Big and responsible: 3 renewable energy companies promising huge profits

The global transition to renewable energy sources is accelerating, making a case for buying the top renewable energy stocks in 2024. Thanks to global efforts to combat climate change, investments in renewable energy technologies are not only environmentally prudent, but also financially promising.

As the world continues to reduce its dependence on fossil fuels, companies specializing in wind, solar, hydrogen and other renewable energy sources will look to capitalize on this growing demand. This transformation will be achieved thanks to government support through policies such as the Inflation Reduction Act. It plans to devote about $369 billion to renewable energy projects, pollution reduction and environmental justice.

Moreover, a more dovish stance from the Federal Reserve could further increase risk appetite and increase investment in infrastructure and clean energy. Investors looking for both high returns and a positive environmental impact can benefit from the long-term growth potential of the renewable energy sector.

Now let’s discover the top 3 renewable energy stocks that promise huge profits in 2024 and beyond!

Linde (LIN)

Linde (NYSE:LIN), a global industrial gas giant, is well-positioned to take advantage of the growing hydrogen economy. The company’s experience in hydrogen production, storage and distribution makes it a leader in this emerging market.

Linde’s recent investments in hydrogen infrastructure underline its commitment to this market. It did not shy away from this sector, even despite the increased operating costs associated with financing multi-billion projects. Additionally, what makes Linde a unique renewable energy investment is that it is not reliant on hydrogen like many of its competitors.

So if its long-term hydrogen economy assumptions don’t pay off, it will do quite well compared to players like Connect the power (NASDAQ:PLUG). Even though revenue growth remained flat in FY23, the company recorded strong operating margin and earnings growth. Additionally, earnings per share increased by 10% year-over-year in the first quarter of FY24. Linde’s established presence and technological capabilities will result in EPS growth of approximately 8-10% in FY24. This makes LIN stock one of the largest companies in the renewable energy market, which may increase before the next increase

NextEra Energy (NEE)

The energy of the next era (NYSE:FROM HOME) stands out as one of the largest renewable energy stocks with the potential to deliver significant profits in 2024. Extensive investments in renewable energy infrastructure reinforce its status as an industry leader.

NextEra stock is off to a stellar start in 2024 following a record year of revenue and earnings in 2023. The company continues to make strategic investments in solar and energy storage, adding to its robust project portfolio. Its wholly owned subsidiaries FPL and NextEra Energy Resources remain focused on achieving long-term financial plans. In Q1FY24, revenue declined 15% year-over-year to $5.72 billion.

Net income increased 9% year over year to $2.27 billion, or $1.10 per share. FPL added 1,640 megawatts of new solar power to its pipeline, and NextEra Energy Resources added 2,765 new megawatts of new renewables and storage capacity to its backlog. Moreover, management anticipates approximately 10% dividend growth through 2026. If you’re looking for renewable energy companies with exceptional leadership, you should definitely keep an eye on NEE stock.

First Solar Energy (FSLR)

First Solar (NASDAQ:FSLR) has established itself as a leader in renewable energy, promising massive returns to discerning investors in 2024. The company’s exceptional financial performance and artificial intelligence development prospects excite Wall Street.

What sets First Solar apart from the competition is growing revenues and profits. The management team did a great job of allocating capital to new projects and reducing high operating costs. This has been its secret strategy as demand for its products skyrockets due to the proliferation of AI data centers. In the first quarter of 2024, revenue increased 45% year-over-year to $794 million.

Net income increased 456% year over year to $236.7 million, or $2.20 per share. In 2023, the company committed $1.1 billion to build a fifth manufacturing facility in the United States. With plans to reach 25 GW of nominal capacity by 2026, FSLR stock is among the elite renewable energy stocks to buy in June.

As of the date of publication, Terel Miles did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.