Finding Winners in the Booming Alternative Energy Market for 2023 and Beyond

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Finding Winners in the Booming Alternative Energy Market for 2023 and Beyond

By: Ben Rains
February 8, 2023

Energy is the backbone of the dynamic U.S. and global economy. Yet many people take energy and fuel almost entirely for granted until prices rise or there are some major disruptions to the industry. Last year served as a perfect and necessary example of why countries, companies, and Wall Street need to invest in energy and fuels of all types.

Fossil fuels are poised to play the dominant and most crucial role in the U.S. and around the world for the foreseeable future. But alternative, non-fossil fuel energy is where much of the major industry growth and innovation is coming from right now.

Renewable's share of U.S. electricity generation already doubled over the last decade. And alternative energy accounts for roughly 75% of the growth in overall global energy investment.

The U.S. Energy Information Administration projects that renewables will once again double their share of the U.S. electricity generation mix by 2050. Plus, the energy industry turmoil caused by the Russian invasion helped spark a serious revival of a sleeping energy powerhouse.

Nuclear energy and next-gen nuclear are, without a doubt, going to play a much larger role going forward. There are also less well-known, more speculative areas of the alternative energy market grabbing a ton of attention and investment dollars.

All in, the growth runway for solar, wind, nuclear, battery storage, hydrogen fuel cells, and beyond is mind-blowing. Today we explore some areas and specific alternative energy stocks for investors to consider buying in 2023 and for their long-term portfolios.

Continued . . .

Market Forces + Government Support

Some might be a bit nervous about investing in anything growth related right now given the beating that technology and growth-heavy stocks took amid rising interest rates and fading earnings.

All growth-focused areas are not, of course, created equal. And despite sounding somewhat speculative, many non-fossil fuel energy stocks thrived during and prior to the 2022 market downturn. Tons of alternative energy firms operate established, proven businesses that also benefit from tons of public and private investment.

The U.S. and other powerful governments around the world are spurring growth through tax incentives, direct spending, and other means. At the same time, Wall Street and private investors are pouring trillions of dollars into alternative energy projects, companies, and upstarts the world over.

The forces driving alternative energy acceleration and adoption have prompted oil-producing nations such as the United Arab Emirates and fossil fuel companies to invest hundreds of billions of dollars into alternative energy efforts.

‘Big Oil’ companies are attempting to transform into ‘Big Energy’ companies, while up-and-coming pure-play alternative energy firms race to become the next wave of energy titans.

Elsewhere, technology giants such as Amazon and global financial powers such as JPMorgan are investing billions today in new energy technology and infrastructure, with plans to deploy trillions in the coming decades as part of a global effort to reshape the energy landscape and reduce emissions.

Growth Runway

The expansion of wind and solar helped renewables grow their share of the U.S. electricity generation mix from 10% in 2010 (when it was mostly hydroelectric) to 20% last year.

Adding nuclear to non-fossil fuels means that alternative energy already makes up 40% of the U.S. electricity mix. Meanwhile, renewables and nuclear account for roughly 20% of total U.S. primary energy consumption, which is far different than just electricity, compared to 11% for coal, 32% for natural gas, and 36% for petroleum.

Alongside the huge growth runway ahead for solar and wind and the second life for nuclear, Wall Street is searching high and low for the best and brightest names in battery storage technologies, hydrogen fuel cells, and beyond. Many of these stocks crushed the market over the last five years and during the 2022 downturn.

For instance, one of the larger alternative energy ETFs, iShares Global Clean Energy (ICLN) is up 115% in the last five years vs. the Nasdaq’s roughly 50%. And ICLN climbed around 12% in the last 12 months to blow away the Nasdaq’s -18% decline.

I believe that trend will stay in place in the new year and beyond. Over the long term, many renewable energy stocks have almost unimaginable upside.

Where to Find the Hottest Picks

As Zacks Energy Strategist, I’ve combed through opportunities in solar… hydrogen fuel cells… next-gen nuclear… rare earth metals needed for batteries… and more. I’m also keeping a close eye on traditional energy companies pouring money into radical new energy technology.

Today, I have my sights set on a small number of high potential stocks across some of the most vital areas of the alternative energy landscape, including:.

a software firm using machine learning technology to harvest maximum energy from solar panels…
a nuclear energy company developing the next-generation of safer, more efficient nuclear reactors…
a major electric utility making investments to double its renewable production.. with help from the U.S. government…

… and 7 more breakthrough stocks.

I’m inviting you to check these stocks out inside of the exclusive Alternative Energy Innovators portfolio.

This portfolio is nearly always closed to the public. But because the stocks on my radar are so promising and the timing so critical, I’m temporarily opening the doors so you can take advantage.

If you’re interested in profiting from the companies that will power the world of tomorrow, this is an opportunity you should not miss.

There’s no time to delay. Alternative Energy Innovators is only accepting new members until midnight, Thursday February 9.

See Our Top Energy Stocks Now & Claim Your Free Bonuses »

Thanks and Good Investing,

Ben Rains - signature
Ben Rains

Ben is Zacks Energy Stock Strategist. He manages our newest portfolio, Alternative Energy Innovators.

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