4 Alternative Energy Stocks to Buy Amid Growing Investment Trends

Industry Overview - The Zacks Alternative Energy industry is divided into two main groups: one focuses on the generation and distribution of alternative energy, while the other is involved in the development and installation of renewable projects [2] - Global spending on clean energy reached a record $2.08 trillion in 2024, with expectations for similar or increased investments in the coming years, indicating solid growth opportunities for industry participants [2] Key Trends - Wind energy is a significant growth catalyst, with 154.6 gigawatts (GW) installed in the U.S. in 2024, and a projected 4.5% year-over-year increase in wind generation for 2025 [3] - The U.S. electric vehicle (EV) market is expected to grow at a compound annual growth rate (CAGR) of 10.5% from 2025 to 2029, driven by rising electrification and declining battery costs [4] Market Performance - The Alternative Energy Industry has outperformed both its sector and the Zacks S&P 500 composite over the past year, with a collective stock surge of 47.4% compared to a 1.8% decline in the Oils-Energy sector and a 14.3% gain in the S&P 500 [11] - The industry currently trades at a trailing 12-month EV/EBITDA ratio of 4.18, significantly lower than the S&P 500's 17.07 and the sector's 16.25, suggesting potential undervaluation [13] Company Highlights - OPAL Fuels: Expected to improve 2025 sales by 24.3% year-over-year, with earnings projected to increase by 97.9% [15][16] - Expand Energy Corporation: Anticipated to see a 183.8% increase in 2025 sales, with earnings expected to rise by 298.6% [17] - Bloom Energy: Reported a 60.4% year-over-year revenue increase, with a long-term earnings growth rate of 40.8% [19][20] - Constellation Energy: Achieved a 38.1% year-over-year increase in adjusted EPS, with a long-term earnings growth rate of 12.5% [22]