PEF to AGR: Could this Earth Day be a boon for these renewable stocks? - Kalkine Media

April 20, 2022 11:31 AM PDT | By Versha Jain
Follow us on Google News:

Highlights 

  • Dominion Energy, Inc. (NYSE: D) stock has a P/E ratio of 21.87 and a dividend yield of 3.05%.
  • On April 19, Public Service Enterprise Group Incorporated (NYSE: PEG) declared a dividend of US$0.54 per share for the fiscal second quarter of 2022.
  • Avangrid, Inc. (NYSE: AGR) has a dividend yield of 3.6% and an annualized dividend of US$1.76. Its P/E ratio is 23.54.

In the wake of the Russia-Ukraine war, energy prices have shot up at a record pace, contributing to the inflationary pressure. Against this backdrop, wind and solar energy may offer some hope for ordinary citizens reeling under high inflation.

However, clean energy prices have also climbed over the past year. According to LevelTen Energy, a quarterly index that tracks energy deals or power purchase agreements (PPAs), renewable energy prices rose around 9.7% in North America in the first quarter.  

The double blow of the pandemic and the Ukraine crisis has severely impacted the energy market. Higher costs may prove a significant setback to the UN’s call for more renewable energy adoption. 

Also Read: Top Metaverse ETFs to watch in Q2: METV, MTVR, VERS, FTEC & PUNK

The renewable energy market comprising wind, solar, hydropower etc., has grown manifold in recent years. But could this Earth Day (April 22) be a gamechanger for the sector?

Renewable energy companies are engaged in the production and distribution of clean energy as well as machinery to keep the industry running. The following five renewable energy stocks may be worth exploring in the midst of a simmering oil crisis.

Dominion Energy, Inc. (NYSE: D)

Closing Price on April 18, 2022: US$86.43
Price range in last 52 weeks: US$88.78 to US$70.37

The company has a market capitalization of US$70.6 billion. 

Dominion Energy is an integrated energy company based in Richmond, Virginia. It has more than 30 gigawatts (GW) of electric generation capacity and over 90,000 miles of electric transmission and distribution lines. It owns a liquefied natural gas (LNG) export facility and constructing a 5.2 GW wind farm off in the US.

For the fiscal year ended December 31, 2021, it reported operating revenue of US$13.96 billion compared to US$14.17 billion in fiscal 2020. Its net income attributable to the company was US$3.29 billion or US$3.98 per diluted share against the net loss of US$401 million or US$0.57 per diluted share in the previous fiscal year.

Its P/E ratio is 21.87, and the forward P/E for one year is 21.08. The stock has a dividend yield of 3.05% with an annualized dividend of US$2.67.

Also Read: From FB, GOOGL to PINS: Top social media stocks to explore in April

 PEF to AGR: Could this Earth Day be a boon for these renewable stocks?

Also Read: Five student loan stocks to watch in April: DFS to SLM

Public Service Enterprise Group Incorporated (NYSE: PEG)

Closing Price on April 18, 2022: US$72.43
Price range in last 52 weeks: US$73.39 to US$58.96

PEG has a market capitalization of US$36.59 billion. 

Newark, New Jersey-based Public Service Enterprise Group, is a holding company. Its subsidiaries are regulated utility (PSE&G), nonregulated nuclear power generation, and clean energy infrastructure. 

The company recorded revenue of US$9.7 billion for the fiscal year ended December 31, 2021, compared to US$9.6 billion in the previous fiscal. The energy company posted a net loss of US$0.648 billion or US$1.29 per share diluted against a net income of US$1.9 billion or US$3.76 per diluted share in the fiscal year 2020.

On April 19, it declared a dividend of US$0.54 per share for Q2, 2022, payable on or before June 30, 2022, to shareholders of record on June 9, 2022. Its P/E ratio is 20.81. The stock has a dividend yield of 2.97% and an annualized dividend of US$2.16.

Also Read: Top tech stocks to explore in Q2: AAPL, MSFT, NVDA, ACN & CSCO

Avangrid, Inc. (NYSE: AGR)

Closing Price on April 18, 2022: US$48.53
Price range in last 52 weeks: US$55.57 to US$42.20

Avangrid Inc. has a market capitalization of US$18.8 billion. 

Avangrid operates two business units, Networks and Renewables. The Network unit operates eight regulated electric and natural gas utilities serving around three million customers. The Renewables unit is developing onshore wind projects but has recently been expanding to solar and offshore wind projects. 

This Orange, Connecticut-based company booked an operating revenue of US$6.97 billion in the fiscal year ended December 31, 2021, compared to US$6.32 billion in FY2020.

It posted a net income of US$707 million or US$1.97 per share diluted compared to US$581 million or US$1.88 per share diluted in fiscal 2020. 

The stock’s P/E ratio is 23.54, and the forward P/E for one year is 22.16. It has a dividend yield of 3.6% and an annualized dividend of US$1.76.

Also Read: Top restaurant stocks to explore: ARCO, PLAY, RUTH, BDL & PBPB

ReNew Energy Global plc (NASDAQ: RNW)

Closing Price on April 18, 2022: US$8.05
Price range in last 52 weeks: US$12.30 to US$5.06

ReNew Energy has a market capitalization of US$3.2 billion.

London-based ReNew Energy operates utility-scale wind and solar energy projects.

For the quarter ended December 31, 2021, its revenue was INR11.9 billion (US$160 million) compared to INR9.9 billion in the same quarter of 2020. The loss came in at INR6.38 billion (US$86 million) compared to INR3.5 billion in the December quarter of 2021. 

Also Read: Top ethanol stocks to watch this summer: ADM, ANDE, GPRE, REX & VLO

 PEF to AGR: Could this Earth Day be a boon for these renewable stocks?© Airubon | Megapixl.com

Also Read: Top mental health stocks to watch in Q2: LLY, ACHC, ITCI, LSFT & ACAD

Iberdrola S.A. ADR (OTC: IBDRY)

Closing Price on April 18, 2022: US$45.06
Price range in last 52 weeks: N/A

The company has a market capitalization of US$73.61 billion.

Bilbao, Spain-based Iberdrola is one of the largest utility companies in the world. It has operations in nearly 40 countries. Wind energy makes for a third of its portfolio, which also includes hydro, natural gas, coal, and nuclear power. 

For the fiscal year ended December 31, 2021, its revenue was Euro 39.11 billion (US$42 billion) compared to Euro 33.15 billion (US$36.19) a year ago. The net income came in at Euro 3.89 billion (US$4.19 billion) in FY2021 compared to Euro 3.61 billion (US$3.89 billion) in FY2020.

The stock has a dividend yield of 1,79%.

Also Read: SYY to KO: 5 inflation-beating consumer staple stocks to watch in Q2

Bottom line:

Analysts say higher prices of fossil fuels may increase demand for renewable energy. The renewable energy segment has received significant support from the government to reduce dependency on fossil fuels over the past few years. Experts see substantial growth in the industry in the coming years. However, investors should apply due diligence before investing in stocks.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies