NEE, RNW.TO, and TPIC are top for value, growth, and momentum
Wind energy is part of the fast-growing renewable energy industry, which is designed to produce energy with lower carbon emissions and less pollution. The Global Wind Energy Council forecasts that offshore wind sources, for example, will increase dramatically in the coming years. There are different facets to the industry, such as developing and managing wind farms, producing and distributing the electricity generated by wind power, and manufacturing, distributing, and maintaining machinery. The size of competitors ranges from small players to large, multinational companies that operate their wind energy business as a division or subsidiary. For instance, General Electric Co. (GE) has a Renewable Energy division.
The wind energy sector, represented by the First Trust Global Wind Energy ETF (FAN), outperformed the broader stock market over the past year. FAN provided a total return of 58.1% over the past 12 months, above the Russell 1000’s total return of 44.5%. These market performance numbers and all statistics in the tables below are as of June 14, 2021.
Here are the top 3 wind stocks with the best value, fastest growth, and the most momentum.
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 Energy Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|NextEra Energy Inc. (
|Northland Power Inc. (
|Vestas Wind Systems A/S (
- NextEra Energy Inc.: NextEra Energy is a clean energy company that provides sustainable energy generation and distribution services. It generates electricity through wind, solar, and natural gas. Through its subsidiaries, the company also operates several nuclear power units. NextEra Energy announced in April financial results for Q1 of its 2021 fiscal year (FY), the three-month period ended March 31, 2021. Net income attributable to NextEra Energy shareholders (which excludes non-controlling interests) rose 295.7% despite a 19.2% decline in revenue. Other expenses were significantly lower in the recent quarter, contributing to total other income and higher net income compared to total other deductions and lower net income in the year-ago quarter.
- Northland Power Inc.: Northland Power is a Canada-based power producer focused on building and operating clean and green global power infrastructure assets. Its facilities produce electricity from clean-burning natural gas and renewable resources, including wind, solar, and efficient natural gas.
- Vestas Wind Systems A/S: Vestas Wind Systems is a Denmark-based wind energy company that designs, manufactures, installs, and services wind turbines that generate electricity. The company serves customers worldwide.
These are the top wind energy stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Growing Wind Energy Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|TransAlta Renewables Inc. (
|American Superconductor Corp. (
|15.09||0.4||N/A (see company description)||16.7|
|Siemens Gamesa Renewable Energy SA (
|6.3||21.3||N/A (see company description)||15.8|
- TransAlta Renewables Inc.: TransAlta Renewables is a Canada-based power generation company. The company owns and operates renewable power generation facilities, including wind, hydro, and gas. TransAlta Renewables announced in mid-May financial results for Q1 FY 2021. Net earnings rose 1,633.3% on revenue growth of 14.5%. The significant boost to earnings was primarily due to higher finance income from investments in the company’s subsidiaries, foreign exchange gains, and unrealized foreign exchange losses recognized in the prior period.
- American Superconductor Corp.: American Superconductor, which conducts business as AMSC, provides megawatt-scale renewable energy solutions. It provides wind turbine electronic controls and systems, and offers engineering services to reduce the cost of wind energy. The company also offers engineering planning services and grid systems to optimize network reliability, efficiency, and performance. AMSC announced in early May that it has acquired Neeltran Inc., a supplier of rectifiers and transformers to industrial customers. AMSC paid a total consideration of about $16.4 million. Because the company generated a net loss in the most recent quarter, we cannot calculate an EPS growth rate for the table above.
- Siemens Gamesa Renewable Energy SA: Siemens Gamesa Renewable Energy is a Spain-based global supplier of wind power solutions. The company owns both offshore and onshore wind power generation systems, manufactures wind turbines, turbine gearboxes, and other related equipment, and offers related services. Because the company generated a net loss in the most recent quarter, we cannot calculate an EPS growth rate for the table above.
These are the wind energy stocks that had the highest total return over the last 12 months.
|Wind Energy Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|TPI Composites Inc. (
|American Superconductor Corp. (AMSC)||15.09||0.4||109.3|
|Siemens Gamesa Renewable Energy SA (GCTAY)||6.28||21.3||88.1|
|First Trust Global Wind Energy ETF (FAN)||N/A||N/A||58.1|
- TPI Composites Inc.: TPI Composites is a global manufacturer of composite wind blades for the wind energy market. The company also provides services related to its wind blades and offers composite product solutions to the transportation market. TPI Composites announced in early May financial results for Q1 FY 2021, which ended March 31, 2021. The company’s net loss widened to $1.8 million from $0.5 million in the year-ago quarter. Net sales grew 13.5%. Significantly higher other expenses and a much lower income tax benefit compared to the same quarter a year-ago contributed to a much greater loss in the recent quarter.
- American Superconductor Corp.: See above for company description.
- Siemens Gamesa Renewable Energy SA: See above for company description.
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Global Wind Energy Council. “Global Offshore Wind Report 2020.” Accessed June 15, 2021.
YCharts. “Financial Data.” Accessed June 15, 2021.
NextEra Energy Inc. “NextEra Energy reports first-quarter 2021 financial results,” Pages 6 & 7. Accessed June 15, 2021.
TransAlta Renewables Inc. “TransAlta Renewables Reports First Quarter 2021 Results and Closes Acquisition of 303 MW Asset Portfolio including 274 MW of Wind Capacity from TransAlta.” Accessed June 15, 2021.
American Superconductor Corp. “AMSC Extends New Energy Power Systems Product Offerings with the Acquisition of Neeltran, Inc.” Accessed June 15, 2021.
American Superconductor Corp. “AMSC Reports Fourth Quarter and Full Fiscal Year 2020 Financial Results and Provides Business Outlook.” Accessed June 15, 2021.
Siemens Gamesa Renewable Energy SA. “Activity Report Second quarter FY 2021,” Page 7. Accessed June 15, 2021.
TPI Composites Inc. “TPI Composites, Inc. Announces First Quarter 2021 Earnings Results – Operational Execution Fuels Double-Digit Net Sales Growth.” Accessed June 15, 2021.