Following a record-setting performance in 2020, most stocks in the clean-energy sector are expected to soar again this year as governments worldwide take steps to transition their economies to a sustainable energy base. While the clean-energy sector involves primarily solar and wind energy, there other energy types to be embraced, such as biomass, geothermal, and hydropower. Even lithium mining companies will play an important role in a sustainable-energy future because lithium is used in the production of batteries for electric vehicles (EVs)…
The capacity of renewable energy is set to expand 50% between 2019 and 2024, led primarily by solar energy. In fact, the price of solar energy has fallen by 89% in the past 10 years. Also, EVs are expected to become much more common in the near future and, in many ways, 2021 is expected to be a spectacular year for the EVs.
This, along with President-elect Joe Biden’s ambitious plans regarding the reduction of global warming, has helped cleantech stocks like Tesla, Inc. (TSLA – Get Rating), Sociedad Quimica y Minera S.A. (SQM – Get Rating), Ballard Power Systems, Inc. (BLDP – Get Rating), and Canadian Solar Inc. (CSIQ – Get Rating) hit their all-time highs. Because these stocks are well positioned to ride the clean energy wave, we think it wise to keep a close eye on them for appropriate buying opportunities.
Tesla, Inc. (TSLA – Get Rating)
The EV manufacturer TSLA needs no introduction. The company operates primarily through two segments — automotive, and energy generation and storage. TSLA Co-founder and CEO of TSLA Elon Musk became the world’s richest man on Thursday on the Bloomberg Billionaires Index, a ranking of the world’s 500 wealthiest people. surpassing Jeff Bezos, the founder of Amazon.com, Inc. (AMZN). TSLA stock surged 7.9% yesterday, hitting its all-time high of $816.99, based on hopes around a “blue” U.S. Senate.
TSLA delivered 180,570 vehicles in the fourth quarter (ended December 31, 2020). For the third quarter, ended September 30, 2020, TSLA’s total revenue increased 39.2% year-over-year to $8.8 billion. The energy storage business saw record deployments of 759 MWh in the third quarter. Non-GAAP net income has increased 155.6% year-over-year to $874 million, yielding EPS of $0.76, representing a 105.4% year-over-year increase.
Analysts expect TSLA’s revenue to increase 37.6% for the quarter ended December 31, 2020, 61.6% for the quarter ending March 2021, and 46.7% in 2021. The company’s EPS is expected to increase 124.4% for the quarter ended December 31, 2020, 69.5% in 2021, and at a rate of 396.7% per annum over the next five years. TSLA has an impressive earnings surprise history with the company beating consensus EPS estimates in each of the trailing four quarters.
Elon Musk, who is quite active on Twitter (TWTR) tweeted in December that those who had purchased the company’s EVs by December 31, 2020 would get three months of the company’s Full Self-Driving mode free of charge. TSLA was included in the S&P 500 on December 21. The company also recently signed a new long-term agreement with Panasonic Corporation for battery cells made in Japan that spans October 1, 2020 -March 31, 2022.
How does TSLA stack up for the POWR Ratings?
A for Trade Grade
A for Buy & Hold Grade
A for Peer Grade
A for Industry Rank
A for Overall POWR Rating
You cannot ask for better. The stock is also ranked #1 of 49 stocks in the Auto & Vehicle Manufacturers industry.
Sociedad Quimica y Minera S.A. (SQM – Get Rating)
Based in Santiago, Chile, SQM is a producer of potassium nitrate and iodine. The company produces specialty plant nutrients, iodine derivatives, lithium and its derivatives, potassium chloride, potassium sulfate, and certain industrial chemicals. It mainly operates through six segments —specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services.
The company’s lithium and derivatives business line saw sales volume increase nearly 56% year-over-year to 17,700 metric tons in the third quarter (ended September 30, 2020) . Gross profit for this segment accounted for nearly…
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