Wind Farm Stocks for Investors to Know About in 2021
Wind farm stocks are becoming crucial to the fabric of global energy. Which stocks should investors watch in 2021?
Nov. 1 2021, Published 2:52 p.m. ET
Wind farms are generating more than energy. They're generating revenue too. That's what makes stock market investors so interested in wind farm companies.
Like other ESG-oriented industries focused on environmental issues, wind farms are more startup than blue chip. For long-term growth, these publicly traded wind turbine stocks are worth watching in 2021 and beyond.
Wind turbine industry update
A wind farm backed by Amazon (NASDAQ:AMZN) started operations at the end of October 2021. Thanks to its high-profile investor, ScottishPower launched Beinn an Tuirc 3 near the Kintyre Peninsula without government support.
ScottishPower's wind farm already has peak demand. Amazon will purchase the farm's entire power output.
Currently, offshore wind is particularly lucrative since workers make more than their onshore counterparts. This gives offshore wind a labor advantage since it helps the field compete with fossil fuels for salary.
Offshore wind supplies 13 percent of U.K. electricity and 5.5 percent of Germany's power.
Amazon stock gives a glimpse of wind farm exposure
Due to its investments in ScottishPower's onshore wind farms, Amazon stock gives a limited amount of exposure to the industry.
The amount that Amazon invested into the company hasn't been disclosed, but a 50-megawatt onshore wind farm usually costs around $65 million in wind turbines alone based on a $1.3 million per megawatt estimate. Given Amazon's $1.68 trillion market cap, the wind farm exposure is limited, although the company has supported numerous other wind projects domestically and abroad.
Vestas Wind Systems A/S
Based in Denmark, Vestas Wind Systems (OTC:VWDRY) designs, manufacturers, installs, and services electricity-generating wind turbines. The company's global reach makes it a worthy contender for an international alternative energy pick.
VWDRY stock is up nearly 30 percent over the trailing 12-month period ending Nov. 1. The five-year outlook is even better at 191.9 percent in the green.
While not a direct wind farm, Vestas has an undeniable involvement in the industry and functions as the backbone for farms to operate at their best.
TPI Composites Inc.
Arizona-based TPI Composites Inc. (NASDAQ:TPIC) manufactures and services composite wind blades. This niche focus makes the company a vital member of the wind energy economy.
As of the latest earnings report, TPI beat the revenue expectations by 0.13 percent but missed the mark on the EPS entirely. The earnings for the third quarter of 2021 are expected Nov. 8 and analysts expect a similar trend with slimmed losses.
Whatever the case, TPIC shares are up about 150 percent from March 2020.
General Electric Co.
In addition to generating renewable energy like wind, General Electric Co. (NYSE:GE) stock offers exposure to aircraft engine production, water processing, household appliances, and industrial products.
According to the company's website, GE Renewable Energy has installed more than 49,000 units and generates wind electricity worldwide. The company's portfolio includes onshore and offshore turbines, development assistance, digital optimization, operations, and maintenance.
GE stock is up 27.2 percent YTD. The EPS for the third quarter of 2021 beat the expectations by 29.35 percent.
Wind farms—both onshore and offshore—are becoming crucial to the fabric of global energy. These stocks and more help investors support the shift.
