Sector Spotlight: Green Energy Penny Stocks (VKIN, SPI, FCEL)

Tensions between Russia and Ukraine have brought to light the global need for energy independence. This focus on the green revolution has created significant opportunities for investors looking to ride the green wave right to the top through renewable energy stocks.

On top of energy independence, a growing global concern about climate change is also forcing the world to transition from carbon-based fossil fuels to alternative energy sources.

Socially responsible investing is also a major catalyst for the clean energy revolution. The trend will drive trillions of dollars’ worth of investment in renewable energy in the decades ahead.

One way to get in on the green energy boom is to invest in green energy penny stocks. These stocks can offer a great opportunity to get your feet wet in the energy sector and have the potential to yield high rewards as the demand for clean energy grows.

Let’s take a look at a few energy stocks under $5 that have potential to finish the year strong.

Viking Energy Group (OTC: VKIN) is a growth-oriented, diversified energy company. Through various majority-owned subsidiaries, Viking provides custom energy and power solutions to commercial and industrial clients in North America and owns interests in oil and natural gas assets in the United States.

VKIN offers investors a unique opportunity to participate in a two-way energy play: green and oil and gas. VKIN has multiple revenue streams for those who wish to hedge their bets with an investment in oil and gas assets, as well as ESG Clean Energy LLC’s green carbon capture technology.

At the moment, Viking Energy has oil and gas assets in the US that are worth about $96 million. Some of these are in Kansas. It is a dual-energy investment strategy.

Viking Energy CEO James Doris says, “We are a clean energy company which uses an IP license from Clean Energy, LLC, to generate clean energy… We are excited about what we have here,” he says. “We have a strong engineering department, and we have an ESG license for carbon capture-that is our most valuable potential asset.”

VKIN hopes to spread its green, clean energy technology around the world through its 62.5% stake in the Canadian engineering and marketing company Simson-Maxwell, Ltd. VKIN does this via Simson Maxwell’s endorsement by the National Health Service (NHS) Foundation in the U.K., which oversees hundreds of hospitals. Because of this, VKIN believes it can increase its sales power across the globe.

SPI Energy (NASDAQ:SPI) is a global renewable energy company that offers customers solutions for solar storage and electric vehicles (EVs). SPI is worth considering because they are headed in the right direction. That is reflected in the fact that SPI is rated a “buy” by the two analysts in charge of covering it.

Analysts gave SPI a buy rating as they believe the average price target on the stock is $7, significantly higher than its Friday closing price of $1.41.

On top of the strong rating from analysts, SPI also recently released its promising Q3 financials. Net sales were $43.2 million in the third quarter of 2022, up 10.9% from $39.0 million in the third quarter of 2021, and the operating loss was $13.8 million in the third quarter of 2022, down from $16.0 million in the third quarter of 2021.

SPI’s CEO commented, “We generated double-digit year-over-year growth during the third quarter, driven by continued performance of our strategic investments and solar project development initiatives. Notably, our manufacturing facility in California is now delivering Made-in-USA solar panels to our customers in the US.”

FuelCell Energy’s (NASDAQ: FCEL) platforms assist with power generation, carbon capture, hydrogen production, and energy storage for businesses and communities. Under the Inflation Reduction Act, it is one of many businesses that will be able to get tax credits.

FCEL’s CEO, Jason Few, recently commented, “FuelCell Energy’s fuel cells are manufactured in Connecticut with over 80 percent of all materials sourced within the United States. FuelCell Energy’s distributed energy platform can be deployed in economic and clean energy-challenged communities, further leveraging the IRA.”

Though the company’s Q3 financials saw a larger loss than expected of eight cents per share, as compared to expectations for an EPS loss of six cents, the company did report its strongest revenue growth in five years, with revenue coming in at $43.1 million. That number was significantly higher than analyst estimates of $35.8 million.

Renewable energy stocks are currently in high demand. As global awareness of the need to lessen our reliance on fossil fuels grows, many investors are turning to renewable energy businesses as a great way to capitalize on the industry’s expansion, and high demand.

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