With all of the ongoing success of Tesla, Inc. (NASDAQ: TSLA), now would be a good time to take a look at other U.S. companies that are leveraging the growth of sustainable energy.
A couple of weeks ago, we took a look at Tesla and its place in the future of solar energy. As it turns out, the company has plenty of competitors in the growing solar market, and it won’t be long before these businesses go head to head for market share. Today, we will look at five companies that you may not have heard of, but could soon become household names in the sustainable energy community.
Although the first company we will discuss doesn’t have a product ready for market yet, its shares are currently up 459% year to date, compared to the S&P 500’s gain of 79% and the Nasdaq’s gain of 125%. That impressive run came after Luminous Power Inc. (OTCMKTS: LUMI) announced its entrance into the solar market back in June of this year, with the subsequent stock price rise that ensued.
The company has taken the unusual step of going public rather than seeking investor financing for its innovative solar products, which target specific use cases such as providing sustainable energy to remote locations and developing countries where electricity is not yet available. This is a common practice in the renewable energy sector, as companies can often times obtain better terms from banks and institutional investors if the companies are publically traded. Most people have probably never even heard of Luminous Power, let alone considered it a stock to buy, but its success in recent months could mark the beginning of a new era in the solar industry.
Another upstart company that has benefited immensely from the growing popularity of solar power is SunPower Corporation (NASDAQ: SPWR), the world’s largest solar cell manufacturer by market value. Not only has the stock risen 77% year to date, but it also recently surpassed Tesla for market cap, becoming the third largest company in the U.S. solar market. SunPower was also among the first companies to receive ISO 14001 certification for environmental management, meaning that it has put into place the necessary processes for keeping its production lines clean.
The company initially focused on manufacturing solar cells for use in photovoltaic panels, with the goal of converting the worldwide energy market from fossil fuels to clean, renewable energy. However, it has evolved its product line-up in the past year to include a variety of solar-related products, including solar wall systems, solar roof tiles, and stand-alone solar power plants-all of which are gaining popularity as more people turn to cleaner energy alternatives.
Ryder is another company that provides equipment for the sustainable energy market, this time focused on the water sector. The company creates automated water delivery systems for use in developing nations, where clean, safe drinking water is scarce. We have detailed its approach in the past, so we won’t rehash the explanation here. Suffice it to say that it uses equipment that combines solar power and desalination to create usable freshwater from saltwater, offering a cost-effective, long-term solution to the water sector.
Recurrent Technologies Inc. (NASDAQ: RECU) makes software-defined networking (SDN) gear for the data center, as well as various other products for the telecommunications industry. Its main product is FlowCo, which is a software-based virtual hub that enables data centre managers to create and control their own private networks without needing to be IT experts. As more and more people become dependent on the Internet for day-to-day activities, the demand for personal services like these will continue to grow.
EnerNOC, Inc. (NASDAQ: ENOC) provides energy management software and services to the commercial and industrial energy markets. The company was founded in 2002 and is based in Danbury, Connecticut, with additional locations in North America and Europe. Its software product, NOCX, gathers and analyzes energy usage data from across an organization’s infrastructure to provide proactive energy management.
The energy efficiency market was valued at around US$16.9 billion in 2020 and is expected to grow to over US$26.6 billion by 2025. As companies continue searching for ways to save money on their energy bills while still providing adequate power for their operations, efficiency software like NOCX could prove to be quite relevant.
Finally, let’s not forget about MicroGreen, Inc.’s (NASDAQ: MGRN) cutting-edge nanotechnology and data-driven marketing that aims to make sustainable living easier and more prevalent. The company is actually made up of three separate businesses–Nanochrom, EnergiGen, and Evoleum–but they all offer products and services connected to the circular economy and the production of green energy, which is a trend that will continue to grow as the world looks for sustainable ways to power their lives.
With the world shifting to a sustainable future, more and more people are looking for ways to live greener, more eco-friendly lives. This is also true of tech-savvy millennials, who are more likely to purchase green household goods and accessories–such as solar powered devices and eco-friendly cleaning products–and prefer to buy American-made products when possible. With each of these stocks poised to see significant growth in the future, investors may want to consider buying shares in one of these innovative companies rather than purchasing traditional energy stocks. With any luck, these companies will be able to overcome the current U.S. economic climate and continue growing even when the rest of the world is struggling to keep their heads above water.