PODCAST: Best Solar Energy Stocks PLUS Much More...

Best Solar Energy Stocks PLUS Much More includes. Shoals Technologies Group, Inc., Brookfield Renewable Partners L.P., Clearway Energy, Inc. Sunnova Energy International Inc., First Solar, Inc., SolarEdge Technologies, Inc., Enphase Energy, Inc., Sunrun Inc., NextEra Energy, Inc., Tesla, Inc., Fidelity Select Technology Portfolio, New Alternatives Fund Class A, and Rize Environmental Impact 100 UCITS ETF

PODCAST: Best Solar Energy Stocks PLUS Much More

Transcript & Links, Episode 69, October 22, 2021

Best Solar Energy Stocks PLUS Much More… Hello, Ron Robins here. Welcome to podcast episode 69 published on October 22, titled “Best Solar Energy Stocks PLUS Much More…” — and presented by Investing for the Soul. investingforthesoul.com is your site for vital global ethical and sustainable investing news, commentary, information, and resources.

Remember that you can find a full transcript, links to content – including stock symbols, quotes, and bonus material – at this episode’s podcast page located at investingforthesoul.com/podcasts.

Now, just a reminder. I do not evaluate any of the stocks or funds mentioned in this podcast. The recommendations are by the article’s authors. Furthermore, if you’re concerned about the ESG and sustainability ratings of any stock or fund included in this podcast, check your broker’s online site for such information.

If your broker doesn’t have this information, signup for free with Morningstar and you can gain access to company and fund ESG-sustainability ratings. Please note, I receive no compensation from Morningstar or anyone else covered in these podcasts.

If any terms are unfamiliar to you, simply Google them.

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1. Best Solar Energy Stocks PLUS Much More

So, I’m going to start with this article titled 10 Best Solar Energy Stocks to Buy Today by TRISH NOVICIO in Hedge Funds, News. Here are some quotes from Ms. Novicio.

“Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017…

10. Shoals Technologies Group, Inc. (NASDAQ: SHLS)

Hedge Fund Holders: 12

The Tennessee-based solar company sells junction and splice boxes, inline fuses, cables, and wireless monitoring systems. (It’s) electrical balance of system (EBOS) products are used in building solar energy projects…

On July 21, JPMorgan analyst Mark Strouse kept an Overweight rating on Shoals Technologies Group, Inc. and increased his price target for the stock to $46 from $42…

9. Brookfield Renewable Partners L.P. (NYSE: BEP)

Hedge Fund Holders: 20

The company supplies electricity internationally through renewable energy sources such as solar and wind energy.

On September 22, Raymond James analyst Frederic Bastien upgraded Brookfield Renewable Partners L.P. to Outperform from Market Perform and increased his price target for the stock to $44 from $41.

8. Clearway Energy, Inc. (NYSE: CWEN)

Hedge Fund Holders: 21

The New Jersey-based energy company is one of the biggest renewable energy providers in the US with over 4,700 net MW of installed wind and solar generation projects.

On August 26, UBS analyst William Grippin initiated a Buy rating on Clearway Energy, Inc. with a price target of $36 per share.

Shares of Clearway Energy, Inc. jumped 2.08% on September 22 as the solar company announced its second agreement with Toyota Motor Corporation (NYSE: TM) North America to supply power to its manufacturing facility in Mississippi.

7. Sunnova Energy International Inc. (NYSE: NOVA)

Hedge Fund Holders: 25

The Houston-based solar power company sells residential solar energy systems and storage solutions.

On August 31, Wolfe Research analyst Steve Fleishman initiated an Outperform rating on Sunnova Energy International Inc. with a price target of $50 per share.

6. First Solar, Inc. (NASDAQ: FSLR)

Hedge Fund Holders: 31

The Arizona-based solar energy firm sells photovoltaic (PV) solar panel solutions.

On August 2, the stock gained 2.8% after Susquehanna upgraded First Solar, Inc. to Positive from Neutral and raised its price target to $120 from $89…

On September 21, Morgan Stanley analyst Stephen Byrd kept an Underweight rating on First Solar, Inc. and increased his price target for the stock to $61 from $57.

5. SolarEdge Technologies, Inc. (NASDAQ: SEDG)

Hedge Fund Holders: 37

The Israeli-based solar energy company develops and sells residential solar systems which include power optimizers, inverters, storage, and a monitoring platform. 

On August 31, Wolfe Research analyst Steve Fleishman initiated an Outperform rating on SolarEdge Technologies, Inc.

4. Enphase Energy, Inc. (NASDAQ: ENPH)

Hedge Fund Holders: 44

The company manufactures and sells microinverters and energy storage for residential and enterprise solar panel systems. 

On September 21, KeyBanc analyst Sophie Karp initiated an Overweight rating on Enphase Energy, Inc. with a price target of $179 per share…

3. Sunrun Inc. (NASDAQ: RUN)

Hedge Fund Holders: 45

The company manufactures and sells residential solar energy systems in the US…

On September 9, Needham analyst Vik Bagri initiated a Buy rating on Sunrun Inc. with a price target of $75 per share.

2. NextEra Energy, Inc. (NYSE: NEE)

Hedge Fund Holders: 59

The company distributes electricity in North America from solar, wind, and nuclear energy. The company also operates coal and natural gas facilities.

On July 13, Credit Suisse analysts initiated coverage of NextEra Energy, Inc. with an Outperform rating with a price target of $85 per share. 

1. Tesla, Inc. (NASDAQ: TSLA)

Hedge Fund Holders: 60

The company delivered 201,204 electric vehicles in the second quarter of 2021, up 121% year over year. Additionally, Tesla, Inc. also offers solar panels and energy storage…

In the Q2 2021 investor letter of Worm Capital LLC, the fund mentioned Tesla, Inc… Here is (in part) what the fund said:

‘Tesla alone is a vertically integrated hardware and software business developing state-of-the-art manufacturing techniques that will revolutionize the auto industry (i.e. its Giga Presses, 4680 cells, etc.)… We anticipate it will eventually be the largest company in the world.’” End quotes.

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4 Funds to Buy In Line With Thematic Trends in Q4

My next article is another fine piece of research from Zacks Equity Research. It’s titled 4 Funds to Buy In Line With Thematic Trends in Q4 and appeared on Nasdaq.com. They mostly align with sustainable investing—though not specifically. Here are their comments on these funds.

Quote “We have selected four funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy)…

1) Fidelity Select Technology Portfolio (FSPTX)

Aims for capital appreciation. It invests primarily in equity securities, especially common stocks of companies engaged in offering, using, or developing products, processes, or services that will provide or benefit significantly from technological advances and improvements…

This non-diversified has returned 30.7% and 31.8% in the past three and five years, respectively…

[This fund] has an annual expense ratio of 0.69% versus the category average of 1.05%.

2) New Alternatives Fund Class A (NALFX)

… seeks long-term capital growth with income as its secondary objective. It primarily invests in common stocks of companies and even in other equity securities such as real estate investment trusts and American Depository Receipts.

(The) New Alternatives Fund Class A has three and five-year returns of 29.3% and 19.6%, respectively…

(The fund) has an annual expense ratio of 0.96% compared to the category average of 1.26%.

3) Parnassus Mid Cap Growth Fund - Investor (PARNX)

… aims for capital appreciation. The fund invests a majority of assets in mid-sized growth companies.

(The) Parnassus Mid Cap Growth Fund - Investor has returned 17.7% and 15.7% for the three and five-year periods, respectively…

(This fund) has an annual expense ratio of 0.83%, which is below the category average of 1.09%.

4) Fidelity Select Software & IT Services Portfolio (FSCSX)

… aims for capital appreciation. The non-diversified fund invests most assets in common stocks of companies engaged in research, design, production or distribution of products or processes related to software or information-based services.

(The) Fidelity Select Software & IT Services Portfolio has returned 27.3% and 28.3% over the past three and five-year period, respectively…

(This fund) has an annual expense ratio of 0.70% versus the category average of 1.05%.” End quotes

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Five top impact ETFs

The next article is from the UK and on the etfstream.com site. It’s titled Five top impact ETFs and is by Jamie Gordon. I’ll mention the names of the ETFs followed by brief quotes from Mr. Gordon on each ETF. Quote.

“1. Rize Environmental Impact 100 UCITS ETF (LIFE) 

Came to market in July as a one-stop shop for exposure to several segments of sustainable industry. 

Carrying a total expense ratio (TER) of 0.55%, (this ETF) tracks the Foxberry SMS Environmental Impact 100 index of 100 companies and provides exposure to 100 companies involved in clean water, energy efficiency, circular economy solutions, renewable energy equipment, pollution control, electric vehicles, nature-based solutions, climate resilience, hydrogen and alternative fuels…

It touches on each of the objectives set out in the EU Taxonomy for Sustainable Activities. 

2. iClima Global Decarbonisation Enablers UCITS ETF (CLMA)   

With a fee of 0.65% and tracking the iClima Global Decarbonisation Enablers index of 162 stocks, (this fund) offers 2%-capped exposure to companies involved in renewable energy, green transportation, water and waste improvements, decarbonisation enabling solutions and sustainable products.

What keeps it from the top spot on our list is the inclusion of holdings such as the London Stock Exchange Group (LSEG.L) and Uber Technologies (UBER), whose connection to impact are more tenuous.

3. Lyxor Green Bond UCITS ETF (CLIM) 

The oldest product on our list is the Lyxor Green Bond UCITS ETF which launched in February 2017… 

With a TER of 0.25%, (this fund) tracks the Solactive Green Bond EUR USD IG index of 578 euro and US dollar-denominated investment-grade green bonds issued by sovereigns, supranationals, development banks and corporates. 

Aside from being Europe's first green bonds ETF, (the fund) has $457m assets under management (AUM)… which is considerable versus its counterparts…

The constituents in the Lyxor Green Bond UCITS ETFs underlying index have all been defined as eligible for inclusion by the non-profit organisation Climate Bonds Initiative.

4. Invesco Global Clean Energy UCITS ETF (GCLE)

… is the newest and most diversified clean energy thematic ETF in Europe. 

Mirroring its equivalent US product, Invesco’s clean energy play physically replicates the WilderHill New Energy Global Innovation index of 126 stocks involved in the clean energy value chain, including energy generation, lower CO2-renewables, conservation and efficiency.

(This fund is) equally reweighted and rebalanced quarterly to reduce the concentration issues suffered by Europe’s most popular clean energy ETF, the iShares Global Clean Energy UCITS ETF (INRG). 

Additionally, it has a TER of 0.60.

5. L&G Healthcare Breakthrough UCITS ETF (DOCT) 

Charging a relatively low fee for a thematic product (0.49%) (it) tracks the ROBO Global Healthcare Technology and Innovation index of 84 stocks in the medical instruments, diagnostics, process automation, precision medicine, genomics, telehealth, data analytics, robotics and regenerative medicine industries.

(The) L&G Healthcare Breakthrough UCITS ETF is considered impact-eligible by impact investing app Circa500 and healthcare innovation is certainly a social good.” End quotes.

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Honorable Mentions

1. Title A Multi-Asset Strategy With ESG Can Help Mute Short-Term Volatility by ETF Trends. Quote “One ETF that's worth a look is the FlexShares STOXX Global ESG Impact Index Fund (ESGG)… in the U.S. can opt for the FlexShares STOXX US ESG Impact Index Fund (ESG)” End quote.

2. Title Why Plug Power and Other Alternative Energy Stocks Surged Today by Howard Smith. Quote “Shares of hydrogen fuel cell companies like Plug Power (NASDAQ: PLUG) and Bloom Energy (NYSE: BE) had jumped as much as 4% and 7%, respectively, in early trading. And the stock of solar technology company Enphase Energy (NASDAQ: ENPH) was also on the rise.” End quote.

3. Title 3 Leading Infrastructure Stocks to Buy in 2021 and Beyond by Matthew DiLallo appearing on fool.com. Quote “Three infrastructure stocks that stand out as ideally positioned to profit in 2021 and beyond are Atlantica Sustainable Infrastructure (NASDAQ: AY), Brookfield Infrastructure (NYSE: BIP)(NYSE: BIPC), and Crown Castle (NYSE: CCI).” End quote.

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Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast: “Best Solar Energy Stocks PLUS Much More…“

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Talk to you next on November 5. Bye for now.

© 2021 Ron Robins, Investing for the Soul.