Stocks are on sale and commodities are going through the roof as Russian forces cross into Ukraine and begin to excise the Ukrainian military human and equipment infrastructure.
The sanctions and threats of other sanctions add up to the risk of huge disruptions in the supply of many commodities, but Oil, Gas, and Wheat are at the heart of these concerns.
Already, the price of Oil has surged to triple digit pricing, which could be the perfect recipe to lay a foundation for a new wave of interest in green energy technology solutions. And it comes at a time when stocks in this space are trading at huge discounts to where they were last year.
Is this a perfect storm for value in the green energy space? We think so, and we take a closer look at some of the more interesting names in the space below.
NextEra Energy Inc. (NYSE:NEE) is an electric power and energy infrastructure company that operates through its FPL and NEER segments.
The FPL segment engages primarily in the generation, transmission, distribution, and sale of electric energy in Florida. The NEER segment produces electricity from clean and renewable sources, including wind and solar. It provides full energy and capacity requirements services, engages in power and gas marketing and trading activities, participates in natural gas production and pipeline infrastructure development, and owns a retail electricity provider.
NextEra Energy Inc. (NYSE:NEE) recently announced that its board declared a regular quarterly common stock dividend of $0.425, an approximate 10% increase versus the prior-year comparable quarterly dividend. This increase is consistent with the plan announced in 2020 of targeting roughly 10% annual growth in dividends per share through at least 2022, off a 2020 base. The dividend is payable on March 15, 2022, to shareholders of record on March 1, 2022.
“The board’s approval to continue to grow our dividends per share in excess of our expected adjusted earnings per share growth rate is a result of our success in executing on our industry-leading business strategy,” said Jim Robo, chairman and chief executive officer of NextEra Energy. “With a 60% payout ratio at the end of 2021, below the peer average of approximately 65%, and the continued strength of the earnings and operating cash flow growth at NextEra Energy, we remain well-positioned to support the dividend policy going forward. I believe we continue to offer a best-in-class total return potential, with above-average dividend growth and clear visibility to deliver financial results at or near the top end of our adjusted earnings per share expectations ranges in 2022, 2023, 2024 and 2025, while at the same time maintaining our strong credit ratings.”
We’ve witnessed 2% during the past month in terms of shareholder gains in the listing. Market participants may want to pay attention to this stock. NEE has a history of dramatic rallies. Moreover, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 40% over what the stock has registered over the longer term.
NextEra Energy Inc. (NYSE:NEE) currently trades at a market capitalization of $145 billion, with a significant war chest ($692M) of cash on the books that stands against about $17.4B in total current liabilities. NEE is pulling in trailing 12-month revenues of $21.3B. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 17.6%.
Eco Innovation Group (OTC US:ECOX) could be the most interesting name on this list because the stock is trading dirt cheap as the company just starts to turn the page into full commercial-stage operations. The company boasts real IP and has already laid a foundation for multiple uncorrelated revenue streams.
Overall, ECOX seems to be gaining traction toward a series of meaningful launches involving innovative green tech solutions. The company’s model is driven by nurturing the work of top inventors in the US and Canada, helping to bring their best green-tech ideas to life and then signing exclusive licensing deals to commercialize the results. But the company has also entered the green construction space and has started to put together lucrative deals to renovate existing facilities for 21st century life.
Eco Innovation Group (OTC US:ECOX) announced yesterday morning, as a case in point, that its green construction subsidiary, ECOX Spruce Construction, has been contracted to provide all services to renovate a retail location of a major U.S. merchandiser in Hyannis, Massachusetts.
According to the release, the contract was awarded by a large project management firm engaged in the development, transformation, and maintenance of real estate in both the public and private sectors, to Edgar E. Aguilar of Blueprint Construction, the managing officer of ECOX Spruce Construction. Through a construction services contract with Aguilar and Blueprint Construction, ECOX fulfills all aspects of Blueprint’s active contractor and subcontractor agreements.
The Company began work in Hyannis on February 21st. ECOX’s management believes that ECOX Spruce Construction may be in a position to renovate additional retail locations for this merchandiser, with over 1,000 stores in North America, as well as other opportunities. The Company has set a goal of achieving $6 million in revenues from related projects in the 2022 fiscal year.
Eco Innovation Group (OTC US:ECOX) CEO, Julia Otey-Raudes, stated, “ECOX Spruce Construction has the capacity to reach our financial target with our current pace of project acquisition. In January, we signed a commercial renovation contract with Davaco for a U.S. military base in California, this month we break ground on a commercial retail renovation, and we intend to continue acquiring and completing green construction projects. The end client here is an iconic Fortune 500 brand in the domestic U.S. retail market, and we are very excited to have broken ground on this project in February 2022.”
Enphase Energy Inc. (Nasdaq:ENPH) bills itself as the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app.
The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped more than 42 million microinverters, and approximately 1.9 million Enphase-based systems have been deployed in more than 130 countries.
Enphase Energy Inc. (Nasdaq:ENPH) recently announced that Enphase installers in New Jersey have seen a growing number of deployments of the Enphase Energy System, powered by IQ Microinverters and IQ Batteries, as New Jersey residents seek protection against grid outages.
“Home batteries are an increasingly important investment for homeowners across the country to gain energy resilience during grid outages,” said Arthur Souritzidis, CEO at Momentum Solar, an Enphase Platinum installer. “Adding an Enphase Energy System with IQ Batteries to a home gives homeowners ultimate control, enabling them to produce, store, and manage their own clean energy.”
Even in light of this news, ENPH has had a rough past week of trading action, with shares sinking something like -12% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 11% in that time on strong overall action. We would also point out the big turnaround yesterday, possibly reacting to the threat of much higher oil prices and the windfall that could represent for alternative energy players.
Enphase Energy Inc. (Nasdaq:ENPH) managed to rope in revenues totaling $412.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 55.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($1B against $439.8M).
Other key stocks in the Green Energy space include First Solar Inc. (Nasdaq:FSLR), SunRun Inc. (Nasdaq:RUN), General Electric Co. (NYSE:GE), Tesla Inc. (Nasdaq:TSLA), and Stem Inc. (NYSE:STEM).
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