3 Green Stocks for Earth Day - Analyst Blog

The reason for this is that the two may not actually be competing for the same market. This is because while renewable energy is largely used for electricity generation, oil is utilized as fuel for heaters and cars. Admittedly, the prospects of electric cars and hybrids have been hit by the oil price slump, but the adoption of such vehicles is far from widespread.

Additionally, the cost of solar panels has declined rapidly over the last five years. The price of solar PV modules has dropped 75% since 2009. In addition, the cost of electricity generated using such modules has declined by half since 2010.

Market watchers also believe that as the solar and wind generated power sectors experience growth, related industries will benefit. Similarly, the rising awareness about the effect of pollution and radiation levels has led to growth of related companies.

Our Choices

To mark Earth Day, we have chosen three stocks which are good green picks. Additionally, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for value investors in the near term. The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount.

Our research shows that, stocks with Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or #2, offer the best upside potential. Based upon the above criteria, we have selected three stocks. Not only do these stocks have a favorable Zacks Rank but also a value score of ‘A’ or ‘B.’

NextEra Energy Partners, LP NEP engages in owning, operating and acquiring contracted clean energy projects. It owns interests in wind and solar projects primarily in North America.

NextEra Energy Partners holds a Zacks Rank #1 (Strong Buy) and has a Value Style Score of ‘A’. The stock has a dividend yield of 1.9%. The Zacks Consensus Estimate for the current year EPS has been revised more than 3.4% upward over the last two months.

Landauer Inc. LDR provides analytical services for the detection of occupational and environmental radiation exposure. Landauer offers medical physics services as well as medical products related to radiology.

Apart from a Zacks Rank #1 (Strong Buy), Landauer has a Value Style Score of ‘B.’ The stock has a dividend yield of 3.2%. The Zacks Consensus Estimate for the current year EPS has been revised 15.1% upward over the last two months.

Ormat Technologies Inc. ORA develops, manufactures and markets innovative power systems. The company has two operating segments. Its electricity segment is a renewable energy producer while its product segment offers related equipment.

Ormat Technologies holds a Zacks Rank #1 (Strong Buy) and has a Value Style Score of ‘B.’ The stock has a dividend yield of 0.9%. The Zacks Consensus Estimate for the current year EPS has been revised 6.7% upward over the last two months.

The prospects of clean energy and related industries will only continue to improve in the future. Rising awareness about environmental issues will also contribute to this scenario. This is why these stocks would make prudent additions to your portfolio.