Eneti Inc., TPI Composites Inc., and Boralex Inc. are leading wind energy industry peers in revenue growth amid a boom in renewable energy investment.
Yet the First Trust Global Wind Energy ETF (FAN), a benchmark for wind energy stocks, fell about 1% in the past 12 months, about the same as the broader Russell 1000 Index.
We look at the top wind energy stocks in three categories: the best value, the fastest growth, and the best performance. All data are as of April 24.
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|
|Eneti Inc. (NETI)||9.86||0.4||3.6|
|Clearway Energy Inc. (CWEN)||31.51||3.7||6.3|
|Northland Power inc. (NPI.TO)||CA$33.73||CA$8.5||9.7|
- Eneti Inc.: Eneti has five wind turbine installation vessels to construct offshore wind turbine generators. The company changed its name and business model in 2021 from Scorpio Bulkers Inc., a dry bulk marine shipping company. Eneti reported its fourth-quarter earnings on Feb. 9, posting $12 million in net income on revenue that more than doubled compared to Q4 2021. In February, the company's wholly-owned subsidiary, Seajacks UK Ltd., was awarded a $4 million European contract for assistance in producing an NG2500 vessel.
- Clearway Energy Inc.: Clearway Energy is a renewable energy company that operates wind, solar, and natural gas facilities.
- Northland Power Inc.: Northland Power is a Canada-based global power producer that operates onshore and offshore wind, efficient natural gas, and solar energy facilities. On Feb. 10, the company, along with multiple partners, announced the execution of the Oneida Energy Storage Project which is the largest battery energy storage project in Canada. Northland's fourth-quarter earnings doubled from 2021 to 2022 on excess production capacity and higher marker prices. Northland Power also trades over-the-counter (OTC) in the U.S. under the ticker NPIFF.
Fastest Growing Wind Energy Stocks
These are the top wind energy stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth.
Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general.
Companies with quarterly EPS or revenue growth of over 1,000% were excluded as outliers.
|Fastest Growing Wind Energy Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Eneti Inc. (NETI)||9.86||0.4||N/A (see company description)||282|
|TPI Composites Inc. (TPIC)||12.93||0.5||N/A (see company description)||75|
|Boralex Inc. (BLX.TO)||CA$40.58||CA$4.2||-18||65|
- Eneti Inc.: See company description above. Note Eneti doesn't have an EPS growth figure in the table above because the company reported negative EPS in Q4 2021. Diluted EPS in Q4 2022 was $0.32.
- TPI Composites Inc.: TPI Composites manufactures composite wind blades and related assembly systems. Note TPI Composites doesn't have an EPS growth figure in the table above because the company reported negative EPS in the most recent quarter.
- Boralex Inc.: Boralex is a Canada-based electricity producer engaged in developing, constructing, and operating renewable energy power stations. The company operates wind, hydroelectric, thermal, and solar segments. Boralex announced in December that it had acquired EDF Renewables' interest in five operating wind farms in New Mexico and Texas. Boralex also trades over-the-counter (OTC) in the U.S. under the ticker BRLXF.
Wind Energy Stocks With the Most Momentum
These are the wind energy stocks that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at.
|Wind Energy Stocks With the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Eneti Inc. (NETI)||9.86||0.4||69|
|General Electric Co. (GE)||99.51||108.5||40|
|Engie SA (ENGIY)||16.94||41.0||39|
|First Trust Global Wind Energy ETF (FAN)||N/A||N/A||-4|
- Eneti Inc.: See company description above.
- General Electric Co.: General Electric is an international industrial company with a renewable energy unit that manufactures wind turbine blades, among other products. General Electric's stock price has doubled since October of last year, partly due to the spin-off of its healthcare business, GE Healthcare (GEHC), and strong revenue growth at its aerospace unit. Note GE plans to spin off its renewable energy unit in early 2024.
- Engie SA: Engie is a France-based company that operates renewable energy facilities such as onshore and offshore wind, hydroelectric, and solar. The company also engages in the transportation of natural gas and nuclear power generation.
The Impact of Regulation on Wind Energy Stocks
The Inflation Reduction Act, which President Biden signed into law in August 2022, will likely have a significant impact on wind stocks. The act provides funds to engage in the analysis of offshore wind energy transmission, for example. The law also provides updated authority to the Department of the Interior to issue both offshore and onshore renewable energy leases. Perhaps most important for wind companies, though, is the sizable tax credit offered to domestic manufacturers of wind energy components.
In September 2022, the Biden administration established several regulatory measures aimed at increasing U.S. offshore wind energy production to 30 gigawatts, or enough to power 10 million homes, by 2030.
Advantages of Wind Energy Stocks
Wind stocks benefit from many of the advantages wind energy has over other types of energy sources. Wind energy is a rapidly growing area of the alternative energy industry, and accounted for more than 10% of U.S. energy production in 2022. Wind energy has key advantages over other types of energy, particularly as the move away from traditional fossil fuel energies gains momentum. One of them is that wind provides a clean, inexhaustible resource compared to coal or oil.
CNBC "From GE to Siemens, the Wind Energy Industry Hopes Billions in Losses Are About to End."
Eneti Inc. "Eneti Announces Fourth-Quarter Full-Year Financial Results."
Eneti Inc. "Eneti Inc. Announces A Contract Awards for Seajacks."
Northland Power Inc. "Northland Power and Partners Execute Major Agreements for Oneida Energy Storage Project."
Northland Power Inc. "Northland Power Reports Fourth Quarter and Full-Year 2022 Results."
Boralex Inc. "Boralex Acquires a 50% Interest in Five Wind Farms Totaling 894 MW in the United States."
General Electric Co. "GE Announces Fourth Quarter 2022 Results."
Congressional Research Service. "Offshore Wind Provisions in the Inflation Reduction Act," Pages 1-3.
White House. "FACT SHEET: Biden-Harris Administration Announces New Actions to Expand U.S. Offshore Wind Energy."
Office of Energy Efficiency & Renewable Energy. "Advantages and Challenges of Wind Energy."