Alternative Energy Stocks To Watch
Alternative energy stocks is a broad term that describes stocks issued by companies who make their goal to research and develop strategies to produce greener, more sustainable energy that is not dependent on fossil energy sources that are being continuously depleted and have had a devastating effect on global warming situation.
The major problem with renewable energy stocks is greater expenses associated with operation and unknown long term financial outcomes for majority of green-oriented companies. Investing in alternative energy stocks could be promising but in the meantime very tricky as to finding exactly which types of renewable energy stocks to bet on.
Should it be solar energy stocks of companies that utilize sun’s abundant rays to heat water for your shower, pools, power small electric appliances, cook food and many more? In the light of the recent economic downturn solar energy stocks have not been doing so well in the last couple of years. In addition, there’s a lot of competition among a multitude of solar panel companies that is sure to drive solar energy stocks prices down.
Similarly to solar energy stock market, wind energy stocks have suffered great losses during harsh economic times. Slowly but surely investors start to look into investing in wind energy stocks again due to ongoing Federal Tax Credits for installation of Renewable Energy sources in residential homes and businesses and also due to massively growing Chinese investments into this type of alternative energy stocks.
Geothermal power stocks are mostly represented by a few larger companies dominating the market of geothermal development like Ormat Technologies Inc. and Nevada Geothermal Power Inc. The majority of geothermal plants are scattered across Nevada, Oregon, Idaho and California. Both of these companies’ geothermal energy stocks could become a great investment for the future.
It’s highly unlikely that alternative energy stocks could produce any short term gains due to overall reduction in conventional energy uses because of the economy downturn. This situation usually puts a lot of government alternative energy incentive programs on hold and results in less demand from consumers to switch to alternative energy usage. Let’s hope that the future of alternative energy stocks is bright and starts bringing in real profits for their faithful investors.