Despite what some experts would have you believe, the alternative energyrevolution is here and shows no signs of stopping.
moneymorning.com/wp-content/blogs.dir/1/files/2018/07/solar-and-wind-75×50.jpg 75w, moneymorning.com/wp-content/blogs.dir/1/files/2018/07/solar-and-wind.jpg 550w” sizes=”(max-width: 300px) 100vw, 300px” title=”alternative energy” style=”font-size: 18.0018px; box-sizing: border-box; margin: 0px 0px 24px 24px; padding: 0px; border: 0px; vertical-align: middle; max-width: 100%; height: auto; float: right; text-align: right;” />That’s easy to miss, given the political headlines in the United States. U.S. President Donald Trump notably pulled out of the Paris Climate Agreement last year, and this year he announced tariffs on imported solar cells.
Naturally, some of the best alternative energy stocks have pulled back from their highs as investors fear the trend toward these energy sources is slowing down.
That fear, however, is overblown. In fact, some of these alternative energy stocksare now drastically undervalued.
We’ve got one solar energy stock today that’s due for a 420% pop based on its recent performance alone. That’s before you account for the growth on the way.
The fact is, tariffs or no, developers around the world want this technology. It’s clean and efficient, and by now, it’s often the cheapest option. Based on bids solicited last year by Xcel Energy in Colorado, for example, building and maintaining brand new solar and wind plants was cheaper than just keeping up operations for 74% of the country’s existing coal plants.
The U.S. solar tariffs, which wind down by 5% every year, may offset the lower price of solar somewhat in this country, but they won’t be enough to stem the tide of solar, wind, and several other renewable sources.
Many naysayers seem to forget the world is a lot bigger than the United States. Most developed countries are shifting their energy grids without any of the restrictions the United States has put in place.
Top 5 Penny Stocks To Invest In Right Now: Nutrien Ltd.(NTR)
Fertilizer stocks have had a rough go in recent years. So rough, in fact, that even the faintest whiff of a rebound in the second half of 2018 is causing shares of industry leaders to rally. While it’s still too early to say selling prices are moving in the right direction for good, one of the newest companies is also one of the best positioned to capitalize on an improving market.
Nutrien, which was formed from the merger of Agrium and Potash Corporation, is a $34 billion goliath selling all three major agricultural nutrients. The company might be the most important global potash miner, as well as a major player in nitrogen. However, the business is also keen to grow its distribution network and diversify earnings away from nutrient selling prices. So, investors might be surprised to learn that the retail segment generated 35% of adjusted EBITDA last year — more than potash or nitrogen.
That’s only one source of strength for the business. Nutrien is in the process of wringing out $500 million in annual cost savings from the merger, having achieved $150 million in the first quarter of 2018. Meanwhile, it’s also selling its equity stake in Chilean lithium miner Sociedad Quimica y Minera de Chile, brought to the merged company by Potash Corporation. The sale is expected to generate at least $4 billion in net proceeds, which could halve the company’s total long-term debt. That would bring its debt-to-equity ratio well below peers’ and closer to the marks set by creditors. Combined with cost savings and the potential for higher selling prices, this would make the fertilizer leader well positioned to capitalize on a potential market rebound. Throw in a healthy 2.9% dividend yield, and investors may want to give this one a closer look.