The wind energy industry is comprised of both 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 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 for wind companies. The ETF has outperformed the market during the trailing 12-month period, posting a total return of 7.8% while the S&P 500 has returned 5.8%. All figures are as of June 12, 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$31.39||CA$6.3||16.4|
|Vestas Wind Systems A/S (VWDRY)||33.20||19.5||29.5|
|Iberdrola SA (IBDRY)||43.28||67.5||29.9|
- Northland Power Inc.: Canada-based Northland Power is a diversified energy company with assets in wind, natural gas, and solar. Northland Power recently reported that the company expects to meet its 2020 fiscal guidance despite challenges posed by the COVID-19 pandemic.
- Vestas Wind Systems A/S: Vestas Wind Systems is a company that designs, manufactures, and installs wind turbines used to generate electricity.
- Iberdrola SA: Spanish energy company Iberdrola generates and distributes electricity across Europe, North America, and South America. The company focuses in particular on wind energy. In Q1 2020, the company posted earnings per share gains of 31.8% YOY.
Fastest Growing Wind Stocks
These are the wind stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Wind Stocks|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|General Electric Co. (GE)||6.95||60.8||75.0|
|Orsted A/S (DNNGY)||37.29||47.0||59.2|
|Boralex Inc. (BLX.TO)||CA$26.91||CA$2.6||38.7|
- General Electric Co.: Technology and financial services company General Electric is active in industries ranging from aviation and lighting to manufacturing and renewable energy. In Q1 2020, General Electric saw total revenue of $20.5 billion, down 7.6% YOY.
- Orsted A/S: Danish utility services company Orsted A/S develops, builds, and operates offshore wind farms.
- Boralex Inc.: Canadian energy company Boralex is focused on renewable power sources including wind, thermal, solar, and hydroelectric. The firm manages facilities in Canada, parts of the U.S., and France. Despite the challenges of COVID-19, Boralex saw strong growth in Q1 2020 thanks to a 38% increase in wind power production in France.
Wind Stocks with the Most Momentum
These are the wind stocks that had the highest total return over the last 12 months.
|Wind Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Price Change (%)|
|Boralex Inc. (BLX.TO)||CA$26.91||CA$2.6||43.1|
|Orsted A/S (DNNGY)||37.29||47.0||32.7|
|Northland Power Inc. (NPI.TO)||CA$31.39||CA$6.3||30.7|
|First Trust Global Wind Energy ETF (FAN)||N/A||N/A||7.8|
|S&P 500 (SPY)||N/A||N/A||5.8|
- Boralex Inc.: See company description above.
- Orsted A/S: See company description above.
- Northland Power Inc.: See company description above.
International Energy Agency. "Wind," Accessed June 14, 2020.
YCharts. "Financial Data," Accessed June 14, 2020.
Northland Power, Inc. "Northland Power Reports First Quarter 2020 Results," Accessed June 14, 2020.
Iberdrola SA. "Results First Quarter April 29, 2020," Page 11. Accessed June 14, 2020.
General Electric Co. "GE ANNOUNCES FIRST QUARTER 2020 RESULTS," Page 1. Accessed June 14, 2020.
Boralex, Inc. "Strong growth in Boralex's first quarter results due to 38% increase in wind power production in France," Accessed June 14, 2020.