From transportation to manufacturing consumer products, energy is at the core of our lives. Within the energy market, renewable energy has grown rapidly as the global consciousness of climate change is increasing. Although the renewable energy sector has been down recently, this does not take away the fact that our society needs to move toward cleaner energy and away from traditional fuel sources like natural gas, oil and coal. This new renewable energy sector includes anything from hydrogen fuel systems to solar energy, and they are all still evolving in their applications.
While buying stocks that are at their 52-week lows is risky, on the other hand, it could present a massive upside opportunity. Thus, it is important for investors to understand exactly why the stock is down before jumping into buying. For investors looking for cheap green energy, below are the three best renewable energy stocks to buy at an all-time low in July.
Plug Power (PLUG)
Plug Power (NASDAQ:PLUG) specializes in hydrogen fuel systems which are used to replace traditional batteries powered by electricity.
Plug Power had a poor start to 2024. According to the first quarter financials, Plug Power recorded a 42.81% decline in revenue as well as an earnings per share of 46 cents.
Currently, its stock price is almost at an all time low – it dipped to $3.07 per share compared to $12.76 per share just a year ago.
However, there are still reasons to believe that Plug Power will bounce back. The company recently finished deploying 13 hydrogen refueling stations (HRS) in Europe, making Plug Power the largest owner of HRS stations with over 250 stations globally. The new stations in the UK, France, Germany, Spain and the Netherlands are expected to be in full operation by the end of this summer, and it includes a material handling customer base with companies like Stef, ASDA, Lidl, and more.
Array Technologies (ARRY)
Array Technologies (NASDAQ:ARRY) is another renewable energy stock that hit an all-time low in July. Last week, its stock fell below $10 for the first time since the second quarter of 2022. The stock is down -41.14% year to date.
At first glance, Array Technologies might seem like an obvious sell. However, when looked at it more closely, there are lots of things to like about the company.
As the largest solar tracker company globally, Array Technologies offers various services including the DuraTrack system, which is a single-axis tracker technology that helps maximize PV panel energy production. In March, the company also announced that it is investing in a technology that protects its solar trackers from extreme weather conditions like hail.
Recently, Citigroup upgraded the average one-year price target for Array Technologies to $19.52 per share. This is more than a 80% upside prediction, which is a strong indication that analysts have reason to believe in Array Technologies’ future growth potential. At the current discounted price, Array Technologies presents a great buy opportunity for investors.
Shoals (SHLS)
Headquartered in Portland, OR, Shoals (NASDAQ:SHLS) is the largest provider of electrical balance of systems (EBOS) solutions for utility-scale solar. Primarily used in solar driven projects, the components produced in EBOS are used to carry the electric current from solar panels to the inverter, which then transforms direct current to alternating current.
Even though Shoals stock is down more than 70% year over year as of writing, Shoals has reasons to make investors feel confident about buying.
While primarily located in the United States, Shoals has been gradually expanding abroad. It offers Shoals a great opportunity to reach an international audience and continue its dominance globally. Furthermore, with the newest stock repurchase program, Shoals plans to buy $150 million worth of Shoals stocks by the end of next year. Finally, analysts are anticipating a large 35% increase in earnings per share in just a year.
While the stock is at an historic all-time low and there are positive growth factors going for the company, investors should seriously consider buying Shoals stocks right now.
On the date of publication, Andy Kim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.