Top 3 Stocks to Benefit from US Energy Movement: Experts’ Recommendations

The basics of AI electric vehicles!A recommendation from the “Mother of New Industries” in US stocks (Pool via Getty Images)

The rise in US stocks in recent years has been driven by one wave after another, such as electric vehicles, artificial intelligence, etc., along with the Biden administration’s earlier passage of the “Inflation Reduction Act ,” which includes accelerating the transition to green. American energy and manufacturing The subsidy measures for different technologies are all directed to one industry – electric power infrastructure. If the industries mentioned are to develop, they will all need electricity.

Download Yahoo Finance App

US stocks and foreign currencies can be viewed at any time on real-time quotes and news from many countries

The energy transition includes a variety of technologies, from renewable energy sources such as solar and wind to grid upgrades to meet increased electricity demand. Although rising interest rates put pressure on the clean energy industry last year, growing power demand in various fields is expected to boost the clean technology industry.

Here are three stocks analysts believe could benefit from the US energy movement.

The first sun (FSLR)

In the renewable energy sector, First Solar has 31 “buy” ratings, 6 “hold” ratings and no “sell” ratings. The Tempe, Arizona company is the largest solar module supplier in the US and the domestic manufacturer, and the backlog of sales orders will expand beyond 2027.

“FSLR is in a leading position and has built a strong domestic manufacturing supply chain, making it a major beneficiary of the Inflation Reduction Act. As a domestic producer, FSLR can also limit high-cost shipping and import tariffs and risks.” avoid ” wrote Christopher Dendrinos at RBC.

Goldman Sachs analysts are also bullish on the stock, believing that the stock will benefit from major projects in the utility industry, including data centers and AI to provide additional power demand.

“Businesses may be tempted to use their solar panels to get the ‘Made in America’ part.” In some cases, FSLR even works directly with companies that own data centers, such as Microsoft (MSFT)) cooperation,” said Goldman Sachs analyst Carly Davenport and others.

First Solar is up 14% year to date.

Vernova (GEV)

The wind and natural gas turbine maker was recently spun off from General Electric (GE). The company impressed analysts last month when it released its first results as an independent company.

“The GEV product portfolio covers the value chain from power generation to transmission to grid management,” said RBC’s Dendrinos “The GEV navigation market is expected to double by 2030 compared to 2022, benefiting from power demand increasing grid complexity.” The bank gave the stock a target price of $160 and rated it “outperform.”

Goldman Sachs also gave the stock a “buy” rating and a target price of $268. “As electricity demand accelerates, GEV is expected to benefit from long-term growth trends. “

Vernova has gained 16% this year.

Power of the Next Century (HEAVEN)

The $147 billion company provides renewable, natural gas and nuclear power to retail and commercial homes.

“The recovery of US industry, supported by public policy, will drive electricity demand,” NextEra President John Ketchum said on an April earnings call.

Analysts believe that the increase in power consumption caused by AI and data centers is a key growth driver.

“NextEra’s unregulated renewable energy business, NextEra Energy Resources, is uniquely positioned to take advantage of data center growth,” Goldman’s Davenport wrote.

The stock has 17 “buy” ratings, 5 “hold” ratings, and 1 “sell” rating. It has risen 16% this year.