Wind Energy has grown rapidly in the past years. The growth of wind energy is expected to keep growing given the recent increase in demand for wind energies products. In 2020 wind turbines generated 8.4% of the country’s power, which is twice the power generated in 2014. In 2022, wind industries are expected to make a good impact in the power sector, especially with the decline in cost and encouragement from the government power sectors for the new wind power growth. The demand for wind energy will keep rising, and wind energy-based companies will continue to profit from the growth. In this article, we will discuss the 5 best wind energy stocks to buy.
The wind energy companies are divided into 2 different sectors. They include:
- The Wind Power manufacturers
- Wind turbine and component manufacturers
The wind power manufacturers deal with the production and operations of turbines that give rise to wind energy, which is sold to consumers. Many wind developers produce power based on the government-regulated rate or long-term agreements that produce constant income.
Wind turbine and component manufacturers deal with improving the sales of wind energy, the increase in the demand for wind energy supply adds to these company’s benefits.
However, most of these wind energy companies do not trade on the U.S. stock exchanges. This leaves investors with fewer wind energy stocks to invest in.
This is why investors are advised to do a thorough and wide survey when in search of wind stocks. Listed below are the best wind energy stocks to consider buying this 2022.
This electric company is a renewable energy company that focuses on the healthcare, aviation, and energy industries. General Electric is in the works of dissolving its firm into three different sectors. The company has plans of dividing into a healthcare facility in 2023, renewable energy, power, and digital facility in 2024, and the remaining field will be focused on the aviation sector.
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General Electric energy is an energy industrial firm that is one of the top global heads that deals with the development, installation, and operation of wind turbines. The company has managed the installation of turbines in over 49,000 units worldwide. These installed turbines generate a Continuous income for the company. The General Electric company also gives investors great insight on how the company will expand, and what this expansion will look like, plus the expected results. The company currently has many wind projects underway, and these projects are slated to generate continuous income and growth for the company.
Siemens Gamesa Renewable Energy
Siemens Gamesa is one of the top wind energy companies located in Spain. The company deals in the production, installation, and offshore and onshore services for wind turbines. The company has recorded over 99 GW capacity installed globally. The company is presently patterning with Simens Energy (OTC:SMEG.F), on the manufacturing of green hydrogen with the use of wind power.
In recent years Siemens Energy has had financial instability, this is due to its dispute with General Electric, the increase in the price of steel, and dispute with onshore wind factories. However, the company has shown significant growth, and the company is slated to have a good record in the coming years. This is coming after the International Trade Commission debunked almost all of GE’s claims meted against Simens Energy in 2022. Despite all these issues, Simens has managed to maintain a good profitability outlook and the stock is a strong buy because it has good profit potential.
Global X Wind Energy ETF
The Global X Wind Energy ETF deals on wind energy stocks, the company was launched in 2021. This exchange-traded fund comprises firms that produce wind energy technology, create wind energy turbines, and install wind into energy systems. The exchange-traded funds integrate the use of environmental, social, and governance (ESG) screens and it obeys ESG representative voting actions to aid in facilitating favorable changes.
As of 2022, the ETF covered approximately 30 wind energy stocks. 40% of the ETF comprises industrial companies that develop wind turbines, 43% comprises Chinese-listed stocks, while the remaining 7% is made up of fundamental materials used by the manufacturers.
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First Trust Global Wind Energy ETF
First Trust Global Wind Energy is also an exchange-traded fund that deals in the investment of wind energy stocks. The ETF invests in mainly foreign-listed wind stocks. The ETF’s top 10 investments consist of Siemens Gamesa Renewable Energy and Vestas Wind Systems. These companies generate at least above 50% of their income from wind-related actions. The 60% of the ETF covers companies that make up 50% on wind-related actions, while the remaining 40% covers companies with diversified portfolios with some aspect of it based on wind-related activities.
As of 2022, the ETF had about a total of 50 wind energy stocks, the 15% of the ETF comprising Spain-listed stocks. The ETF focus across the wind section makes it good for investors because it has long-term growth potential.
NextEra Energy is one of the top renewable energy firms. The company deals with the biggest electric players in Florida and also a big energy resources facility. The company is one of the biggest firms that deal with the production of wind power globally. In 2022, the company had about 119 wind projects in Canada and the U.S. They produced 18 GW in collective production capacity that would serve about 13.5 million households. 69% of the company’s growth comes from wind energy.
By 2024, the company is expected to develop about 7.9GW of new wind energy, this is due to its active generation of new wind energy projects. The company also has over 1.4 GW of wind constantly powering projects in its sector. These ventures replace former wind turbines and modern, bigger ones that can produce more electricity. NextEra Energy is also a top-tier in the use of battery storage to aid in the reduction of the wind’s intermittency and solar energy properties. The company is a good choice for investors because it has a good profitability outlook.