FCEL - 7 Best Green Penny Stocks to Buy Now

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The world is transitioning from a carbon-based energy economy to one more reliant upon green sources of energy. The two biggest sources of renewable energy, wind and solar power, currently account for about 5% of the world’s energy. In order to meet net zero carbon emissions targets, that number will need to be closer to 60% by 2050, according to JPMorgan strategists. Many of the companies that will lead this transition are small — for now anyway — which is why investors are always on the search for the best green penny stocks to buy. 

While the profit potential is huge, keep in mind that these names are only for risk-tolerant investors. For those who have capital they are willing to lose betting on a chance at big returns, here are the best green penny stocks to buy now.

OIGOrbital Infrastructure Group$0.46WATTEnergous$1.04FCELFuelCell Energy$3.50AQMSAqua Metals$0.80BWENBroadwind$2.83SUNWSunworks$2.81VWDRYVestas Wind Systems$6.18

Best Green Penny Stocks: Orbital Infrastructure Group (OIG)

Orbital Infrastructure Group (NASDAQ:OIG) is a diversified stock in the telecommunications and utility services sector that includes a renewable services business. The firm provides infrastructure solutions for electric utilities, while its telecoms business focuses on enterprise solutions. Its renewable segment provides utility-scale solar construction services.

This stock should interest investors seeking solar utility opportunities at penny-stock prices. Based on OIG stock’s sole rating, the opportunity is quite attractive. That one analyst following it rates it a “buy” with a $4 price target, according to TipRanks. That is 770% above the current share price.

The company reported record quarterly revenue of $93.9 million in Q2, up 717% from a year earlier. And it reported a gross profit of $9.8 million compared with a loss of $2.9 million in the year-ago quarter. Net losses, however, are increasing, which will be important for investors to watch in the current economic environment as interest rates rise. 

Energous (WATT)

Energous (NASDAQ:WATT) develops RF-based charging for wireless power networks. The firm is small, with a market cap of just over $80 million. Analysts expect it to generate full-year revenue of $1.35 million.

Despite posting a Q2 net loss of $7 million, Energous ended the quarter with $35.7 million in cash and no debt. I’d also like to point out that the company has met analysts’ bottom-line expectations in the past two quarters. This type of predictability is a virtue in the volatile world of penny stocks. 

Just two analysts cover the stock, but both rate it a “buy,” according to The Wall Street Journal. Their average target price of $2.45 implies upside of more than 135%. 

Best Green Penny Stocks: FuelCell Energy (FCEL)

FuelCell Energy (NASDAQ:FCEL) sells fuel cell stations that generate electric power. Its products complement sources of intermittent energy production, including solar and wind turbines. In other words, FuelCell Energy helps store and distribute clean energy where combustion-based power generation is unsuitable. 

The company is on a clear growth trajectory, with revenue in its fiscal third quarter up 61% year over year to $43.1 million. Full-year revenue is expected to increase 92.5% to $134 million.

FuelCell’s loss from operations increased during its most recently reported quarter, rising to $28 million from a loss of $10.6 million a year ago. For the full year, analysts predict the company will lose 29 cents per share, much bigger than the 3-cent loss in the prior fiscal year. That’s clearly trending in the wrong direction.

However, as of July 31, the company had a backlog of $1.28 billion. As supply chain issues subside, FuelCell should be able to satisfy that backlog of demand, leading to stronger operations and shrinking losses. 

Aqua Metals (AQMS)

Aqua Metals (NASDAQ:AQMS) is a very early-stage opportunity in the metals recycling industry with 68 patents with a further 49 pending.

First, the bad news. Aqua Metals is essentially a pre-revenue company, recording just $4,000 in product sales through the first six months of 2022, all of which occurred in Q2. It’s also a pre-profit company, but its losses are shrinking. For the second quarter, Aqua Metals reported a net loss of $3.17 million, which was much better than the $8.02 million loss in the year-ago quarter. 

At the end of Q2, Aqua Metals had $24.1 million in assets, $6.4 million of which was cash. Therefore, you could argue the company has multiple quarters before it really has to begin worrying. But, all in all, the fundamental situation isn’t stellar. 

The good news is that the company is developing technology to fill an emergent need: lithium-ion battery recycling. Aqua Metal is tailoring its refining process so it can economically meet the demand for battery recycling. With the explosion of electric vehicles, a Greenpeace report estimates “12.85 million tons of EV lithium-ion batteries will go offline between 2021 and 2030. At the same time, 10.35 million tons of lithium, cobalt, nickel, and manganese will be mined for new batteries.”

Mining alone cannot meet the replacement demands for critical metals in these batteries. Firms that can capture those metals from dead batteries will fill important supply chain gaps with geopolitical implications. Thus, a small outlay toward AQMS stock now could pay handsomely in the future. 

Best Green Penny Stocks: Broadwind (BWEN)

Broadwind (NASDAQ:BWEN) is a diversified energy firm that provides solutions and products to the traditional and clean tech energy industries. The company fabricates wind towers, as well as gearboxes and systems used in offshore oil rigs and fracking operations and the production of wind energy. 

For the second quarter, revenue increased 8% year over year to $50 million while the company reported a net loss of $2.7 million compared with net income of $10.3 million a year earlier. In the press release accompanying earnings, the company noted what it describes as a “transient pause in domestic wind installation activity” due to “elevated raw materials prices, supply chain delays and policy uncertainty.” Indeed, just $2 million of its $26 million in orders for the quarter were related to wind power.  

So, why is Broadwind one of the best green energy stocks to buy?

Well, the company was awarded $11 million worth of wind tower orders in August and an additional $38 million in September. Plus, the recently passed Inflation Reduction Act of 2022 extends federal tax credits for wind energy projects, which should provide a boost for the industry.

Sunworks (SUNW)

Sunworks (NASDAQ:SUNW) provides photovoltaic and battery-based power and storage systems for multiple markets, including residential, agricultural, commercial, industrial and public works. The company is working through issues but appears to be headed in the right direction.

Revenue increased 13.4% year over year in the second quarter to $36.4 million. However, its net loss quadrupled in the same period, reaching $7.6 million. 

Yet, demand for its products is strong with its backlog increasing 51% during the second quarter to $96.9 million. And with the Inflation Reduction Act’s clean energy tax credits expected to double the deployment of solar and wind energy by 2030 in the United States, demand should remain robust.

A turnaround in Sunworks is predicated on improving supply chain conditions, but once this happens, SUNW stock could rise quickly.

Best Green Penny Stocks: Vestas Wind Systems (VWDRY)

Vestas Wind Systems (OTCMKTS:VWDRY) is a Danish company that manufactures, installs and services wind turbines. Like today’s other stocks, it is very speculative and an investment in it will require a good deal of optimism and some luck. 

Revenue fell 7% year over year in the second quarter to $3.3 billion EUR. And it reported a $119 million EUR loss compared with a profit in the prior-year period. 

As is the case with several other names on this list, the opportunity is in the company’s backlog. It ended the quarter with a backlog of $18.9 billion EUR. And while the company installs wind turbines around the globe, it’s well-positioned in its home market. Half f Denmark’s electricity comes from wind and solar power.

Analysts are split on VWDRY stock with seven “buy” ratings, 11 “holds” and eight “sells.” However, their average price target is $48.38, signaling massive upside potential in the shares. 

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Read More:?Penny Stocks — How to Profit Without Getting Scammed 

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.

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