3 Cheap Renewable Energy Stocks to Buy Now: May 2024

Industry Overview - The renewable energy sector is experiencing significant growth, with nearly 25% of U.S. electricity demand supplied by renewable sources in 2023, and projections indicating that renewables will account for 23.7% of total electrical power generation in the U.S. by 2028 [1][2] - Nuclear power is also gaining traction, with 22 countries, including the U.S., Canada, the UK, and France, pledging to triple their nuclear capacity by 2050 [2] Company Analysis: NexGen Energy (NXE) - NexGen Energy is positioned to benefit from a projected 127% increase in uranium demand by 2030, potentially reaching a 200% increase by 2040, with a possible 240 million-pound deficit in supply [4][5] - The company is focused on its Rook I project, which is nearing the final stages of permitting and is backed by approximately $930 million in cash and liquid assets [5][6] Company Analysis: Sunrun (RUN) - Sunrun is capitalizing on the growing interest in solar energy, with wind and solar sources growing faster than any other electricity sources in history [8] - The company's earnings are improving, with a reduction in EPS loss from $1.12 to 40 cents per share year-over-year, and a 15% increase in customer additions [9] - Goldman Sachs has reiterated a buy rating on Sunrun with a price target of $18, highlighting the company's shift towards more profitable growth and a cash generation guidance of $200 million to $500 million annualized run rate by Q4 2024 [10] Company Analysis: Southern Copper (SCCO) - Southern Copper's stock price has increased from around $82 to $123.79, driven by rising copper prices due to tight supply and demand dynamics [12] - Goldman Sachs has raised its year-end copper price target to $12,000 per ton, anticipating challenges for global mines to meet increasing demand, which could lead to significant inventory shortages by Q4 2023 [13]