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), underperformed the broader stock market over the past year. FAN provided a total return of 27.9% over the past 12 months, above the Russell 1000's total return of 37.1%. These market performance numbers and all statistics in the tables below are as of Sept. 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|
|Vestas Wind Systems A/S (VWDRY)||13.71||41.5||36.9|
|TransAlta Renewables Inc. (RNW.TO)||CA$19.80||CA$5.3||39.7|
|Northland Power Inc. (NPI.TO)||CA$41.11||CA$9.3||47.8|
- 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.
- 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 early September that it has agreed to acquire a 122 megawatt portfolio of operating solar facilities located in North Carolina for approximately $96.7 million from a fund managed by Copenhagen Infrastructure Partners. The transaction is expected to close by the end of 2021.
- 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. The company announced in August that it has completed its previously announced acquisition of a Spanish operating portfolio of onshore renewable projects from a fund sponsored by Plenium Partners and Bankinter SA. The assets acquired include onshore wind, solar PV, and concentrated solar. Northland Power paid 348 million euros ($411 million) in cash and assumed debt of 716 million euros ($846 million) to complete the transaction.
These are the top wind energy stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Growing Wind Energy Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|TPI Composites Inc. (TPIC)||35.82||1.3||N/A (see company description)||22.7|
|TransAlta Renewables Inc. (RNW.TO)||CA$19.80||CA$5.3||-18.2||-10.7|
|Boralex Inc. (BLX.TO)||CA$39.13||CA$4.0||N/A (see company description)||21.5|
- 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 financial results for Q2 of its 2021 fiscal year (FY), ended June 30, 2021. The company's net loss narrowed to $39.8 million from $66.1 million in the year-ago quarter as net sales grew 22.7%. Because the company reported negative EPS in the most recent quarter, an EPS growth rate could not be calculated for the table above.
- TransAlta Renewables Inc.: See above for company description.
- Boralex Inc.: Boralex is a Canada-based electricity producer engaged in the development, construction, and operation of renewable energy power stations. The company operates wind, hydroelectric, thermal, and solar segments. Because the company reported negative EPS in the most recent quarter, an EPS growth rate could not be calculated for the table above.
These are the wind energy stocks that had the highest total return over the last 12 months.
|Wind Energy Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|General Electric Co. (GE)||100.38||110.2||104.9|
|Vestas Wind Systems A/S (VWDRY)||13.71||41.5||37.8|
|TransAlta Renewables Inc. (RNW.TO)||CA$19.80||CA$5.3||33.1|
|First Trust Global Wind Energy ETF (FAN)||N/A||N/A||27.9|
- General Electric Co.: General Electric sells a diverse range of technology and financial products and services. It offers aircraft engines, water processing, household appliances, industrial products, and business and consumer financing. It also offers power generation, including renewable energy generation such as wind and hydro. GE announced in late July financial results for Q2 FY 2021, ended June 30, 2021. The company's net loss attributable to common shareholders narrowed to $1.2 billion from $2.2 billion in the year-ago quarter. Total revenues grew 8.8% YOY.
- Vestas Wind Systems A/S: See above for company description.
- TransAlta Renewables Inc.: See above for company description.
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Global Wind Energy Council. "Global Offshore Wind Report 2020." Accessed Sept. 15, 2021.
YCharts. "Financial Data." Accessed Sept. 15, 2021.
TransAlta Renewables Inc. "TransAlta Renewables Announces the Acquisition of a Fully Contracted 122 MW Solar Portfolio in North Carolina." Accessed Sept. 15, 2021.
Northland Power Inc. "Northland Power Announces Closing of Spanish Onshore Renewables Portfolio." Accessed Sept. 15, 2021.
XE.com Inc. "1 EUR to USD - Convert Euros to US Dollars." Accessed Sept. 15, 2021.
TPI Composites Inc. "TPI Composites, Inc. Announces Second Quarter 2021 Earnings Results – Delivers Double Digit Top Line Growth in a Challenging Operating Environment." Accessed Sept. 15, 2021.
Boralex Inc. "Boralex adds 743 MW to its project pipeline and increases its EBITDA(A) by 23% in Q2-2021," Page 2. Accessed Sept. 15, 2021.
General Electric Co. "Form 10-Q for the quarterly period ended June 30, 2021," Page 28. Accessed Sept. 15, 2021.