Top Wind Stocks for Q1 2020

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The wind energy industry is comprised of a small number of pure-play companies and is dominated by major players that operate their wind energy business as a division or a subsidiary, such as General Electric Co.’s (GE) Renewable Energy division. The industry has enormous potential for significant growth, with the International Energy Agency reporting that wind sources ultimately could produce 18 times the global demand for electricity. The First Trust Global Wind Energy ETF (FAN) is a useful benchmark for wind companies. In the trailing 12-month period, this benchmark has lagged somewhat behind the market in overall price gains, returning 22.3% while the S&P 500 has gained 27.4%.

Here are the top 3 wind stocks with the best value, the fastest earnings growth, and the most momentum.

Best Value Wind Stocks

These are the wind stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Wind Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Orsted A/S (DNNGY) 32.81 41.2 12.4
Northland Power Inc. (NPI.TO) 27.41CAD 4.9 15.9
TransAlta Renewables Inc. (RNW.TO) 15.73CAD 4.1 18.4
Source: Investopedia; Yahoo! Finance
  • Orsted A/S: Orsted is a Danish utility company focused on developing and operating offshore wind farms. In January, the company announced the beginning of construction of its first offshore wind farm in the Netherlands.
  • Northland Power Inc.: Canada-based Northland Power is a diversified energy company with power infrastructure assets in wind, natural gas, solar, and more.
  • TransAlta Renewables Inc.: TransAlta Renewables is a Canadian energy company with renewable power generation facilities including both wind and hydroelectric plants. In the final two weeks of 2019, the company saw two new wind farms begin commercial operation.

Fastest Growing Wind Stocks

These are the wind stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.

Fastest Growing Wind Stocks
  Price ($) Market Cap ($B) Revenue Growth (%)
TransAlta Renewables Inc. (RNW.TO) 15.73CAD 4.1 80.0
Vestas Wind Systems A/S (VWDRY) 31.53 18.6 73.9
Northland Power Inc. (NPI.TO) 27.41CAD 4.9 10.5
Source: Investopedia; Yahoo! Finance; TransAlta Renewables, Vestas Wind Systems, Northland Power Investor Relations
  • TransAlta Renewables Inc.: See company description above.
  • Vestas Wind Systems A/S: Danish company Vestas Wind Systems develops, makes, sells, and services wind turbines for use in energy generation applications. The company recently announced a commitment to become carbon-neutral by 2030.
  • Northland Power Inc.: See company description above.

Wind Stocks with the Most Momentum

These are the wind stocks that had the highest price change the last 12 months.

Wind Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Price Change (%)
Boralex Inc. (BLX.TO) 25.63CAD 2.5 42.0
TransAlta Renewables Inc. (RNW.TO) 15.73CAD 4.1 41.3
Pattern Energy Group Inc. (PEGI) 26.74 2.6 37.1
First Trust Global Wind Energy ETF (FAN) N/A N/A 22.3
S&P 500 (SPY) N/A N/A 27.4
Source: Investopedia; Yahoo! Finance
  • Boralex Inc.: Canadian energy company Boralex is focused on renewable power sources including wind, thermal, solar, and hydroelectric. This firm manages facilities in Canada, parts of the U.S., and France.
  • TransAlta Renewables Inc.: See company description above.
  • Pattern Energy Group Inc.: Pattern Energy Group owns and operates more than two dozen wind power facilities across North America and Asia. In January 2020, the company announced the beginning of construction on a facility in Texas.

Source: Investopedia

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