Top Wind Energy Stocks for Q2 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. For instance, General Electric Co. has a Renewable Energy division.

The wind energy sector, represented by the First Trust Global Wind Energy ETF (FAN), significantly underperformed the broader stock market over the past year. FAN provided a total return of -10.1% over the past 12 months, well below the Russell 1000's total return of 5.6%. These market performance numbers and all statistics in the tables below are as of March 11, 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) 42.66 66.8 15.8
TransAlta Renewables Inc. (RNW.TO) CA$18.48 CA$4.9 36.2
NextEra Energy Inc. (NEE) 79.30 155.7 43.8

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.
  • 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 announced in late February financial results for its 2021 fiscal year (FY), which ended Dec. 31, 2021. Net earnings attributable to the company's common shareholders rose 52.2% compared to the year-ago quarter. Annual revenue grew 7.8%.
  • 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. On Jan. 25, 2022, NextEra Energy announced several senior leadership appointments, including the naming of John Ketchum as the company's president and chief executive officer (CEO). Ketchum has extensive experience working in key executive roles across the company's various businesses. Kirk Crews was also named vice president, finance and chief financial officer (CFO) of the company.

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$41.20 CA$9.3 309.1 29.9
Iberdrola SA (IBDRY) 42.66 66.8 73.7 19.8
TransAlta Renewables Inc. (RNW.TO) CA$18.48 CA$4.9 -20.0 7.8

Source: YCharts

  • 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 announced in early March that it has established an at-the-market equity program through which it can issue up to $500.0 million of common shares to the public from time to time. The company intends to use the proceeds from the program to fund the advancement of growth projects and for general corporate purposes.
  • Iberdrola SA: See above for company description.
  • 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) 79.30 155.7 8.0
Boralex Inc. (BLX.TO) CA$39.76 CA$4.1 -2.7
Northland Power Inc. (NPI.TO) CA$41.20 CA$9.3 -3.8
Russell 1000 N/A N/A 5.6
First Trust Global Wind Energy ETF (FAN) N/A N/A -10.1

Source: YCharts

  • NextEra Energy 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. Boralex announced in mid-February that it has agreed to sell its 34.5 megawatt Senneterre power plant to Resolu Forest Products Canada Inc. The power plant is the company's last remaining biomass power generation asset. The sale is consistent with the company's plans to focus on growing its wind, solar, and storage businesses while maximizing the potential of its hydroelectric facilities. Financial terms of the agreement were not disclosed.
  • 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. TransAlta Renewables Inc. "TransAlta Renewables Reports Fourth Quarter and Full Year 2021 Results and Provides Outlook for 2022."

  4. NextEra Energy Inc. "NextEra Energy names John Ketchum president and CEO; Jim Robo to become executive chairman as part of a planned leadership succession process."

  5. Northland Power Inc. "Northland Power Establishes At-The-Market Equity Program."

  6. Boralex Inc. "Boralex announces an agreement for the sale of the

    Senneterre biomass power plant."

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