Winners And Losers Of Q4: Generac (NYSE:GNRC) Vs The Rest Of The Renewable Energy Stocks

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Generac (NYSE:GNRC) and the rest of the renewable energy stocks fared in Q4.

Renewable energy companies are buoyed by the secular trend of green energy that is upending traditional power generation. Those who innovate and evolve with this dynamic market can win share while those who continue to rely on legacy technologies can see diminishing demand, which includes headwinds from increasing regulation against “dirty” energy. Additionally, these companies are at the whim of economic cycles, as interest rates can impact the willingness to invest in renewable energy projects.

The 17 renewable energy stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 4.6% while next quarter’s revenue guidance was 0.6% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 26.1% since the latest earnings results.

Generac (NYSE:GNRC)

With its name deriving from a combination of “generating” and “AC”, Generac (NYSE:GNRC) offers generators and other power products for residential, industrial, and commercial use.

Generac reported revenues of $1.23 billion, up 16.1% year on year. This print fell short of analysts’ expectations by 0.7%, but it was still a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.

“Our fourth quarter results highlight our ability to rapidly increase production and execute on the strong demand for home standby and portable generators resulting from elevated outage activity in the second half of the year,” said Aaron Jagdfeld, President and Chief Executive Officer.Generac Total Revenue

The stock is down 23.8% since reporting and currently trades at $108.

Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.

Best Q4: Bloom Energy (NYSE:BE)

Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.

Bloom Energy reported revenues of $572.4 million, up 60.4% year on year, outperforming analysts’ expectations by 12.8%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.Bloom Energy Total Revenue

Bloom Energy scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 26.7% since reporting. It currently trades at $16.86.

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Is now the time to buy Bloom Energy? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: TPI Composites (NASDAQ:TPIC)

Founded in 1968, TPI Composites (NASDAQ:TPIC) manufactures composite wind turbine blades and provides related precision molding and assembly systems.

TPI Composites reported revenues of $346.5 million, up 16.7% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

As expected, the stock is down 45.2% since the results and currently trades at $0.79.

Read our full analysis of TPI Composites’s results here.

Nextracker (NASDAQ:NXT)

With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dabhi solar farm project, Nextracker (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.

Nextracker reported revenues of $679.4 million, down 4.4% year on year. This result topped analysts’ expectations by 3.6%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates.

The stock is down 5.6% since reporting and currently trades at $37.41.

Read our full, actionable report on Nextracker here, it’s free.

FuelCell Energy (NASDAQ:FCEL)

Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.

FuelCell Energy reported revenues of $19 million, up 13.8% year on year. This print lagged analysts' expectations by 47.6%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.

The stock is down 36.8% since reporting and currently trades at $4.02.

Read our full, actionable report on FuelCell Energy here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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