Top Wind Energy Stocks for Q3 2022

IBDRY, NPI.TO, and NEE are top for value, growth, and performance, respectively

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 notes that the global wind industry has increased dramatically in recent years. The industry has different facets, 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.

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 -11.9% over the past 12 months, well below the Russell 1000's total return of -1.6%. These market performance numbers and all statistics in the tables below are as of June 2, 2022.

Here are the top three wind stocks with the best value, fastest growth, and the best performance.

Best Value Wind Energy 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 Energy Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Iberdrola SA (IBDRY) 46.89 73.4 17.5
Northland Power Inc. (NPI.TO) CA$38.31 CA$8.9 27.4
TransAlta Renewables Inc. (RNW.TO) CA$17.43 CA$4.7 37.1

Source: YCharts

  • Iberdrola SA: Iberdrola is a Spain-based multinational electric utility company. The company engages in the generation, distribution, and trading of electricity. It specializes in clean energy, including onshore and offshore wind, and solar energy.
  • Northland Power Inc.: Northland Power is a Canada-based global power producer focused on the production of electricity from clean renewable resources. The company operates both onshore and offshore wind facilities, efficient natural gas facilities, and solar energy facilities. Northland Power reported Q1 2022 earnings on May 10. Net income grew 90% on solid revenue growth year-over-year (YOY). Higher production across all of the company's facilities helped to drive growth.
  • 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. On May 3, the company announced monthly dividends of $0.07833 per share for July, August, and September. The dividends are payable on July 29, Aug. 31, and Sept. 29, respectively.

Fastest Growing Wind Energy Stocks

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 (%)
Northland Power Inc. (NPI.TO) CA$38.31 CA$8.9 102.0 13.4
Vestas Wind Systems A/S (VWDRY) 8.50 25.8 N/A (see company description) 17.9
TransAlta Renewables Inc. (RNW.TO) CA$17.43 CA$4.7 -21.1 13.5

Source: YCharts

  • Northland Power Inc.: See above for company description.
  • Vestas Wind Systems A/S: Vestas Wind Systems is a Denmark-based wind energy company. It develops, manufactures, and installs wind turbines that produce electricity. The company also operates a service segment that provides service contracts, spare parts, and related activities. On May 2, the company reported Q1 2022 results. Net losses widened considerably YOY, even as revenue rose, fueled by higher wind turbine deliveries in Europe and the U.S. EPS was negative for the most recent quarter, making a growth figure impossible to calculate for the chart above.
  • TransAlta Renewables Inc.: See above for company description.

Wind Energy Stocks With the Best Performance

These are the wind energy stocks that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at.

Wind Energy Stocks With the Best Performance
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
NextEra Energy Inc. (NEE) 78.52 154.3 10.2
Boralex Inc. (BLX.TO) CA$39.65 CA$4.1 8.9
Northland Power Inc. (NPI.TO) CA$38.31 CA$8.9 -4.3
Russell 1000 N/A N/A -1.6
First Trust Global Wind Energy ETF (FAN) N/A N/A -11.9

Source: YCharts

  • NextEra Energy Inc.: NextEra Energy is a holding company that provides electric power and energy infrastructure products and services through subsidiaries. The company operates a diversified clean energy business and provides electric utility services. NextEra declared a quarterly dividend of $0.425 per common share on May 19. The dividend is payable on June 15 to shareholders of record as of May 31, 2022.
  • 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. Boralex reported on June 2 that the New York State Energy Research and Development Authority selected five of its solar farms for renewable energy certificates. These solar farms will total 540 megawatts (MW) of electricity generation, and will produce enough power to supply the equivalent of more than 141,000 homes annually.
  • Northland Power Inc.:  See above for company description.

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Article Sources
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  1. Global Wind Energy Council. "Global Offshore Wind Report 2021."

  2. YCharts. "Financial Data."

  3. Northland Power Inc. "Northland Power Reports First Quarter 2022 Results and Releases Its Annual Sustainability Report."

  4. TransAlta Renewables Inc. "TransAlta Renewables Declares Dividends."

  5. Vestas Wind Systems A/S. "Interim financial report First Quarter 2022," Pages 4 and 6.

  6. NextEra Energy Inc. "NextEra Energy board declares quarterly dividend."

  7. Boralex Inc. "Five Boralex Solar Farms Totaling 540 MW of Electric Generation and 77 MW of Storage Selected Under a Request for Proposals in New York State."

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