Goldman picks 9 renewable energy stocks set to rebound after falling up to 40%

Goldman picks 9 renewable energy stocks set to rebound after falling up to 40%

An aerial view of wind turbines in western Germany on May 8, 2020.

Goldman Sachs believes it is time for investors to rotate back into renewable energy majors, describing current price levels as a "compelling entry point."

The investment bank said shares in the sector had dropped by an average of roughly 20% since an early January-peak, with some falling as much as 40%.

This move lower among Green Energy Majors (or GEMs) in recent weeks was most likely triggered by higher inflation expectations, anxiety over the prospect of rising interest rates and a rotation out of capital intensive, secular growth industries, the analysts said in a note published Sunday.

Nonetheless, Goldman analysts reaffirmed their confidence in the potential for GEMs and argued there was growing evidence to support their investment view.

Here's a list of buy-rated stocks they expect to outperform: