3 renewable energy stocks that will turn your portfolio into a money-making machine

Renewable energy is well on its way to replacing fossil fuels. Many economies are moving towards green energy sources, and the UN COP28 summit has encouraged more countries to get involved. Governments are also encouraging companies to switch suppliers, making the market ripe for the expansion of green energy. This could be a great opportunity for investors to seek out growth-oriented renewable energy stocks.

So today I’m going to focus on three companies that are poised to grow with the renewable energy sector. To come up with a list of stocks, I searched the market using the following criteria:

• At least a buy rating from analysts,
• Revenue growth of at least 10% in three consecutive years.

I’ve sorted the list based on highest to lowest revenue growth in the most recent annual reports. This allows me to focus on stocks that are consistently growing their revenues, have Wall Street’s stamp of approval, and have the potential to capitalize on the trend of a growing transformation towards a greener economy.

Global beam (BEEM)

The demand for clean energy has been growing steadily for years. Companies like Global Beam (NASDAQ:RUNS) continually innovate by designing and patenting advanced energy solutions for sustainable products and technologies.

The company recently deployed additional solar-powered ARC public electric vehicles to the California Department of General Services (DGS) to support sustainable energy practices.

Beem Global started FY24 strong on solid footing, with Q1 revenue up 12% YoY to $14.6 million. The company also reported record gross profits with a 10.2% margin and 310% growth in EV charging orders. This is a strong continuation of FY23 results, which saw revenues grow YoY by 206%.

The company happily announced that it remains debt-free and has a contingency plan in the form of a $100 million credit line, $160 million in significant pipelines and $20 million in arrears. The continued success in executing its strategies is evident in the consistently growing revenues over the last 3 years, with FY21 growing by 45% and FY22 growing by 144%.

The steady revenue growth is evidence of why Wall Street rates the company a buy, making BEEM one of the top growth stocks in the renewable energy sector.

Nextracker (NXT)

As the renewable energy market grows, so does the need for such companies Next tracker (NASDAQ:NXT) solutions that create software and solar solutions for more efficient energy production in solar farms.

The company’s key technology helps the solar panels of solar power plants go where the sun shines, efficiently harnessing and converting solar energy into stored energy. Nextracker’s latest NX Horizon system offers customers a 35% lower carbon footprint and helps decarbonize solar energy.

Nextracker reported record Q4 and FY’24 as annual revenues reached $2.5 billion, up 31% YoY. Meanwhile, diluted EPS reached $3.37, a whopping 16,750% increase from last year’s 2 cents per share. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 150% YoY to $521 million and maintained a solid backlog of more than $4 billion.

The company appears well-positioned to continue to grow revenue over the past three fiscal years. For comparison, here are the year-over-year increases for the past two annual reporting periods:

• FY’22: 22%
• FY’23: 30%

Meanwhile, fiscal 2025 revenues are forecast to be around $2.8 billion and $2.9 billion, continuing its strong streak and earning it a spot among the top renewable energy growth stocks. It’s no surprise that analysts rate NXT stock as a Strong Buy.

Sunnova Energy International (NOVA)

Industry-leading adaptive energy service that makes clean energy more accessible and affordable for homeowners and businesses, Sunnova Energy International (NYSE:NEW) works with various dealers and contractors to provide sustainable solutions providing energy storage and solar energy systems.

The company also provides additional services that help customers switch power sources from the grid to solar panels and to an installed energy storage device for efficient setup. Sunnova Energy opens the Sunnova Adaptive Technology Center (ATC), which houses a microgrid system that replicates various grid and solar panel conditions.

The company’s fiscal year 2023 results underscore significant growth and strategic progress. In Q4, it grew its customer base to 419,200, adding over 34,000 new customers.

Meanwhile, revenue rose to $720.7 million, driven by increased service and direct sales. This represents a 29% year-over-year increase compared to last year’s $557.7 million in revenue. Looking further back, Sunnova recorded 50% and 131% growth in FY’21 and FY’22, respectively.

The company’s focus on generating cash for 2024 through cost reductions and asset sales has left it with significant cash reserves and a strong 2024 outlook. It’s no surprise that analysts consider it a strong buy. As a result, NOVA stock could be a good target if you’re looking for a growth renewable energy stock.

As of the date of publication, Rick Orford did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are the author’s own, subject to InvestorPlace.com Publication Guidelines.