7 Best Green Penny Stocks to Buy Now
Even the best green penny stocks are speculative investments. In fact, all penny stocks are in the latter category. However, the appeal of their speculative nature is their higher potential return.
On the other hand, of course, investors can lose a great deal of their money by betting on penny stocks. So anyone considering purchasing penny stocks, green or otherwise, should take that into account. That said, there are reasons to believe that the best green penny stocks have better chances of generating profits than other types of penny stocks.
For one, research suggests that the growth of renewable energy is continuing to accelerate. During the first eight months of 2021 , U.S. solar and wind installation capacity increased by 13.8 gigawatts, a 21% surge over the same period a year earlier. Meanwhile, solar photovoltaic (PV) system prices have declined by 85% over the last decade. That’s making green energy much more attractive as lower prices make projects more profitable.
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Orbital Infrastructure Group | 29.6 cents | |
SPI Energy | $1.41 | |
NexGen Energy | $4.13 | |
Fuel Tech | $1.18 | |
VivoPower | 49.67 cents | |
Polar Power | $2.18 | |
Uranium Energy | $3.85 |
SPI Energy (SPI)
Source: Andreas Prott / Shutterstock
SPI Energy (NASDAQ:SPI) and its stock are 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 who cover it. Their average price target on the stock is $7, significantly higher than its Friday closing price of $1.41.
More importantly, SPI’s most recent financial results indicate that its fundamentals are improving. In Q2, its sales climbed 6.1% year-over-year to $48.6 million. That lead to a net loss of $2.2 million in the quarter, a significant improvement over the $6.5 million loss that it posted in Q2 of 2021.
SPI Energy has a solar business, an energy storage business, and an EV business. In Q2, SPI spun off Phoenix Motor (NASDAQ:PEV) through an IPO. It maintains an 80% stake in Phoenix Motor, and the deal netted the firm $15.75 million. In Q2, Phoenix Motor began delivering forklifts.
In short, SPI is making a name in the alternative energy space and seems to be fundamentally sound.
NexGen Energy (NXE)
Source: John Carnemolla / Shutterstock.com
NexGen Energy (NYSE:NXE) is a Vancouver-based uranium mining firm. Uranium is used to fuel nuclear power plants. Although nuclear power is controversial, it is clear that many more nuclear power plants will be built in the coming decades.
In fact, a September report by the International Atomic Energy Agency (IAEA) anticipates that nuclear power capacity will double by 2050. The IAEA raised its estimate by 10% compared with its previous report. That’s very good news for firms like NexGen Energy that will supply the uranium used by nuclear plants.
Another important point about Nexgen Energy is that it’s relatively stable for a penny stock, as it has been rising predictably over the past three years. And all nine analysts who cover it have “overweight” or “buy” ratings on it’. Their average price target suggests that the shares can climb roughly 50%.
NexGen Energy posted a Q2 net profit of 17.585 million Canadian dollars, versus a net loss of 19.8 million Canadian dollars during the same period a year earlier. The company is developing a portfolio of uranium mines in Canada and looks relatively stable compared to many other penny stocks.
Fuel Tech (FTEK)
Source: Roman Zaiets/ShutterStock.com
Fuel Tech (NASDAQ:FTEK) is a small, high-tech firm focused on air pollution control. The company has two primary businesses. First, it sells burners that emit low levels of nitrogen oxide, upgrades burners, and markets reagents that reduce nitrogen oxide emissions. The firm has installed more than 1,000 units globally in plants that burn coal, oil, natural gas, municipal waste, biomass, and other fuels.
Secondly, Fuel Tech produces custom-designed chemicals that increase the efficiency, reliability, and fuel flexibility of combustion units.
Fuel Tech is interesting for a few reasons. For one, more than 25% of its 70 employees hold advanced degrees. So it is clear that the company is dedicated to developing evidenced-based solutions that reduce nitrogen oxide production and other emissions.
Further, Fuel Tech continues to grow its revenue, indicating that the demand for its products isn’t slowing. Specifically, its revenue increased to $6.27 million in Q2 from $5.22 million during the same period a year earlier. Meanwhile, its net losses shrank to $356,000 last quarter from $778,000 during the same period a year earlier.
VivoPower International (VVPR)
Source: Shutterstock
The lone Wall Street analyst who follows VivoPower International’s (NASDAQ:VVPR) has a very intriguing forecast regarding VVPR stock. That’s because, although VVPR stock closed at around 50 cents on Friday, that analyst’s price target on the stock is $5. In other words, the analyst thinks that VVPR can soar about nine times.
But, as you may have guessed, VVPR stock carries a significant amount of risk. It’s clear that VivoPower International is at a turning point: It will either rapidly improve its business or it could find itself delisted from the Nasdaq which has a rule that requires share prices on its exchange to trade above $1 .
In order to turn itself around, VivoPower is going to sell more than 4.2 million additional shares of its stock.
The company will use proceeds from that sale to improve its businesses which include EVs, solar power systems and batteries. In my view, the company’s Tembo EVs are appealing, but its losses also rose year-over-year in its most recent reported quarter as its revenues declined slightly.
Polar Power (POLA)
Like many other firms, Polar Power (NASDAQ:POLA), which develops systems used in renewable energy products, has had to deal with supply chain issues that have negatively affected its business. In its Q2 earnings press release, the company noted that its supply chain issues and labor shortages had negatively affected its business, causing its sales to sink 12% year-over-year.
But Polar Power reported $4.2 million of revenue in Q2, down fro9m $4.8 million during the same period a year prior. That isn’t exactly a massive difference, all things considered.
And there is still plenty to like about its Q2 earnings report at the same time. Specifically, Polar Power’s sales backlog came in at $14 million at the end of Q2. and nearly $10 million of that backlog was accumulated in Q2. Thus, it is entirely conceivable that once the firm’s supply chain issues are resolved, Polar Power’s sales could rise rapidly.
And the stock could eventually deliver massive gains, as the single analyst who covers the name has a “buy” rating on the shares and a price target on it of $25. POLA stock closed at $2.18 on Friday.
Orbital Infrastructure Group (OIG)
Source: snvv18870020330 / Shutterstock.com
Orbital Infrastructure Group (NASDAQ:OIG) is a Houston-based firm that is more diversified than others on this list. The business is separated into three reporting segments; electric power, telecommunications, and renewables. Its shares closed at 29.6 cents on Friday, but the two analysts who cover it have an average price target on the name of $2.50.
The company’s diversified business structure makes Orbital Infrastructure Group interesting, and its fundamentals make OIG stock a buy. In Q2, it reported record revenues of $93.9 million, versus $70.3 million in the previous quarter and just $11.5 million during the same quarter a year earlier.
The other positive news is that the firm raised its full-year revenue guidance to a range between $405 million and $450 million. Moreover, its backlog of nearly $500 million ensures that the company should stay busy. That’s especially true because $291 million of the backlog is expected to be filled in the coming 12 months.
Uranium Energy Corp. (UEC)
Source: RHJPhtotos / Shutterstock
The market really likes Uranium Energy Corp. (NYSEAMERICAN:UEC) and its stock. The company itself has become the largest, diversified North American-focused uranium company in 2022, according to its recently issued annual report.
I say that the market really likes Uranium Energy and its stock because its P/E ratio is above 200. That P/E ratio is higher than roughly 97% of the other firms in its sector. So it’s either overvalued or its business is about to take off. In any case, the market appears to be fully behind it.
Part of the reason so many investors are intrigued by Uranium Energy is that the company isn’t simply exploring promising mines and projects. Rather, it also boasts what it refers to as a physical portfolio of 5.5 million pounds of stored uranium.
The company reported $22.95 million of revenue and a $7.2 million gross profit for its fiscal year that ended on July 31. It’s debt free, has $173.3 million of liquidity, and a pretty large amount of uranium. It is a safe energy-production play.
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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