Renewable Stocks Are Lagging Despite Big Opportunity. Should You Buy In?

Renewable Stocks Are Lagging Despite Big Opportunity. Should You Buy In?

Our theme on Renewable Energy Stocks – which includes U. S.-based solar panel manufacturers, lithium miners, and hydrogen fuel cell producers – continues to underperform the broader market. The theme remains down by about 2% year-to-date, compared to the broader S&P 500 which is up by close to 19% over the same period. The theme is being weighed down by rising bond yields, which have hurt futuristic and growth stocks, and some delays in the passage of the U. S. infrastructure bill, which earmarks funds to accelerate the development of renewable energy solutions. Near-term issues aside, the theme is still worth a look for investors wanting to play the long-term transition to renewables. The Biden Administration is serious about doubling down on renewables to tackle climate change. The White House is targeting 80% renewable energy use by 2030 while looking at deriving all U. S. electricity from renewables by 2035. This would mark a massive transition in a fairly short time frame, as the U. S. presently derives just about 20% of its electricity from renewable sources. [1] This is likely to result in considerable regulatory incentives for renewables in the coming years. The estimated cost of a move toward