Three largest renewable energy companies aiming to grow by 50% by 2028

Investing in renewable energy stocks is becoming more and more attractive in the fight against climate change. Thanks to advances in clean technology and increasing support from governments, the renewable energy sector is poised for significant growth.

Key areas of interest in this sector include solar, wind, hydro and energy storage, all of which have experienced tremendous growth. Two of the most promising signals for the sector are the prospect of lower interest rates from 2025 and regulatory support for large infrastructure projects. By 2028, several key players will be well-positioned to continue to grow their revenues, profits and free cash flow.

This could boost their stock prices by 50% or more. Investors looking to capitalize on these trends should consider a diverse portfolio of companies poised to benefit from the ongoing energy transition.

Now let’s discover the top 3 renewable energy stocks targeting 50% growth by 2028!

Top Renewable Energy Stocks: First Solar Energy (FSLR)

First Solar (NASDAQ: :FSLR) stands out as one of the most attractive renewable energy companies to buy in 2024. Since then, the company has seen explosive growth of over 60% year over year, and it’s just getting started.

First Solar is a leading solar panel manufacturer that is taking the industry by storm. What distinguishes the company from the competition is full vertical integration and good operational implementation. First Solar’s experience covers the entire solar value chain, from module manufacturing to project development and energy services. Moreover, artificial intelligence will increase demand for solar energy and energy storage solutions in data centers. In Q1FY24, revenue grew 45% year-over-year (YoY) to $794 million. Earnings per share (EPS) skyrocketed 456% year-over-year to $2.20 per share, with sequential gross margin expansion. As the company ramps up production capacity in 2024, FSLR stocks are certainly something to keep an eye on.

NextEra Energy (NEE)

The energy of the next era (NYSE: :FROM HOME) is a pioneer in renewable energy with a diversified portfolio of clean energy assets. As the world’s largest producer of wind and solar energy, NextEra is at the forefront of the clean energy transition.

NextEra Energy’s focus on innovation combined with strong financial performance positions it as a reliable investment choice. Discerning investors are looking toward solid pipeline opportunities to expand solar and energy storage capacity over the next few years. In fiscal year 2023, NEE stock posted record revenues and profits. Revenue increased 34% year-over-year to $28.11 billion and EPS increased 71% to $3.60 per share. They have produced extremely impressive results, with inflation and higher interest rates. The order book also remains strong as the company’s subsidiaries, FPL and NextEra Energy Resources, deliver best-in-class services. Moreover, management is forecasting a 10% dividend increase by 2026. This makes NEE stock one of the top renewable energy stocks today.

ON Semiconductor (ON)

ON Semiconductor (NASDAQ: :ON) is a global leader in energy management and sensor solutions, playing a key role in the development of renewable energy technologies. The company’s products are essential components in a variety of renewable energy applications, from solar inverters to electric vehicles and energy storage systems.

ON Semiconductor is having a difficult 2024 as it continues to cope with a slump in the electric vehicle market as well as a broader slowdown in renewable energy projects. However, this is only temporary and they have an exciting long-term growth trajectory ahead of them. ON Semi’s high-performance silicon carbide (SiC) platform is designed for a wide variety of industries. This includes automation, industrial, healthcare and aviation.

Having a large and diverse customer base allows a company to be less dependent on a single industry. Moreover, the expansion plan for the analog and mixed-signal segment will help accelerate growth in the long run. By increasing SiC wafer production in 2024, ON Semi is laying the foundation for accelerated growth over the next decade.

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.