Wednesday, February 3rd, 2010
Top 3 High-Powered Energy Growth Stocks
EnerNOC, Inc. (NASDAQ:ENOC), Peabody Energy Corporation (NYSE:BTU), and Trina Solar Limited (NYSE:TSL) are three high-powered energy growth stocks to watch for 2010.
A Win-Win Solution for Energy Management
EnerNOC, Inc. (ENOC, Free Analysis), an intermediary energy management company, is rapidly transforming the way the world uses energy. The company is the largest in its industry and helps commercial, institutional and industrial organizations use energy more intelligently, pay less for it, and generate cash flow that directly benefits their bottom line.
The company’s demand-response technology enables thousands of business to get paid for reducing their energy usage during peak demand periods, while utility customers get access to clean, reliable capacity where and when it is needed most. Essentially, this creates a win-win situation that will only grow as demand increases for efficient energy solutions.
Coal Appears Set for a Strong Rebound
Peabody Energy Corporation (BTU, Free Analysis), the world’s largest private-sector coal company, also looks promising as the commodity appears set for a rebound. Demand from Asia appears increasingly robust, while a manufacturing report this week in the U.S. has led to speculation that the market could turn around sooner than expected.
While there has been an increased focus on “green” energy solutions, the world continues to consumer large amounts of “dirty” coal. In fact, global coal use is expected to grow by 55% through 2025, which means that coal producers like Peabody will remain well-positioned to profit. And with the recent downturn, there is a lot of upside if it occurs sooner-than-expected.
Trina Remains a Low-Cost Solar Producer
Trina Solar Limited (TSL, Free Analysis), a low-cost integrated solar producer in China, also remains a solid “green” energy play for 2010. The solar industry experienced a substantial decline in 2009 when governments fell on hard times and reduced their subsidies. Meanwhile, the wild card in recent months has been Germany’s decision to reduce its feed-in tariffs.
Trina Solar remains a strong play in the sector for several reasons. First, the company recorded record third quarter shipments of 123MW. Second, the company’s continued cost improvements from lower poly prices and processing cost savings has helped boost gross margins to 28.5%. Finally, the firm’s balance sheet remains strong after a cash influx from a recent equity issuance.
Written by Simon Monger
