RUN) vs. rest of renewable energy stocks

As the Q1 earnings season comes to a close, let’s take a closer look at the best and worst renewable energy stocks this quarter, including Sunrun (NASDAQ:RUN) and its peers.

Renewable energy companies are buoyed by the secular green energy trend that is upending traditional power generation. Those who innovate and evolve with this dynamic market could gain share, while those who still rely on older technologies could see declining demand, including headwinds from increasing regulation against “dirty” energy. In addition, these companies are subject to economic cycles, as interest rates can affect willingness to invest in renewable energy projects.

The 9 renewable energy stocks we track had a mixed Q1, with revenues falling 2% short of analyst estimates on average. Inflation was trending toward the Fed’s 2% target late in 2023, leading to strong stock market performance. The start of 2024 was bumpier as the market toggled between optimism and pessimism on interest rate cuts amid mixed inflation data, and while some renewable energy stocks performed slightly better than others, they fell overall, with stocks down an average of 3.1% since the previous earnings results.

Sunrun (NASDAQ:RUN)

Helping homeowners harness the power of the sun to power their homes, Sunrun (NASDAQ:RUN) brings solar energy to homes, specializing in panel installation and leasing services.

Sunrun reported revenue of $458.2 million, down 22.3% year over year and 3% below analyst expectations. It was a very strong quarter for the company, with an impressive beat on analyst estimates for earnings.

“We are starting the year with solid business momentum as our storage-focused, margin-focused strategy continues to deliver strong results. In the first quarter, we exceeded the high end of both our storage and solar guidance, set new records for storage connection rates, and delivered another quarter of strong subscriber net worth and a growing subscription mix,” said Mary Powell, CEO of Sunrun.

The company’s shares are up 5.3% since the results were announced and are currently trading at $12.13.

Is it time to buy Sunrun? Get access to our full earnings analysis here, it’s free.

Nextracker (NASDAQ:NXT)

Nextracker (NASDAQ:NXT) uses solar tracking systems in numerous power plants around the world. These are advanced systems that allow solar panels to follow the sun.

Nextracker reported revenue of $736.5 million, up 42.1% year over year and beating analyst expectations by 7.7%. It was a very strong quarter for the company, with impressive topping of analyst estimates for sales volume.

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Nextracker has seen the fastest revenue growth among its peers. Shares are up 10.6% since the results and are currently trading at $47.59.

Is it time to buy Nextracker? Get access to our full earnings analysis here, it’s free.

Weakest Q1: Plug Power (NASDAQ:PLUG)

Plug Power (NASDAQ:PLUG) supplies hydrogen fuel cells that power forklifts in Walmart distribution centers.

Plug Power reported revenue of $120.3 million, down 42.8% year over year and 23.7% below analyst expectations. It was a weak quarter for the company, with revenue and earnings per share falling below expectations.

Plug Power delivered the weakest results vs. analyst estimates and the slowest revenue growth of the group. Shares are down 2.2% since the results and are currently trading at $2.46.

Read our full analysis of Plug Power’s results here.

Bloom Energy (NYSE:BE)

Operating in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures and sells solid oxide fuel cell systems for local power generation.

Bloom Energy reported revenue of $235.3 million, down 14.5% year over year and 5.6% below analyst expectations. It was a slower quarter for the company, which missed analyst estimates for earnings.

The company’s shares are up 0.9% since the results were announced and are currently trading at $11.85.

Read our full, actionable report on Bloom Energy here, it’s free.

Shoals (NASDAQ:SHLS)

Shoals (NASDAQ:SHLS), based in Huntsville, Alabama, designs and manufactures products that enhance the efficiency of solar energy systems.

Shoals reported revenue of $90.81 million, down 13.6% year over year, missing analysts’ expectations by 3.7%. It was a mixed quarter for the company. While revenue missed expectations, EPS beat analyst estimates.

The company’s shares have fallen 31.7% since the results were announced and are now trading at $6.

Read our full, actionable report on the Shoals here, it’s free.

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