New Energy Investment Outlook 2022

Renewable Energy Stocks Had A Mixed 2021. Will 2022 Be Better?

January 3rd, 2022 (Trefis)

“…[Renewable Energy Stocks, including U.S.-based solar panel manufacturers, lithium miners, and hydrogen fuel cell producers] had a relatively tough 2021, declining by about 5% over the year, compared to the S&P 500 which gained almost 27%...[R]elatively healthy revenue growth recently, has] been weighed down by the prospect of multiple interest rate hikes, which has made investors sour on high-growth stocks, and also by some regulatory uncertainty, particularly in the U.S. where negotiations on the Build Back Better bill, which planned spending of over $500 billion for the climate and clean energy, is currently stalled…[Some] have also been weighed down by rising commodity prices and supply-chain issues…

click to enlarge

…[T]his recent underperformance could be a buying opportunity. Renewable energy companies stand to benefit considerably from the mounting urgency to tackle climate change. Governments worldwide are likely to accelerate regulation favoring green energy alternatives while also investing more in low-carbon infrastructure.

click to enlarge

The addressable market for renewables is also sizable, as fossil fuels are a multi-trillion dollar industry…Albemarle stock (ALB) has been [a strong] performer over 2021, rising by about 58%. The company is one of the world’s largest producers of lithium, which is used in the batteries that go into electric vehicles and electric storage systems…Sunrun stock (RUN) has been [a weak] performer, with its stock down by about 51% during 2021. The company designs develop, installs, and maintains residential solar energy systems…” click here for more

click to enlarge

Tweet