Barron’s top energy picks include Shell, Constellation, and First Solar.

By Oliver Townsend May 19, 2024
Shell, Constellation, First Solar among Barron's roundtable energy picks.jpegOrginal image from:

Investing in energy-related stocks can be a lucrative opportunity for investors looking to capitalize on the growing demand for sustainable and clean energy sources. A roundtable of energy experts convened by Barron’s has identified 12 energy-related stocks that are well-positioned to thrive in the current market landscape. These picks span a range of companies involved in renewable energy, biofuels, fossil fuels, and clean technology, offering investors a diverse portfolio of options to consider.

Energy Picks from Barron’s Roundtable

Stephen Byrd, the global head of sustainability and clean-tech research at Morgan Stanley, is bullish on AES, Vistra, Constellation Energy, Bloom Energy, and Sunrun. Byrd highlights the potential of clean-technology products in the face of rising utility costs, pointing to the high barriers to entry for companies like Sunrun and Bloom Energy. These companies offer innovative solutions for residential solar energy and fuel-to-electricity conversion, making them attractive investments in the energy sector.

Lucas White, a portfolio manager at GMO, recommends Sunrun, First Solar, SolarEdge Technologies, Darling Ingredients, and Neste. White emphasizes the scale and long-term potential of Sunrun, along with the quality and value orientation of companies like Darling Ingredients and Neste in the biofuels space. These companies are trading at attractive valuations relative to their profitability, making them compelling investment opportunities for investors seeking exposure to renewable energy and sustainable practices.

Stan Majcher, an energy-focused portfolio manager at Hotchkis & Wiley, favors APA, Kosmos Energy, and Shell. Majcher highlights the appeal of smaller companies with strong free-cash-flow yields, such as APA and Kosmos, which offer valuable assets at discounted prices. Additionally, Majcher sees Shell as a promising investment due to its strategic positioning in the energy market and potential for future growth.

Investing Strategies for Energy Stocks

For investors interested in the energy sector, the roundtable experts recommend a mix of traditional fossil fuel companies and clean energy plays. By diversifying their energy holdings, investors can capitalize on the growth opportunities presented by both sectors. While clean energy stocks offer long-term sustainability and innovation, traditional fossil fuel companies provide stability and market-cap upside in the current economic environment.

Overall, the energy picks from Barron’s roundtable offer investors a comprehensive selection of stocks poised to benefit from the evolving energy landscape. Whether focusing on renewables, biofuels, or traditional energy sources, these companies represent attractive investment opportunities for those looking to align their portfolios with the transition towards sustainable and clean energy solutions.

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