3 Clean Energy Stocks to Sell in July Before They Crash & Burn

Core Viewpoint - The clean energy sector is facing significant challenges due to the depletion of initial subsidies and rising interest rates, leading to skepticism among investors regarding clean energy stocks [1][2]. Group 1: Industry Overview - The energy sector includes various subindustries such as natural gas, coal, oil, and alternative clean energy [1]. - There has been a surge in consumer demand for clean energy, prompting government support for large subsidy projects like the Inflation Reduction Act (IRA) [1]. - Many renewable energy companies are running out of initial subsidies nearly two years after the IRA was passed, while the Federal Reserve's interest rate hikes discourage investments in large renewable projects [1]. Group 2: Company-Specific Analysis - Sunnova Energy (NOVA): - The company specializes in residential solar panels and has over 430,000 customers [3]. - In 2022, Sunnova experienced a -158.57% net income growth due to negative cash flow and decreased demand for solar energy [3]. - AES (AES): - AES is a major power generation and utility company with operations in 15 countries [5]. - In 2023, AES completed 3.5 gigawatts (GW) of renewable energy projects, doubling its capacity from the previous year [6]. - Despite project completions, AES reported a 5% decrease in revenue and a 20% increase in debt, with the stock losing 10% of its value year-to-date [6]. - Enphase Energy (ENPH): - Enphase is known for its microinverter-based solar and battery systems and has seen its stock price rise from under $10 to nearly $350 per share in 2022 [7]. - The company faces a predicted 35% decline in revenue due to rising interest rates and the expiration of subsidies, with a forward price-to-earnings ratio over 40 [8].