Can I invest in Vegan Stocks and Clean Energy Stocks (Green Energy Stocks)?

by | May 29, 2021

Vegan Stocks   

It seems that the whole world is going vegan at the moment, or at least part of it. There are many global companies already selling vegan and vegan-friendly products. Even before the term “vegan” began to grow in popularity, this market was already quite large and growing. In 2019, the global vegetarian and vegan market was worth more than £50 billion, although the vegan sector is currently still a small fraction of the international meat product market, which is currently worth around £1 trillion each year. However, it does seem that the awareness of vegan products is continuing to rise.

With that in mind, we are going to take a look at some of the best vegan companies to invest in for 2021:

Tyson Foods (TSN)- Tyson Foods purchased 5% of Beyond Meat in 2016 and it is regularly upping its stake in plant based stocks through various investment rounds. This company is still a competitor to Beyond Meat, with meatless chicken nuggets being a primary vegan product.

Beyond Meat (BYND)- Beyond Meat is a popular seller of vegan meat products and it’s well positioned in the current vegan revolution. It’s meatless sausages, burgers, and other products are used by major fast-food chains, including Carl’s Jr, Burger King, Del Taco and Blaze Pizza around the world. With its strong brand equity, widespread distribution, robust production capabilities and first-mover’s advantage, the company should continue to grow making this one of the best vegan companies to invest in.

Maple Leaf Foods (MLFNF)- Maple Leaf Foods is the leading manufacturer of vegan frozen foods based in Canada. The company started a major campaign in the plant-based market in 2019, with a subdivision called Greenleaf.

The Plant Protein Group, a subsidiary of Maple Lead, reported 27% sales growth in 2019. Last year, sales of Plant Protein Group grew by more than 30% making this among the leading eco-friendly stocks to watch in 2021.

The Very Good Food Company (VRYYF)- it’s an alternative to the Beyond Meat, a £500 million Canadian company that offers vegan sausage and burgers. Many customers view these products as among the best in the market with excellent texture and flavour. VRYYF is increasingly seen as a leading supplier of high-quality plant-based meat.

Clean Energy Stocks

Even today in our eco-friendly, green society and renewable energy technologies remain disruptive in the energy sector due to the increase use of both solar and wind energy. There are two main factors at work here, efficiency and value. Efficiency is going up as it’s getting cheaper to build solar and wind power plants, which means that the final consumer product is less expensive to purchase. This has led to increased interest in clean energy stocks, also called green energy stocks.

With that in mind, if you are considering investing in renewable stocks, here are some particularly good reasons to do so this year:

Bigger Market Share- the clean energy sector is grabbing more of a market share within the energy sector. Lower initial costs are making clean energy more attractive, compared to conventional fossil fuel and nuclear power generation. The increased popularity of clean energy is contributed to by many fast-growing companies, including Atlantica Sustainable Infrastructure (AY), Brookfield Renewable Partners (BEP) and NextEra Energy Partners (NEP). These are some of the top clean energy stocks to invest in today.

Improving Technology- there’s always on-going development of clean energy technology, resulting in better power efficiency and lower costs. Bigger and more efficient wind turbines allow investors to get more energy for every pound of their investment. Cheaper and more durable batteries are now available for commercial and home use, which is useful at night or when wind speed is low. SunPower (SPWR) and Sunrun (RUN) are focusing on the development and manufacturing of solar-based products. SolarEdge (SEDG) and Enphase Energy (ENPH) are other fast-growing companies that produce solar-related equipment and supplies.

Corporates Tendency Towards Renewable Energy- investors are excited to see more wind turbines and solar panels being installed at the corporate level,  to contribute to providing power for manufacturing facilities and office buildings. Newly installed solar power for the corporate sector in the UK is around 1,100MW each year, from 2017 to 2019. Despite the pandemic, 1,286MW of solar power was installed in 2020 for corporations. Due to the increased efficiency and reduced costs of installations, corporations view solar power technology and equipment as a more viable solution for medium- and long-term uses. As of today, corporate uses of wind power have reached 17.000MW.

Favourable Government Policies- in many countries, solar and wind energy is taking advantage of favourable policies, especially as investment tax credits. Incentives will inevitably increase, which will drive more development and demand. General Electric (GE) is a good clean energy stock to invest in, especially if you are interested in wind power. Last year, GE acquired a revenue of more than £15 billion from clean energy alone. With increased support from governments, the clean energy industry sector will continue to become more appealing in 2021 and beyond.

How Can RWB Wealth Help

RWB Wealth have several investment portfolios which concentrate on “Green Investments”, formally known as ESG funds. These portfolios include; vegan companies, companies concentrating on being socially responsible, companies with 0 or negative carbon footprints, and it even looks at the renewable energy market. It is important to diversify your portfolio to reduce risk, as the saying goes; you don’t put all your eggs in one basket. Additionally, the investments are managed and adjusted as time goes on. Having the investment managed can help protect gains and help reduce losses.

Can I Invest In Green Energy Stocks? The Benefits Of Investing In Green Energy Stocks

At the moment, the future of the green energy sector has never looked more promising. There are many companies in this sector that are enjoying significant increases in value and many more still on the rise. By investing in today’s leading green energy stocks, investors can add more sustainability to their portfolios and also expect decent future profits.

Let’s take a look at some of the benefits of investing in green energy stocks:

More Attractive Returns- returns from renewable stocks are growing and becoming increasingly more attractive every year. Government incentives are often the main driver in the green energy sector and a good policy environment is often enough to justify an investment. Atlantica Sustainable Infrastructure (AY) offers excellent returns for investors. The company is operating in North and South America as a provider of renewable energy solutions, including the construction of a 20MW power plant in Columbia.

Resilience To Recession- green energy stocks have proven to be resilient in this past highly turbulent year. While gas and oil corporates struggled with low demand, many green energy stocks rose steadily towards the end of 2020. This year will be another great time for clean energy stocks. Ormat Technologies (ORA) received $15 million grant from the US Department of Energy in 2020. The fund will be used for research and development in the geothermal sector. Plug Power Inc (PLUG) is another green energy company that performed impressively during the difficult economy. Major oil companies from Europe including Equinor, BP, Royal Dutch Shell, and Total have also announced aggressive goals in the green energy sector as a way to improve their resilience when facing difficult economic situations.

Room For Growth- with investment costs coming down, the green energy sector has significant room for growth. Globally, solar energy is contributing 2.1% of electricity and wind energy is currently at 4.8%. These contributions against conventional fossil-based energies will continue to grow in coming years. Canadian Solar Inc. (CSIQ) is a promising company in  the solar energy sector. Its stock was at £14.71 on 20 March 2020 and rose to £63 on 22 January 2021.

What Are The Best Renewable Energy Stocks?

For years, there has been a significant increase in interest in renewable or sustainable energy. This global movement contributes to reducing the dependence on fossil fuel. Cheaper green energy, consumer awareness, support from governments, and climate change have encouraged the use of renewable energy. Renewable energy is a promising sector, and many companies are enjoying incredible growth despite the ongoing pandemic. This has led to sustainability among renewable energy stocks and investors are banking on the future of this growing industry.

With that in mind, we are going to take a look at some of the best renewable energy stocks to watch for in 2021:

General Motors (GM)- GM is a major player in the electric vehicle(EV) industry and many investors are piling into related green energy stocks. If you want to invest in the EV industry, GM is the best stock to consider. The company is making a substantial transition from legacy auto manufacturing into various green technology solutions.

NIO (NIO)- in China, NIO is the leading maker of premium electric vehicles and today, it’s a hot stock in the industry. In the past two years, it has gained more than 2,000% in value. In January 2021, the company reported a 352% growth in vehicle delivery, compared to the previous January. Analysts are forecasting that this momentum may continue throughout 2021/2022.

XPeng (XPEV)- while the premium EV market in China is dominated by NIO, XPeng is leading the smart EV market in the country. The company recorded 470% year on year growth in vehicle delivery. Through to 2025, analysts are forecasting steady growth in compound annual revenue.

SunRun (RUN)- SunRun develops, distributes, and installs solar panels for residential use. In the residential solar sector, SunRun is the best clean energy stock to choose. In 2021, RUN will benefit from multiple bullish factors, including Biden’s favourable policies on clean energy and the company’s current lead in the residential solar sector.

Sunnova Energy (NOVA)- Sunnova Energy is another leader in the residential solar sector with substantial long-term promises. Bullish factors for this company include outsized sales growth and Biden’s favorable federal policies.

Ormat Technologies (ORA)- Ormat Technologies is a major provider in geothermal technology and various recovered energy solutions with international presence.

Contact RWB Wealth

To learn more, contact RWB Wealth today and speak with a Financial Advisor who can answer any questions you might have. We offer non-obligatory initial phone/video calls, allowing you to be able to get the information you need to see if this the right choice for you.

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Written By RWB Wealth

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