in sales. Whether the margins are higher or flatter, the operating cash flow is at healthy level - $1.3 billion in 2017 –which is expected to continue.
Such expert insight helps you make the right trading decisions. At TradeZero, we help you get the most out of online stock trading through commission free trading and advanced trading software. Call us at +1 954-944-3885 or email support@tradezero.co.
DISCLAIMER
The content provided here is solely for informational and educational purposes and does not constitute an offer to sell or a solicitation to buy any security or instrument which may be referenced upon the site, or an offer to provide advisory or other services by TradeZero in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Investors are advised not to rely on the information contained in this writing to make an informed investment or financial decision. TradeZero explicitly disclaims all liability for any action taken based on any information contained in this writing.