8 Ways to Play Alternative Energy in 2019

From electric cars to nuclear and solar power, newsletter advisors are bullish on alternative energy plays for 2019. In the latest annual Top Picks survey from MoneyShow.com, eight investment experts chose stocks in the alternative energy space as their top investment ideas for the coming year. Roger Conrad, Conrad's Utility Investor Brookfield Renewable Partners LP is our top conservative idea for the coming year. The company offers a 7 percent yield, which is reliably growing 5 to 8 percent a year. Brookfield's stable growth is built on very solid, long-term foundations. The company's 17 gigawatts of power generating capacity and 8 GW development pipeline is almost entirely contracted to utilities and government entities. All of the facilities are among the least cost sources for their respective regions. All of it is hydro, wind or solar, meaning current and future environmental concerns are minimal. And while output can vary with weather conditions, facilities also have long track records for reliability. Second, Brookfield has a very strong financial position on its own with a BBB+ credit rating. And it has a very supportive general partner and 31 percent owner in A- rated Brookfield Asset Management . That backing has enabled Partners to make large acquisitions, while waiting on favorable capital markets to complete financing. Brookfield Renewable is priced in Canadian dollars, though dividends are paid in U.S. dollars. But improved oil prices should help currency become an upside driver in 2019, in addition to the high dividend and reliable dividend growth. Note the company now sends a K-1 at tax time, a possible inconvenience to taxable accounts more than offset by tax advantages. Doug Gerlach, SmallCap Informer Alternative energy production remains a growing industry both in the U.S. and worldwide. One potential investment candidate in the wind power segment is TPI Composites . The company is the largest U.S.-based independent manufacturer of composite wind blades. The company operates in the United States, Asia, Mexico, Europe, the Middle East, and Africa, with facilities strategically located to serve large and growing wind markets in a cost-effective manner. It also provides composite solutions for the transportation industry, including the manufacture of bodies for electric vehicles and airplanes. Consultant firm Bloomberg New Energy Finance estimates that $10 trillion will be invested in new power generation capacity through 2040 and of this, 72% will be renewables and $3.3 trillion will be wind. TPI Composites claims 13% of the global market share of wind blade production in this expanding market. Its global presence may help the company as wind generation is growing faster in emerging markets around the world than in mature markets. There are huge barriers to entering the wind blade production market for other companies, as blades are typically 60-70 meters long, larger than the wing span of a 787, with tolerances measured in millimeters. The firm owns patents and technology that are difficult to replicate. Based on expected 2019 EPS of $1.30 (the midpoint of guidance), the stock is selling at a forward P/E of around 19, which could well turn out to be a bargain valuation with projected annual total returns through 2022 of 24.5%. Tap here to read MoneyShow's Top 100 Stock Picks for 2019! David Coleman, Argus Research First Solar manufactures thin-film semiconductor photovoltaic (PV) cells and modules that convert sunlight into electricity. By using a very thin coating of semiconductor material over a glass sheet, the company is able to produce PV modules at a much lower cost than firms using traditional wafer technology. The current solar industry environment is attractive given declining manufacturing costs, the increased efficiency of PV cells, and the recent pullback in industry share prices. Solar photovoltaic (PV), a solid-state technology, is emerging as the most viable of the alternative energy solutions, overcoming the limitations presented by mechanical-dependent alternatives such as wind power and solar. As companies continue to invest in R&D and become more efficient, we think that solar will become more competitive with traditional power generation. The company has an industry-leading financial profile with a solid balance sheet. Gerardo Del Real, Junior Mining Monthly Uranium is coming out of a brutal bear market and anyone whose been involved in the space for any amount of time will tell you that uranium bear markets lead to violent bull markets. I believe we're in the first inning of what will result in a historic uranium bull market. One of the best ways to gain exposure to a better uranium market is by finding companies that can produce at a low-cost, are cashed up and have a track record of success. Energy Fuels provides three distinct advantages: 1) It's the #1 uranium producer in the United States; 2) it's the only vanadium producer in the country; and 3) its assets are low-cost and scaleable. Uranium is poised to benefit from the electrification of everything. Global electricity demand is forecast to grow approximately 50% over the next two decades and I believe that to be a conservative estimate. Japan has nearly 10% of the world's reactors but restarts have been slow and most are still not operating. China -- the commodity elephant in the room -- only generates 4% of its power from nuclear but has a target of 20% non-fossil fuel by 2030. That's a lot of new reactors and pent-up demand will underpin prices for at least a decade. Expect a big year from uranium and expect Energy Fuels to deliver big gains to shareholders. Todd Shaver, Bull Market Report Tesla is disrupting the world of renewable energy and electric powered vehicles. That's a noble cause and hopefully it will save the world from global warming. These are some of the core values that drive the vision. But there is so much more about this company and its future. Just like Steve Jobs, Tesla creates beautiful products using revolutionary technology that make an instant connection with their audience. There is a unique combination of talents in the mindset of Elon Musk. On one hand, he is a global thinker on the scale of great visionaries like Richard Branson. On the other, his products are created with extreme attention to the most minuscule detail in design and engineering. That's pure Steve Jobs. We have driven a Tesla, and it is the best car we have ever seen. And most people that own one feel the same way. Musk has calmed down and has mostly shut down his Twitter account, and added Larry Ellison to the board of directors. A new age has arisen with this company and we wouldn't be surprised to see a 4-digit stock price in the next few years. Tony Daltorio, Growth Stock Confidential The Chinese are finally serious about curbing the rampant pollution in their country. That has led to China markedly cutting back on the use of coal for both power and heating purposes. As a substitute for coal, China is placing a major emphasis on natural gas. China has overtaken South Korea to become the world's second-biggest importer of LNG and it is expected to surpass even Japan by the end of the next decade. In other words, this change in China's energy mix is a long-term change. Despite the trade war, this bodes well for the number one exporter of LNG from the U.S. -- Cheniere Energy . It had the first U.S. LNG export terminal, which has been in operation since early 2016. Its first mover advantage in China is evident with the signing of an $11 billion memorandum of understanding for long-term LNG sales with China National Petroleum. The contract runs through 2043. This is the first ever long-term contract to supply China with U.S. liquified natural gas. This will be a long, profitable relationship between Cheniere and China. In my view, Cheniere is a buy on any weakness from trade war worries. Vivian Lewis, Global Investing Canada has long been more green-minded than the U.S. Algonquin Power & Utilities is a play on renewables; it is our top pick for 2019 for those seeking a solid income earner. The lure for me is its Liberty Power non-regulated renewables line with a power generation capacity of 957 megaWatts. This represents about 20% of total capacity. Eventually there will be $7.5 billion of new investments in 2019-2023 so $2.2 billion will be for renewables. Its plans don't stop at North America. The company is growing its renewables business also in Latin America, for example with the ATN3 transmission system being built in Chile and Peru, and other renewable and water projects still to come. Through partnerships, Algonquin gets to manage sustainable global water and energy businesses; current projects include desalination plants in Ghana and China and a solar-thermal power plant in Israel. These moves make Algonquin a North American leader in renewable power from hydro, thermal, wind, and solar, water distribution, and wastewater collection. Algonquin has $9 billion (US) of total assets in natural gas, water, power generation, electricity transmission and utility distribution. There is more in the pipeline. It yields 5% and the company expects CAGR to rise 10% over the next five years. Here's a chance to earn green from green! Bill Selesky, Argus Research Albemarle Corp. focuses on the production of lithium compounds for use in lithium batteries. The current environment is extremely positive, based on strong global demand for lithium-ion batteries used in consumer electronics and automobiles. Lithium demand continues to exceed expectations and is expected to remain strong for the foreseeable future. Lithium producers are seeking to acquire additional mines in anticipation of increasing demand. Pricing remains strong based on solid demand trends and weak capacity growth. On size and scale, the company operates 31 facilities worldwide. Some 80% of projected 2021 demand has already been secured by customer contracts. Albemarle's long-term goal is to ramp up lithium production by expanding existing mines and pursuing joint ventures and acquisitions. This should lead to substantially higher-than-average profit growth. The firm focuses on shareholder returns through both dividend increases and stock buybacks. The company raised its dividend by 5% in February 2018 and has increased its dividend for 24 straight years.

8 Ways to Play Alternative Energy in 2019

From electric cars to nuclear and solar power, experts pick their top investment ideas in the space for the year.

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