The wind energy industry is comprised both of a small number of pure-play companies and also big corporations that operate their wind energy business as a division or a subsidiary. One example of the latter is General Electric Co.'s (GE) Renewable Energy division. The wind industry has enormous potential for significant growth, with the International Energy Agency reporting that wind sources ultimately could produce 18 times the global demand for electricity. The First Trust Global Wind Energy ETF (FAN) is a useful benchmark. During the trailing 12-month period, this ETF has outperformed the market by posting a total return of -7.1%, while the S&P 500 has returned -13.3%. All figures are as of March 19, 2020.
Here are the top 3 wind stocks with the best value, the fastest earnings growth, and the most momentum.
Best Value Wind Stocks
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 Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Northland Power Inc. (NPI.TO)||CA$23.90||CA$4.7||14.2|
|TransAlta Renewables Inc. (RNW.TO)||CA$11.89||CA$3.2||17.5|
|Vestas Wind Systems A/S (VWDRY)||23.39||13.7||17.8|
- Northland Power Inc.: Canada-based Northland Power is a diversified energy company with assets in wind, natural gas, and solar. Northland Power announced in March that it would forego the installation of a demonstrator project at its Deutsche Bucht site due to technical issues.
- TransAlta Renewables Inc.: TransAlta Renewables is a Canadian energy company with renewable power generation facilities, including both wind and hydroelectric plants.
- Vestas Wind Systems A/S: Vestas Wind Systems is a company that designs, manufactures, and installs wind turbines used to generate electricity. The company recently won a 36 MW order from Wind Estate A/S, a leading Danish energy company.
Fastest Growing Wind Stocks
These are the wind stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Wind Stocks|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|Vestas Wind Systems A/S (VWDRY)||23.39||13.7||27.1|
|Northland Power Inc. (NPI.TO)||CA$23.90||CA$4.7||4.6|
|Iberdrola SA (IBDRY)||37.10||58.4||-5.7|
- Vestas Wind Systems A/S: See company description above.
- Northland Power Inc.: See company description above.
- Iberdrola SA: Spanish energy company Iberdrola generates and distributes electricity across Europe, North America, and South America. The company focuses in particular on wind energy. Iberdrola's FY 2019 net profit increased by 13% YOY, according to its latest report.
Wind Stocks with the Most Momentum
These are the wind stocks that had the highest total return over the last 12 months.
|Wind Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Price Change (%)|
|Pattern Energy Group Inc. (PEGI)||26.74||2.6||31.5|
|Boralex Inc. (BLX.TO)||CA$23.83||CA$2.3||30.6|
|Iberdrola SA (IBDRY)||37.10||58.4||10.0|
|First Trust Global Wind Energy ETF (FAN)||N/A||N/A||-7.1|
|S&P 500 (SPY)||N/A||N/A||-13.3|
- Pattern Energy Group Inc.: Pattern Energy Group owns and operates more than two dozen wind power facilities across North America and Asia. Pattern Energy recently completed a transaction with Canada Pension Plan Investment Board in which the latter company has acquired all outstanding Pattern Energy common shares for $26.75 per share in cash.
- Boralex Inc.: Canadian energy company Boralex is focused on renewable power sources including wind, thermal, solar, and hydroelectric. The firm manages facilities in Canada, parts of the U.S., and France.
- Iberdrola SA: See company description above.
International Energy Agency. "Wind," Accessed March 22, 2020.
YCharts. "Financial Data," Accessed March 22, 2020.
Northland Power, Inc. "Northland Power Provides an Update on Deutsche Bucht Offshore Wind Project," Accessed March 22, 2020.
Vestas Wind Systems A/S. "Vestas wins repowering order with Danish auction win," Accessed March 22, 2020.
Iberdrola SA. "Iberdrola's Fiscal year 2019 net profit increased by 13% to a record of €3,406 million," Accessed March 22, 2020.
Pattern Energy Group, Inc. "Pattern Energy and Canada Pension Plan Investment Board Complete Transaction," Accessed March 22, 2020.