Why Energy Stocks Are Thriving

Energy stocks are all the rage, and for good reason. 

Why Energy Stocks are thriving.

Gas prices have had oil companies making money hand over fist, right or wrong.

With the rise of electric vehicles, we’ve also been seeing companies that deal in lithium do very well.

But another sector of energy investing that often gets overlooked is renewables. 

Companies making solar panels and wind turbines don’t draw public ire the way oil companies do. 

And they don’t have someone like Elon Musk serving as the face of the sector the way lithium for electric cars does. 

So they’re not something a lot of people think about despite being a fast-growing segment of energy investing. 

But just how fast is this segment growing? 

Fast enough that renewables are just about on par with nuclear power at this point. 

Due to falling prices and incentives, electricity generated by wind, solar, and hydro has been able to match nuclear for generating 19% of electricity in the US. That number is going to grow, given how much room renewables have left to run. 

Solar power alone is set to double capacity in just three years. That’s according to the Federal Energy Regulatory Commission’s (FERC) recent Energy Infrastructure Update. The update states that queued solar projects — those at a level of development where they’re very likely to be completed — will add 72 GW of power through 2025. The country has 77 GW of active solar capacity today. 

So this trend moving upward is a given at this point. And it goes hand-in-hand with energy investing in general. 

Of the S&P 500’s 11 sectors, energy is the only one that’s up for the year, showing a nearly 60% one-year return.

S&P Energy Index graph

So if you had money in energy investments, you’re one of the few people who’ve done well these past twelve months. 

With how well renewables have been doing, that’s likely to continue. The push for renewables is global and has been accelerated by both climate change and the ongoing war in Ukraine. 

Countries have quickly realized just how important it is to be self-sufficient when it comes to energy needs, and are working to make it happen. 

France, for instance, just put a rule in place saying that all large car parks have to have solar panels installed. And a recent survey in Europe shows that most EU citizens favor it as a means of generating power while fighting climate change. 

So renewables, and solar in particular, have public opinion on their side along with the backing of governments. 

That foundation alone is one reason why the sector has been getting a lot of investor attention. 

The shift to renewables was slow until this past year. Then, the factors explained above brought them center stage. 

Now we’re poised to see something of an energy renaissance as countries revamp their power infrastructure to get away from fossil fuels. 

Here in the US, that means more solar panels and wind turbines along with massive investments in the technology to support these things. 

It’s quietly happening with one company that has developed a technology to integrate solar panels, wind turbines, EV batteries, and other power sources into the grid. It’s doing away with the old ways of power generation and bringing the technology into the 21st century. 

It’s just another reason why energy investing is one of the smart investment moves right now. 

It’s in a position to continue thriving no matter what the rest of the market does. 

The company behind this technology is little-known. As the energy sector changes and continues to thrive, more people are going to find out about it. 

Get in on this company now and you can be right there on the ground floor as the profits start to take off.

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle