Clean Energy Sector

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Solar and Semiconductor Stocks for Long Term Investors

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  • Many semiconductor stocks are on sale, and investors who buy low can see their returns go supersized in they play their cards right.
  • First Solar (FSLR): A new tax credit for manufacturers of photovoltaic solar modules will boost profits.
  • Pineapple Energy (PEGY): The small company has big plans for a national network.
  • ON Semiconductor (ON): The company makes semiconductors that are used in automotive, communications, computing, consumer, industrial, lighting, medical, and military applications.
  • Amkor Technology (AMKR): The company’s stock is up by 30% since July.
  • Broadcom (AVGO): This is a great way to also invest in 5G. Broadcom designs and develops semiconductors for the wireless and broadband communication industry.
  • Enphase Energy (ENPH): The company’s products allow homeowners and businesses to gather and store solar power to use during a grid failure.
  • Inpinj (PI): Its products can be used by retailers to prevent theft, food suppliers to help record use-by dates, pharmaceutical companies and fleet management.

Once considered to be a cash cow for investors, finding semiconductor stocks to buy and hold can be daunting these days.

The iShares Semiconductor ETF (NASDAQ:SOXX), an exchange traded fund that holds 30 leading semiconductor stocks, is down more than 35% so far this year as a chip shortage continues to stress the industry.

But if you’re a believer in technology and realize that semiconductors will continue to be in high demand, such a drop is pretty interesting for long-term investors.

Many of these semiconductor stocks to buy and hold are on sale, and investors who buy low can see their returns supersized if they play their cards right.

There are some indications that the chip shortage could begin to ease. The CHIPS and Science Act, passed by Congress and signed into law this year, is designed to increase semiconductor research and production in the U.S. Already, companies are making plans to expand their manufacturing bases in the U.S.

Where does that leave us? It’s time to go bargain shopping for semiconductor stocks to buy and hold.

The Portfolio Grader can be a great tool to help us find the best semiconductor stocks to buy now. The Portfolio Grader is my free tool that evaluates and grades stocks based on qualitative metrics and buying momentum.

 First Solar (FSLR)

When you think about First Solar (NASDAQ:FSLR), you probably think first about solar power and not semiconductors. That’s perfectly reasonable. FSLR is one of the most well-known solar stocks out there.

It’s also one of the best-performing stocks of the year. So far in 2022, FSLR stock is up by more than 70%, with plenty of reasons to think the trend will continue.

The company announced that it will invest up to $1.2 billion to scale production of photovoltaic (PV) solar modules, which could allow it to increase its power capabilities by more than 10 gigawatts by 2025.

The company says each of those modules features a layer of Cadmium Telluride semiconductor that’s thinner than a human hair. And it’s researching more ways to make products with an even thinner semiconductor layer.

The potential here is clear, particularly with the emergency of the Inflation Reduction Act in the U.S. that restores a tax credit for U.S. manufacturers that start production of PV projects before 2025. FSLR stock has a “B” rating in the Portfolio Grader.

[Alert: Don’t Make This Million-Dollar Mistake]

Pineapple Energy (PEGY)

This is one of the smallest and least-known stocks on this list. But never fear – even though Pineapple Energy (NASDAQ:PEGY) is a true penny stock at fewer than $3 per share, and even though it has a market capitalization of barely $20 million, there are plenty of reasons to be bullish about this energy company.

While Pineapple’s core market is in Hawaii, the company actually has Minnesota roots. Communications Systems, which previously traded on the Nasdaq exchange as JCS, bought out Pineapple earlier this year and changed its name and ticker accordingly.

Just prior to the merger, Pineapple had already bought two Hawaii solar companies, Hawaii Energy Connection and E-Gear. That gives the new Pineapple Energy a solid position in the Hawaii market.

Pineapple aims to use that as a launching point for building a nationwide footprint in offering solar solutions.

The company’s Q2 earnings report (its first since the merger) shows promise. Revenue was $5.9 million after being zero a year ago, and earnings per share was 15 cents – a welcome profit after the company lost 74 cents per share a year ago.

PEGY stock was trading at less than $1 per share at the beginning of the month but is up more than 215% since then. PEGY has a “B” rating in the Portfolio Grader.

ON Semiconductor (ON)

ON Semiconductor (NASDAQ:ON) is a much less volatile play than PEGY, but it also has more of a track record to go by. It did get a big boost this summer when it joined the all-important S&P 500 index.

While much of the market is still deep in the red, ON Semiconductor is nearly breaking even, down less than 2% so far on the year. In a year like this, having a stock that’s flat is definitely better than one that’s been handing out losses right and left.

The company makes semiconductors that are used in automotive, communications, computing, consumer, industrial, lighting, medical and military applications. That’s a great place to be in as companies are clamoring for semiconductors and the CHIPS Act makes buying semiconductors from U.S. companies easier.

Earnings in the third quarter continued the company’s winning ways – revenue of $2.19 billion beat analysts’ expectations for $2.12 billion. EPS of $1.45 per share was better than the $1.31 the Street expected.

ON has an “A”  rating in the Portfolio Grader.

Amkor Technology (AMKR)

Amkor Technology (NASDAQ:AMKR) packages and tests integrated circuits for chip manufacturers. The company has a pretty big footprint outside of it’s home base in Arizona, with factories also in China, Japan, South Korea, Malaysia, the Philippines, Portugal and Taiwan.

Although it has faced some challenges this year – the company’s operations in Shanghai were hurt by China’s extended Covid-19 shutdown – but the stock has rallied as of late, up nearly 30% since early July.

Third-quarter earnings of $2.08 billion and EPS of $1.25 per share easily beat analysts’ expectations and showed strong year-over-year growth (revenue was up 24% from a year ago, with net income of $306.1 million being  an increase of 69%).

AMKR stock has a “B” rating in the Portfolio Grader.

[How to Get $2,500 Back Into Your Pocket Every Year? (Without Buying a Single Stock)]

Broadcom (AVGO)

I’m a big fan of Broadcom (NASDAQ:AVGO) stock because of its position in the 5G space.

Broadcom designs and develops semiconductors for the wireless and broadband communication industry.

That’s a great opportunity for investors because I’ve long been convinced that the applications of 5G could be life-changing. The ability to get lightning-quick internet speeds even when on Wi-Fi opens the doors for smart cities, machine learning, AI, virtual reality, and more.

Broadcom is also buying enterprise software company VMWare (NYSE:VMW) in a $61 billion deal that will allow it to expand into cloud computing.

Q3 revenue of $8.46 billion and earnings of $9.73 per share beat analysts’ expectations for $8.41 billion and $9.56 EPS.

AVGO stock has a “B” rating in the Portfolio Grader.

Enphase Energy (ENPH)

Another solar energy stock, Enphase Energy (NASDAQ:ENPH) makes and markets solar energy inverters and battery storage products. The company’s products allow customers to gather solar power, store it on a battery and use it in the event of a power grid failure.

Enphase will be able to use a smartphone app to direct power to essential appliances, which will help them to maximize their power reserves.

Earnings in the third quarter topped analysts’ estimates for the top and bottom lines as Enphase stock kept its hot streak intact. ENPH is up 55% so far on the year, including an 11% gain over the last month.

ENPH stock has an “A” rating in the Portfolio Grader.

Inpinj (PI)

Based in Seattle, Inpinj (NASDAQ:PI) is a pretty cool company. It manufactures tag chips that use radio-frequency identification (RFID) technology to allow users to track an item’s identity, location and authenticity.

Its products can be used by retailers to prevent theft, food suppliers to help record use-by dates, pharmaceutical companies and fleet management. Its tags are also a critical tool for the Internet of Things, as it allows computers to track inventory and the supply chain.

PI stock has had a pretty good year as well, up 16% in 2022, and up 22% just in the last month. Third-quarter earnings also continued the company’s trend of beating expectations, as it reported $68.27 million in revenue of 34 cents EPS – both better than the forecasted $64.79 million revenue and 20 cents EPS.

PI stock has an “A” rating in the Portfolio Grader as well.

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Read more from Louis Navellier at InvestorPlace.com

Turning Clean Energy Solutions Into Profit

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California is canceling the gas car.

On August 18, Governor Gavin Newsom notched a win when the California Air Resources Board approved his plan to phase out gas cars…

Starting in 2026, 35% of cars sold must be electric vehicles (EVs). That will increase to 100% EVs by 2035.

This is the same California that’s been battling power outages every summer. In 2020, a series of rolling blackouts left over 500,000 residents without power.

Between 2017 and 2019, the state saw its blackouts increase by about 20% yearly… for a total of more than 50,000 in just two years.

But California isn’t alone here. Overtaxed power infrastructure is a national problem.

The U.S. built most of its power grids in the 1950s and ‘60s. And we only designed the grids to last 50 years before needing major overhauls.

A portion of the monthly electric rates we pay is supposed to go toward maintaining and upgrading these grids… But all too often, utility companies put off major improvements in favor of profits.

And the result is a 10x increase in power outages affecting 50,000 people or more since the 1980s.

On top of that, outages from major storms like hurricanes and blizzards have more than doubled over the past 20 years. 

In 2020 alone, the average American experienced over eight hours of power disruption – a 73% increase from 2019.

So California’s already taxed power grid will have to support the charging of an estimated 32 million EVs in the coming decade… That’s going to be a big problem.

Here’s why I’m telling you this…

As Daily editor Teeka Tiwari says, “With every big crisis comes even bigger opportunities…”

And today, we have a chance to invest in a solution for America’s energy crisis.

[Louis Navellier: The #1 Electric Vehicle (EV) Battery Stock of 2022]

America’s Failing Energy Infrastructure

When President Joe Biden signed the $1.2 trillion Infrastructure Investment and Jobs Act late last year, Congress earmarked about $65 billion to improve the nation’s power grid.

That number is woefully short of the estimated $7 trillion needed to modernize our current power infrastructure.

As a result, Congress has spent the months since trying to stretch those dollars by promoting “distributed energy resources,”… a fancy way of telling Americans that they’ll have to become their own mini-power grids.

California is a party to this strategy. It now offers several programs that reward homeowners for installing distributed energy resources like solar panels and energy storage systems (ESS).

Some utilities will offer a $1,000 rebate for every kilowatt-hour (kWh) of ESS installed. And California will pause property tax rate hikes until 2024 on properties that install solar panels.

Along with other federal and regional incentives, California hopes these efforts are enough to decentralize the grid for the coming EV wave… And this is where we’ll find opportunity.

Turning Clean Energy Solutions Into Profit

California is home to over 39 million people. More than Canada or Australia. And it would be the world’s fifth-largest GDP if it were a nation… so it uses a lot of electricity.

Add in the seven other states that intend to follow California’s lead… and that’s 40% of the nation’s car sales going electric over the next thirteen years.

So an estimated 57.8 million homes are likely to adopt ESS to keep them charged.

You can get immediate exposure to this trend by investing in the iShares Global Clean Energy ETF (ICLN)…

The ICLN index fund holds large, established companies. So the growth potential isn’t the same as a private start-up… But it’s up 6% year-to-date compared to the Nasdaq’s 23% decline.

It will also give you broad market exposure to companies like Enphase Energy and SolarEdge Technologies.

Enphase is one of the largest producers of home ESS. And SolarEdge builds power management systems for home solar panels.

So as waves of consumers adopt EVs and home ESS over the next two years, I believe ICLN could double your money in that same period.

And if current trends are any indication, it’s only a matter of time before even more Americans make the switch… so preparing for that today could potentially set you up for a windfall of profits in the years ahead.

Invest with conviction,

Anthony Planas signature

Anthony Planas
Analyst, Palm Beach Daily

[Nomi Prins: 10x Gains on a Small Firm Disrupting a Critical American Industry]

Read more from Anthony Planas at PalmBeachGroup.com

Buy the Best EV Stocks at a Massive Discount…

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Here are seven stocks that could gain significant traction through the second half of 2022

  • The market selloff in tech stocks offers investors a golden opportunity to buy oversold EV stocks at their most attractive valuations in years.
  • ChargePoint (CHPT): The leading name in the electric vehicle charging space more than doubled its Q1 revenue year-over-year.
  • Fisker (FSR): The Fisker Ocean is expected to start production at the Magna plant in November 2022.
  • Lucid Group (LCID): The company announced plans for its first overseas manufacturing facility in Saudi Arabia.
  • Nio (NIO): Deliveries in June jumped 60% year-over-year.
  • Rivian Automative (RIVN): Management is confident about delivering its full-year goal of manufacturing 25,000 EVs in 2022.
  • Tesla (TSLA): Reported selling a record 78,906 electric vehicles in June from its Shanghai factory.
  • XPeng (XPEV): The company announced plans to launch its new flagship SUV, the G9, in September.

Oversold electric vehicle (EV) stocks is our topic for today. The market selloff in tech stocks has provided investors with a golden opportunity to buy high-growth oversold EV stocks at their most attractive valuations in years.

For instance, the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is down around 25% year-to-date (YTD) compared with an almost 18% decline in the benchmark S&P 500 index during the same period.

The boom in EV stocks is poised to accelerate in the coming years. The Global EV Outlook 2022 report by International Energy Agency highlights that in 2021, EV sales doubled year-over-year (YOY) to a new record of 6.6 million.

Almost 10% of global car sales were electric in 2021, four times the market share in 2019. Regular InvestorPlace.com readers will likely know growth in EV sales was primarily led by China, accounting for half of the growth.

With that information, here are seven oversold EV stocks that could gain significant traction through the second half of 2022:

ChargePoint Holdings (CHPT)

  • 52-week range: $8.50 – $28.72

ChargePoint (NYSE:CHPT) is the market leader in the EV charging space. It has around 175,000 charging spots across Europe and North America and boasts a market share of over 65%.

On May 31, Chargepoint announced first quarter (Q1) fiscal-year 2023 results. Revenue came in at $81.6 million, increasing 102% YOY. Net loss declined to 27 cents per diluted share, down from 83 cents a year ago. At the end of the quarter, cash and equivalents stood at $541 million.

Revenue generated from networked charging systems came in at $59.6 million, representing an increase of 122% YOY. As Chargepoint continues to expand its network of charging stations, subscription revenues are expected to account for a higher portion of its total revenue.

Management forecasts to bring in revenues of $96 million to $106 million for the second quarter. Such an expansion would represent an increase of roughly 80% YOY.

CHPT stock was recently down 37% YTD. Shares are trading at 15.6 times sales. Meanwhile, the 12-month median price forecast for ChargePoint stock stands at $20.

[Alert: 1st Gas Station In America To No-Longer Offer Gas]

Fisker (FSR)

  • 52-week range: $7.95 – $23.75

Next up on our list is Fisker (NYSE:FSR), a speculative, pre-revenue EV manufacturer. Fisker Ocean, set to start production in November 2022, is sold exclusively through the Fisker app, i.e., without a dealer network.

Wall Street was initially attracted to its asset-light business model based on contract manufacturing. However, declining investor appetite for pre-revenue companies have taken the focus away from companies like Fisker.

On May 4, Fisker issued Q1 metrics. Net loss came in at 41 cents per diluted share, down from a net loss of 63 cents a year ago. Cash and equivalents ended the period at $1.04 billion.

In Q2, the company announced the launch of its second vehicle, the Fisker PEAR. The new EV model is expected to start production in 2024 at Foxconn’s facility in Ohio. Fisker anticipates reaching an annual manufacturing capacity of 250,000 PEARs in the next couple of years. Additionally, the company plans to manufacture 50,000 cars in 2023 and triple its Ocean SUV model production by 2024. The automaker currently has over 40,000 reservations for the Ocean.

This speculative EV play was recently down 42% YTD. The 12-month median price forecast for FSR stock is $15.

Lucid (LCID)

  • 52-week range: $13.25 – $57.75

Lucid (NASDAQ:LCID) focuses on luxury EVs and developing cutting-edge EV technologies. The vertically integrated company currently manufactures vehicles in Arizona.

The EV maker reported Q1 metrics on May 5. Revenue declined from $313 million to $57.7 million on deliveries of 360 vehicles to customers. Net loss declined to 5 cents per diluted share, down from $89.29 a year ago. Cash and equivalents ended the period at $5.43 billion. Management has reiterated its production volume outlook of 12,000 to 14,000 vehicles for 2022.

On May 18, Lucid announced plans for its first overseas manufacturing facility with its partners in Saudi Arabia. The new factory is expected to bring EV manufacturing to the country with a capacity of 155,000 units. The EV maker has also signed an agreement with the Saudi Arabian government to purchase 50,000 EVs with an option to buy additional 50,000 EVs any time within ten years.

So far in 2022, LCID stock is down 52%. Shares are trading at 394 times sales. Analysts’ 12-month median price forecast for Lucid Group stock is $33.

Nio (NIO)

  • 52-week range: $11.67 – $47.38

Chinese EV group Nio (NYSE:NIO) has been focusing on the premium segment, including technologies in artificial intelligence (AI) and autonomous driving. Over half of the global EV sales come from China. Therefore, Nio’s quarterly metrics get Wall Street’s close attention.

On Jun. 9, Nio announced Q1 results. Revenue came in at $1.56 billion, up 24.2% YOY. Adjusted diluted net loss per share was 13 cents, compared with 3 cents in the prior-year quarter. Cash and equivalents ended the period at $8.4 billion.

Q1 vehicle deliveries grew 28.5% YOY, despite an increase in price for all EV models. Deliveries in June jumped 60% YOY to almost 13,000 vehicles, highlighting the auto industry’s rebound in China. Management expects to begin deliveries of its upcoming new ES7 SUV and revised versions of ES8, ES6, and EC6 SUVs in August.

Meanwhile, Nio is on track to expand its business in Europe beyond Norway to Germany, Sweden, the Netherlands, and Denmark in the coming months. Management projects Q2 revenue to increase by 10.6% to 19.4% YOY, supported by deliveries of 23,000 to 25,000 EVs.

NIO stock has lost about a third of its value this year. Shares are trading at 6.4 times sales. The 12-month median price forecast for Nio stock stands at $30.

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Rivian Automotive (RIVN)

  • 52-week range: $19.25 – $179.47

Rivian Automotive (NASDAQ:RIVN) focuses on electric sport utility vehicles and pickup trucks. Its portfolio of vehicles includes the R1T electric pickup truck, R1S electric SUV, and Electric Delivery Van.

The EV manufacturer reported Q1 financials on May 11. Total production was 2,553 vehicles, generating a revenue of $95 million. Adjusted net loss declined to $1.43 per diluted share, down from $4.10 a year ago. Cash and equivalents ended the period at $16.97 billion.

At the end of Q1, the company boasted a solid backlog of more than 90,000 EVs between its R1T pickup and R1S SUV, as well as 100,000 orders for its commercial delivery van from Amazon (NASDAQ:AMZN).

In Q2, Rivian ramped up production with 4,401 vehicles and delivered 4,467 EVs. Management is confident it can deliver its full-year goal of manufacturing 25,000 vehicles in 2022. However, Wall Street is not fully convinced that Rivian can produce at twice the Q2 rate in the second half of the year. Otherwise, Rivian’s full year goal is not attainable.

RIVN stock was recently down nearly 71% YTD. Shares are trading at 192 times sales. Wall Street’s 12-month median price forecast for Rivian stock stands at $45.

Tesla (TSLA)

  • 52-week range: $620.57 – $1,243.49

Tesla (NASDAQ:TSLA) is currently the global leader in the EV space with a market share of over 60% stateside. However, recent research warns “Tesla’s US EV market share will plummet to just 19% by 2024.”

Tesla issued Q1 results on Apr. 20. Revenue jumped 81% YOY to $18.8 billion. Adjusted earnings came in at $3.22 per diluted share compared to 93 cents a year ago. Cash and equivalents ended the period at $17.51 billion.

Recent pandemic lockdowns in Shanghai have suspended production at Tesla’s most profitable plant. In June, the plant resumed production and sold a record 78,906 vehicles from its Shanghai factory. But in Q2, Tesla delivered only 254,695 vehicles. Before the lockdowns, estimates had been for 350,000 EVs.

Meanwhile, supply chain disruptions have also decreased production at Tesla’s new factories in Germany and Texas. Wall Street is paying close attention to those two new Tesla plants. They should help the EV maker reach the multi-year 50% annual production growth target.

TSLA stock was recently down almost 34% YTD. However, it is still richly valued at 65.8 times forward earnings and 13.7 times sales. Analysts’ 12-month median price forecast for Tesla stock is at $950.

XPeng (XPEV)

  • 52-week range: $18.01 – $56.45

China-based XPeng (NYSE:XPEV) has become highly popular among the growing base of technology-savvy middle-class consumers in the country. Therefore, many analysts watch metrics from XPeng and Nio together. For instance, in June, “XPeng logged a bit more (15,295), but NIO also had a solid month (12,961).”

The EV maker released Q1 financials in late May. Revenue increased 152.6% YOY to $1.18 billion. Adjusted net loss stood at 28 cents per diluted share, up from 13 cents a year ago. Cash and equivalents ended the period at $6.58 billion.

In June, XPeng announced it had reached a milestone of 200,000 cumulative smart EV deliveries. It will also launch a new flagship SUV, the G9, in September.

In 2022, XPEV stock was recently down nearly 42%. Shares are trading at 7.1 times sales. The 12-month median price forecast for Xpeng stock stands at $36.85.

[Nomi Prins: 10x Gains on a Small Firm Disrupting a Critical American Industry]

On the date of publication, Tezcan Gecgil, Ph.D., did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Read more from Tezcan Gecgil at InvestorPlace.com

Does this Energy ETF have More Gas in the Tank?

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Energy stocks are the talk of the town again after losing over 14% last week. After gaining over 70% in 2022, the Energy Select Sector SPDR Fund (NYSE: XLE) was close to the last safe spot for investors. XLE stock is still up 30% YTD, and many signs signal the run is not over yet.

At the same time, with talks of a recession picking up, is it time to give up on energy? Many energy stocks are trading back to prices before the war in Ukraine broke out. But oil futures are still up over 50% from last year. And the gas situation is even more of a challenge.

Gas futures are up over 100% from last year, and prices at the pump are right below all-time highs. Meanwhile, the Fed and Biden administration are using all the tools available to bring some relief. The Fed just raised interest rates by the largest amount since 1994.

Not only that, but President Biden tapped the strategic oil reserve, is working with OPEC to increase supply, and calling out oil companies to do their part.

Will it make a difference? XLE stock looks ripe for a bounce. Here’s what you should know before buying.

No. 4 Commodities Often Run in Multi-Year Cycles

When the commodity market rallies, it can last years before turning over. In fact, these extended rallies are called “Super Cycles.”

For example, in the 1930s, commodities rallied as the U.S. prepared for WW2. Then again, in the ’90s, as industrialization swept across the nation. And the most recent, peaking around 2012-14 as emerging markets developed.

Researchers have several reasons to explain why these cycles happen.

  1. New projects take years to complete.
  2. Supply and demand drive commodity prices.
  3. A specific event usually triggers rallies.

The most important thing to know when considering buying XLE stock is knowing that commodity prices, such as gas and oil, are driven by supply and demand. With this in mind, energy prices are rapidly rising due to higher demand and a limited supply.

For one thing, over 100 oil and gas companies went out of business during the pandemic. As travel halted, energy demand fell off a cliff. Meanwhile, energy companies had no choice but to go bankrupt.

Fast forward a year, the economy reopens again, and demand shoots through the roof. But, with less capacity, companies are struggling to keep up.

[First Look: Love investing in disruptive new companies? Your shot at the next Tesla!]

No. 3 Energy Supply Is Still a Concern

After underinvesting for many years leading up to the pandemic, the industry was due for a shakeup. As leaders promised a new “green” future, investors poured money into renewable energy investments. As a result, the oil industry cut back on projects and was forced to abandon others.

So, supply was limited to begin with. And then Russia invading Ukraine was the final straw. NATO leaders decided to ban or restrict oil coming from Russia.

The oil ban caused a ripple effect across energy markets as oil prices briefly soared over $120 a barrel. Meanwhile, the gas situation is even more challenging as refining capacity in the U.S. nears maximum. To explain, refiners turn oil into gas and other by-products. Many companies that went out of business were either E&P (drilling) or refiners.

In fact, the latest data from the Energy Information Administration (EIA) shows refinery capacity is at 94%, the highest since the pandemic.

With this in mind, there’s only so much capacity in the U.S. to make gas. In other words, supply is limited. So, by raising interest rates, the Fed is going after demand. To slow demand, the Fed is makes borrowing more expensive.

For example, higher interest rates may mean fewer vacations or travel. As a result, less gas is being used in the economy, whether by car or plane.

No. 2 XLE Stock Was Due for a Pullback

This year, energy has been the only strong sector in a very weak market. To illustrate, XLE stock gained over 68%, hitting a 52-week high of $93.3 per share earlier this month.

But with talks of a recession and a bear market looming, XLE shares gave in like the rest of the market. Eventually, every sector or market gets sold during a bear market. And last week, the time came for energy stocks.

At the same time, XLE shares reached overbought levels according to the Relative Strength Index (RSI). Though XLE stock hit overbought on the daily, weekly, and monthly charts, quarterly sits below 60.

Meanwhile, many energy stocks are trading back to prices before the war in Ukraine started. For instance, EOG Resources (NYSE: EOG), one of the largest natural gas companies, sits at $111, the same price as when the war started.

Although this may be true, the uptrend in most oil and gas stocks is still intact. For one thing, many energy stocks are trading above their 200D SMA, a sign of momentum.

[Don't Miss: Click Here for Details on the Shocking New EV]

Lastly and most importantly, the stocks fell to critical levels of support. Not only is XLE stock sitting on this year’s volume-weighted average price (VWAP), but it’s also right around a historic level of resistance.

XLE stock was due for a pullback, but will it continue to crack? Or was it just a shakeout?

No. 1 Hedge Funds Buying with Record Cash Flow

Energy has been one of the stock market’s only places to earn a return this year. Then again, oil companies are making record cash flows with high energy prices. And as a result, they are splitting the profits with investors through dividends and buybacks.

You may have even heard President Biden saying Exxon Mobile (NYSE: XOM) made “more money than god” this year. For one thing, several tech companies make more than Exxon. But he has a point. In the first quarter, Exxon generated $14.8 billion in free cash flow (FCF).

Besides that, with energy prices hitting a record high, Exxon announces a $30 billion share buyback plan through 2023. On top of this, Exxon is the largest holding in XLE stock. So, what benefits Exxon stock also benefits XLE stock. It’s no wonder investors and hedge funds are interested in the market.

According to information from Hedgefollow.com, the XLE ETF continues to see heavy institutional buying. In fact, buying activity in Q1 was the highest since Q2 2014.

XLE Stock Forecast: Do We See a Bounce in XLE Share Price?

The XLE stock selloff last week came due to a change in investor expectations. At first, investors braced for high inflation and low growth, also known as Stagflation.

But with the Fed raising interest rates, a new concern is developing. What if the Fed raises interest rates too quickly, sparking a recession? If this is the case, demand could fall drastically.

At the same time, until proven otherwise, the story remains the same. Energy is essential for the economy to function. With near-record energy prices, companies are generating massive amounts of free cash flow.

And consumers are still paying for it. According to new research from Yardeni Research, families in the U.S. are paying $5,000 a year on gas, up 78% from last year.

Is this the start of a new multi-year cycle? The big question will come down to how effectively the Fed will bring demand down.

As for XLE stock, I believe the ETF has more gas in the tank this year. With summer demand revving up, I wouldn’t be surprised to see the rally continue. And then, into hurricane season, we could also see a boost. That said, a recession could take the market lower.

In the long run, the direction many nations are heading is clear. To meet their climate goals, many leaders are investing in renewable energy. Although XLE stock holds some clean energy businesses, it mainly invests in oil and gas. If you wish to get ahead of the clean energy movement, check out these top renewable energy stocks for long-term growth.

[Shocking: Tesla's Worst Nightmare? (Coming True Right Now)]

Read more from Pete Johnson at InvestmentU.com

Top 4 Battery Stocks for Long Term Investors

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As the global EV market is set to grow four-fold, these battery stocks could get fully charged

  • These battery stocks could create shareholder value thanks to growth in the electric vehicle (EV) market.
  • FREYR Battery (FREY) — Agreements with large energy companies are likely to provide a growth roadway ahead.
  • Panasonic (PCRFY) — A new facility in Japan dedicated to the production of EV lithium-ion batteries should speed up production and increase revenue.
  • QuantumScape (QS) — A new research and development center in Kyoto will open a new market of customers in the Asia-Pacific region.
  • Romeo Power (RMO) — A recent agreement to provide lithium-ion batteries for a new line of low-speed EVs could mean enhanced revenue.

Battery stocks, our topic for today, have had a rough year so far. Fears of an economic downturn have added to the woes of an industry plagued by persistent supply chain issues.

Yet, in the long-run, the outlook remains bright for companies in the growing electric vehicle space. Recent research highlights, “Between 2020 and 2026, the size of the global electric vehicle market is expected to increase over four-fold to reach an estimated market size of some one trillion U.S. dollars by 2026.” Such an increase would mean a compound annual growth rate (CAGR) of over 23%.

High inflation and expected interest rate hikes have made investors wary of putting names in high-growth names that may not yet be profitable. Since the beginning of 2022, the S&P Kensho Electric Vehicles index has fallen 33.5%. During the same period, the Global X Lithium & Battery Tech ETF (NASDAQ:LIT) has dropped 15.4%.

Despite recent losses, many analysts concur that electric vehicles are the future of transportation. Therefore, manufacturers of key components for these cars are likely to soar as consumers switch to all-electric in the face of climate concerns as well as rising gas prices.

With that information, here are four battery stocks to buy in the coming months:

FREYR Battery (FREY)

The first stock on today’s list, FREYR Battery (NYSE:FREY), comes from Norway. It design low-cost lithium-ion batteries for a variety of applications. It is building a facility in Norway, slated to begin production of lithium-ion batteries later this year.

Earlier this month, this pre-revenue company reported first-quarter financials. Net loss was $34.9 million, compared to a net loss of $28 million the previous quarter. Loss per share was 30 cents, compared to 24 cents in Q4 FY21. Cash and equivalents totaled $524.6 million.

Recently, the company announced an offtake agreement with Powin, an Oregon energy-storage solutions provider. FREYR has agreed to supply Powin with 28.5 GWh of battery cells from 2024 to 2030. This transaction represents the latest in a series of offtake agreements with other companies, including Siemens Energy (OTCMKTS:SMNEY), AP Moeller – Maersk (OTCMKTS:AMKBY), and Honeywell International (NASDAQ:HON).

FREY stock is down 32.8% year-to-date. The 12-month median forecast stands at $18 a share. FREY Battery’s market capitalization is currently shy of $1 billion.

[First Look: Love investing in disruptive new companies? Your shot at the next Tesla!]

Panasonic (PCRFY)

Next up on our list is the consumer electronics giant Panasonic (OTCMKTS:PCRFY). The Japanese group is also the world’s third-largest producer of EV batteries. It has partnerships with Toyota Motor (NYSE:TM) and Tesla (NASDAQ:TSLA) to produce batteries for their EVs.

In early May, Panasonic released FY22 financials. Net sales were 7.39 trillion yen ($57.81 billion), up 100% year-over-year. Net profit attributable to shareholders also went up by 155%.

Investors paid close attention to the Energy segment, where sales increased by 27% to 764.4 billion yen from a year ago. This is due to increased sales of automotive batteries and power storage systems with significant growing demand for EVs globally as well as growing demand for Internet-of-Things (IoT) and social infrastructure use.

In fiscal 2023, management expects strong revenue, thanks to recovery in the automobile and aviation industries as well as growing demand for automotive batteries, according to a statement.

Panasonic recently announced construction plans for a new lithium-ion battery production facility in Japan. Production should begin in March of 2024.

Despite the positive outlook, PCRFY stock has lost about 19.6% since January. The current price supports a dividend yield is 2.21%. Shares are trading at 10.76 times forward earnings and 0.37 times trailing sales. Finally, the 12-month median forecast stands at $11.44.

QuantumScape (QS)

Our third battery stock pick is QuantumScape (NYSE:QS). This pre-revenue group focuses on solid-state EV batteries. It is working on developing a fast-charging, anode-less EV battery, capable of recharging up to 80% in 15 minutes.

In late April, QuantumScape issued Q1 metrics. GAAP net loss totaled $90.4 million, compared to $75 million the year before. Diluted loss per share was 21 cents. The year before, diluted loss per share was 20 cents.

Management recently announced a new office and research laboratory in Kyoto, Japan. This stepping stone into the Asia-Pacific market could help QuantumScape take advantage of the already thriving battery industry in Asia. Meanwhile, investors stateside are more than ready to see commercial production and revenues before too long.

In November 2021, QS stock hit a record high of $43.08. But the past six months, we have seen a different story and it is down 44.3% YTD. At present, the 12-month median forecast stands at $19. The market cap for QuantumScape is $5.21 billion.

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Romeo Power (RMO)

The final battery stock for today is Romeo Power (NYSE:RMO). It designs modular batteries for a variety of EV applications, ranging from delivery vans to long-haul trucks.

In early May, Romeo Power released Q1 financials. Revenue was $11.6 million, compared to $1.1 million the year before. Diluted loss per share was 60 cents.

Recently, the company announced it’s become the sole provider of lithium-ion batteries for an undisclosed manufacturer’s new line of next generation low-speed electric vehicles (LSEVs). According to Romeo, their batteries were chosen specifically to meet the high-reliability requirements of the customer.

Like its peers, RMO stock has suffered in 2022 and is down close to 74%, dragging the market cap down to $132.7 million. Shares are changing hands 6.95 times trailing sales. Finally, the 12-month median forecast stands at $1.80.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

[Exclusive: Andy Snyder – “The New EV Stock Set to Overtake Tesla”]

Read more from Tezcan Gecgil at InvestorPlace.com

Game-Changing EV Battery Swap Company Goes Public

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The leading battery swap company, Taiwan-based Gogoro (Nasdaq: GGR), is looking to expand its dominant market position. After going public a week ago, GGR stock is already down 40%.

But, what if I told you this could be a chance to get in on the ground floor in one of the biggest EV innovations since Tesla (Nasdaq: TSLA). Gogoro is already well on its way, selling its one-millionth battery in late February.

Best known for its high-performance electric scooters, the company is building an EV battery empire. In fact, its battery swap service is rapidly gaining momentum in Taiwan and the surrounding areas.

Is now the time to buy GGR stock before it gains analyst coverage? As you read further, you will learn why Gogoro leads the market. And then, at the end, we will decide if GGR stock is the right EV stock to add to your portfolio.

A SPAC You Will Want to Watch

SPACs have had their fair share of rises and falls these past few years. In 2020, it was mostly up. But since then, the IPOX Spac Index lost 16% in 2021 and is down another 8% so far this year. But things seem different with Gogoro. The company is reimagining the way people use and share energy.

With energy shortages becoming a concern, GGR stock offers a solution fit for the future. For one thing, Gogoro is using its innovative tech to make way for clean energy in populous cities.

With this in mind, Senior Research Analyst Ryan Citron from Guidehouse Insights says: Battery Swapping is emerging as a breakthrough technology that could greatly accelerate the adoption of light electric vehicles. Most important, battery swap networks can eliminate range anxiety, reduce upfront vehicle costs and address consumer concerns around slow EV charging.

This sounds like a game-changing technology worthy of landing on your watchlist.

[Breakthrough: Andy Snyder – “The New EV Stock Set to Overtake Tesla”]

“Powering 95% of All-Electric Two Wheelers”

Gogoro launched its battery swap service in 2015, and it’s already the go-to option for two-wheel vehicles in Taiwan. For example, Gogoro battery swap is the power behind 95% of all-electric two-wheelers in Taiwan.

Yes, that’s a whopping 95% in a city with over 23.8 million people. Not only that, but the company is expanding rapidly into other major territories such as China (1.4B residents), India (1.4B) and Indonesia (278M).

However, these nations have something else in common. They are also some of the most polluted countries worldwide in 2022.

  • No. 5 India
  • No. 6 Indonesia
  • No. 11 China

So, GGR stock has a massive opportunity to expand its product into the most populated nations in need of clean energy.

How a Battery Swap Service Works

You might be wondering how does a battery swap service work? Well, the idea is fairly simple.

  1. Like going to the gas station, customers pull up to one of over 2,300 GoStations.
  2. Then, upon arrival, users can swap their drained battery for a newly charged one.

The process is much quicker than the typical EV charging session. Even a Tesla supercharger takes 15 minutes, giving up to 200 miles.

Swapping batteries makes more sense. Rather than waiting for a half-charged battery, users can receive a fully charged one in seconds.

Scroll to the bottom to see if GGR stock is right for you.

Why GGR Stock Is Worth Watching

Besides going public just this past week, Gogoro is also located mainly in Taiwan at this point. So, if you don’t recognize the name yet, you’re not alone.

But what you may not know is that the company makes its tech available for use through its Powered by Gogoro Network (PBGN). The PNGN allows partners to use the battery tech to build their own two-wheel EVs, which can then use the swapping stations, promoting an EV ecosystem.

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Think about it:

If a company can build a cheaper EV model using Gogoro’s network, then why not?

For this reason, the firm is partnering with companies in major metro areas. For example:

  • Yadea & DCJ in China (Two of the world’s top electric scooter companies).
  • Hero MotoCorp in India (the world’s largest manufacturer of motorcycles and scooters).
  • Electrum in Indonesia (The world’s third largest two-wheel market).

Furthermore, PBGN powers products from Yamaha, Aeon Motor and PGO.

Gogoro Stock Flying Under the Radar?

If you are saying, okay, this sounds great and all, but why is GGR stock down over 40% already. For one thing, EV stocks are down significantly this week. Tesla is down 10%, Lucid Group (Nasdaq: LCID) is down 14% and NIO (NYSE: NIO) 15%.

Yet this doesn’t explain why Gogoro is falling further than the overall market. Looking at the company’s short price history, there was major selling on Monday, April 11.

A possible explanation for this is private market investors selling a part of their GGR shares as the company goes public. At the same time, investors are nervous about jumping back into growth stocks with popular ETFs like ARK Innovation (NYSE: ARKK) down over 50% in the past year.

And lastly, with investors focusing on other sectors such as energy and cyclical, is GGR stock overlooked? Or, it might be due to increasing competition. Both NIO and CATL (Tesla battery supplier) are starting their own battery swap services.

One Last Thought: Is GGR Stock the Right Investment for You?

Nobody can deny the limitless potential this tech can bring to the over $280B EV market. Not only that, but Gogoro is bringing clean energy to markets in desperate need of it.

Most important, Gogoro is rapidly growing its addressable market. Although two-wheel vehicles are not as popular in the west, they are huge in Asia and are expected to continue growing steadily. In fact, new research shows the two-wheel vehicle market is forecast to grow at an annual compound rate of 8.63%.

Gogoro’s battery swap service can help speed up the growing need for EVs worldwide. At the same time, while the firm expands its position, profits are likely a way out. Revenue dipped in 2021 due to less government support. But, as the firm gains momentum, they expect sales to accelerate significantly.

Think of Gogoro as a battery-as-a-service model. Though electric scooters are carrying the sales right now, the battery swap subscription is quickly accelerating. And on top of this, licensing fees are starting to pile up.

With this in mind, the company expects revenue to grow 52% year-over-year YOY in 2022, 85% in 2023 and another 85% in 2024. If this is the case, GGR stock is severely undervalued at these levels.

Then again, these are very early projections. We will see a clearer picture as the company progresses this year. GGR stock may be worth taking a bet for risk-takers looking to get in on the ground floor.

[Exclusive: Louis Navellier – The #1 Electric Vehicle (EV) Battery Stock of 2022]

Read more from Pete Johnson at InvestmentU.com

How to Profit from the Greening of the Blue Economy

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In Focus:

The “blue economy” is going green… and it’s time investors took notice.

But first, what is the blue economy?

The World Bank defines it as the “sustainable use of ocean resources for economic growth, improved livelihoods and jobs while preserving the health of ocean ecosystems.”

The European Commission, in contrast, defines it as “all economic activities related to oceans, seas and coasts. It covers a wide range of interlinked established and emerging sectors.”

The blue economy supports many sectors, including aquaculture, coastal tourism, fisheries, shipbuilding, port activities and maritime transportation.

One of the largest sectors in the blue economy has been oil and gas production. And sadly, waste disposal – both intentional and unintentional – has been part of the blue economy too (at least by the European Commission’s definition of it). So has overfishing.

But now the blue economy is going green in many different ways.

The Greening of the Blue

The blue economy is starting to seriously take note of its environmental impact.

For example, areas that were once home to oil and gas rigs are increasingly being used as sites of offshore wind farms.

Additionally, excess energy from offshore wind can generate green hydrogen. That will power the world’s newest ships.

[The Forever Battery: Making Gas Guzzlers Obsolete]

Desalinization plants, many powered by renewable energy, will provide fresh water to irrigate arid regions. And floating solar arrays can now be found in oceans and other waters. Tidal and wave energy production are also gearing up.

But let me explain what’s really driving the greening of the blue economy. Investors are increasingly focused on companies that apply environmental, social and governance (ESG) standards to their businesses.

Over the last few years, the momentum of companies adopting ESG standards has increased. As of the end of 2020, 88% of public companies and 67% of privately owned companies had adopted some form of ESG initiatives.

Several Opportunities to Consider

The number of sectors and companies in the blue economy is so vast that the best way for investors to play it is through one or more of the exchange-traded funds (ETFs) focused on it.

Today, there are no blue economy ETFs that trade on U.S. indexes. However, there are a number of European ETFs that investors should have access to.

The first one I like is the BNP Paribas ECPI Global ESG Blue Economy ETF (France: BLUE). This ETF tracks the performance of the Global ESG Blue Economy Index, which is composed of companies involved in the blue economy.

The second is the Lyxor World Water UCITS ETF (London: WATC), an ETF that tracks the World Water CW Total Return Index. It invests in the 30 largest companies in the world that get at least 40% of their revenues from water-related activities. These include companies involved in infrastructure, utilities and water treatment.

[New Battery Breakthrough: Could Revolutionize the $2 Trillion Automotive Industry]

The size of the ETF has doubled during the last three years. And as of June 2021, it was valued at 1.02 billion British pounds, or about $1.38 billion.

Some investors may be interested in individual companies with a focus on the blue economy. There are three worth considering that trade on U.S. exchanges.

The United Utilities Group PLC (OTC: UU.L) is focused on reducing water leakages by 15% and water pollution by 20%.

Xylem (NYSE: XYL) uses artificial intelligence to reduce pipe failure costs by 80%.

And finally, Essential Utilities (NYSE: WTRG) is a leader in water desalinization.

As the blue economy becomes greener, interest in these companies and others like them will only increase.

Investors might want to position their portfolios to take advantage of the changing blue economy sooner rather than later.

Good investing,

Dave

[Exclusive: Company Pioneering this New Battery could be the Investment of a Lifetime]

Read more from David Fessler at ProfitTrends.com