3 Undervalued Clean Energy Stocks With Growth Potential, Regardless of Who’s in the White House – TPI Composites (NASDAQ:TPIC), Prysmian (OTC:PRYMF), HA Sustainable (NYSE:HASI), Prysmian (OTC:PRYMY)

As we enter the second half of 2024, the clean energy sector is ripe with opportunity despite the current volatility. The sector is poised for positive surprises in the coming year, according to JPMorgan analyst Patrick Jones.

Here are three less-popular clean energy stocks that have strong growth potential, regardless of the political changes in the White House.

HASI Capital

Hannon Armstrong Sustainable Capital Infrastructure Inc HAS is a climate investment firm that partners with clients to deploy assets that support the energy transition. They invest in distributed energy projects, renewable energy sources such as solar and wind, and sustainable fuels and transportation initiatives. The firm differentiates itself through its diverse end-market exposure.

Having recently achieved an investment-grade rating from Fitch, HASI is poised to benefit from a lower cost of capital. This development should support the company’s guidance and catalyze stable spreads.

In addition, HASI’s decreasing reliance on public sources of capital “should limit negative ‘surprises’,” making it an attractive choice in the clean energy sector.

TPI Composites

TPI Composites Inc. TPICalthough smaller in terms of market capitalization, it has significant growth potential. The company produces composite wind blades and structures for buses, railways, amusement parks and trucks. It operates in the wind energy and transportation industries. The company has segments in the US, Asia, Mexico, EMEA and India, with Mexico generating the largest revenue.

The company’s wind turbine blade business is expected to benefit from increased order activity from wind OEMs, which has increased over the past year. The visibility of domestic Inflation Reduction Act (IRA) bonuses could spur further orders and potential production expansions.

These factors make TPI Composites an attractive, undervalued stock whose future is tied to promising catalysts.

Prysmian Group

Prysmian SpA Group PRIMEF PRIMES is an Italian manufacturer of power and telecommunications cables. It operates in three segments: Projects (cable projects), Energy Products (power distribution) and Telecommunications (connectivity products). Following the acquisition of Encore Wire, the company now derives most of its profits from North America.

The company is well-positioned to capitalize on electrification trends driven by data centers, megaprojects, grid investments and IRAs. Prysmian’s capacity expansion potential further increases upside risk, making it a strong competitor in the clean energy sector.

Also read: What a Biden or Trump victory could mean for the energy sector

Jones emphasizes that while renewable deployments are expected to increase in 2024, growth prospects vary across markets. In the U.S., utility-scale solar projects are showing promising growth due to an extensive backlog. However, China’s solar market could see stagnant installations due to high comparability rates from 2023 and grid bottlenecks. Meanwhile, the global wind industry is recovering from years of stagnation, supported by falling input costs and favorable policies.

Despite anticipated volatility due to the upcoming U.S. election cycle and polarized energy policy debates, the long-term growth trajectory of the clean energy sector remains intact. These under-the-radar stocks, with their strategic positioning and growth catalysts, offer significant growth potential for investors looking to capitalize on the evolving clean energy landscape.

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