Summary: Renewable energy is all the rage among ESG investors looking to generate profit and address some environmental concerns. In this guide, we present 3 renewable energy penny stocks based on their potential for long-term growth and portfolio robustness. To invest in our picks, investors can open an account with an online investment platform such as eToro.
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What are renewable energy stocks?
Renewable energy stocks are shares in companies engaged in harnessing renewable sources like wind, water, and solar power, as well as companies developing new technologies in the sector, for example, panels and turbines used on solar farms and hydroelectric plants. Given their environmental benefits and potential for long-term growth across various business segments, these stocks present an appealing diversification avenue for many investors.
In this guide, we focus on shares in companies operating in the renewable energy sector traded at a lower price, more specifically, for less than $5 per share. These companies are often smaller in size and may be relatively new or less established compared to larger corporations in the industry.
3 renewable energy penny stocks
Below, we’ve got a list of 3 renewable energy penny stocks you should consider this year:
- Gevo (NASDAQ: GEVO);
- Ballard Power Systems (NASDAQ: BLDP);
- Plug Power (NASDAQ: PLUG).
Feature note: All three stocks are available on eToro.
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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1. Gevo (GEVO)
Gevo focuses on bio-based alternatives to petroleum products, particularly sustainable aviation fuel meant to reduce carbon emissions. Despite its fierce competition, Gevo’s strategic partnerships, its focus on commercial-scale production, and its contribution to national security by enhancing energy independence could result in growth. As such, Gevo could be a potentially solid market entry for investors looking to address climate change concerns
Gevo stock price today
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2. Ballard Power Systems (BLDP)
Ballard Power Systems is a prominent fuel-cell manufacturer specializing in heavy automotive and portable energy solutions. The company mostly targets large-scale enterprise clients, which can ensure stability even amidst market volatility. Moreover, its debt-free balance sheet is another green flag, as it signals a potentially lucrative blend of smart marketing strategy and fiscal caution that a penny stock needs.
Ballard Power Systems stock price today
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3. Plug Power (PLUG)
Plug Power has risen to prominence within the hydrogen industry, concentrating on delivering hydrogen fuel cell solutions across diverse applications. Its innovative technologies target sectors like material handling, transportation, and stationary power, showcasing versatility. The company’s management team is highly optimistic about the future of the company, forecasting more annual profits by 2030 than what the company is worth in 2024. While there is no saying whether the company is going to succeed in its endeavors, it is definitely worth keeping an eye out for its future developments.
Plug Power stock price today
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Where to buy renewable energy penny stocks
To buy the renewable energy penny stocks on our list, you can open a trading account with a regulated and licensed online brokerage.
We recommend eToro, a leading brokerage platform with millions of active users and investment features, including:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- The option to purchase fractional shares;
- Charting tools;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Pros and cons of renewable energy penny stocks
Pros
- Potential for high returns: Even a small increase in penny stock value can mean profits;
- Accessible investing: Since they are cheap, penny stocks are a solid way to start investing if you’re not comfortable handling larger sums;
- Supporting new technologies: Investing in renewable energy penny stocks often means investing in newer or startup companies, some of which have a lot of interesting ideas in regard to tech used in the industry;
- Diversification: Renewable energy penny stocks are an affordable way to diversify your portfolio.
Cons
- High volatility: Penny stocks are often highly volatile;
- Higher risk: Penny stocks often mean smaller market caps and not-so-long track records;
- Lack of liquidity: Penny stocks can be less liquid than more established stocks, meaning they can be harder to sell.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about renewable energy penny stocks
What are renewable energy penny stocks?
Renewable energy penny stocks are stocks in the renewable energy sector trading for less than $5 per share.
How to invest in renewable energy penny stocks?
To invest in renewable energy penny stocks, you can open a brokerage account at an investment platform such as eToro.
Where to buy renewable energy penny stocks?
Renewable energy penny stocks are available for purchase on trading platforms such as eToro.
Are renewable energy penny stocks a good investment?
Renewable energy penny stocks can be a good investment, but they carry inherent risks, so never invest in them without doing prior research. Some of their inherent risks are low liquidity and high volatility.
What are the best renewable energy penny stocks to buy this year?
Some of the best renewable energy penny stocks to buy right now are Nikola (NASDAQ: NKLA), Ballard Power Systems (NASDAQ: BLDP), and Plug Power (NASDAQ: PLUG).
Are solar stocks the same as renewable energy stocks?
While all solar stocks belong to the category of renewable energy stocks, not all renewable energy stocks are solely focused on solar energy. That is, renewable energy stocks encompass a wider range of companies involved in various green energy and renewable energy sectors.
