Green tech stocks of all shapes and sizes are getting hammered. So we found five that are already making money.
Green technology saw a boom around 2011 and 2012. Optimism about the industry soared, and a new, greener administration in Washington lavished funding and government grants upon alternative energy startups. But some of these companies have performed better than others, and not all of them ended up turning into green tech stocks Tesla Motors (TSLA).
As a result, the money's starting to dry up.
Now for one, green stocks come in many shapes and sizes, so they're hard to compare. You can get special grants if you make anything from wind turbines, to super-charged batteries, to things that help us dispose of our waste more efficiently.
One thing that unites all these different micro-industries is the growing skepticism of investors. Venture capital for green start-ups went down 67% this year.
Part of the problem likely has to do with shale booms in the US and the UK, and the nascent oil boom in Mexico. With the increasing supply of fossil fuels, spending lots of money refining technology for energy sources like solar started to make less sense.
However, the problem is also probably an issue of valuation. As green tech stocks were among the best performing of 2012 and 2013, many investors were then dissuaded by high prices.
If the depression in value of green tech stocks is simply a pull-back, that might indicate there are buying opportunities for value investors interested in green technologies.
We decided to build a list of green stocks with low valuations, high operating margins relative to the sector, and dividend yields - all of which are important to value investors like Warren Buffet when venturing into the highly volatile technology sector.
Many of these green tech stocks are not necessarily growth companies like Tesla - and some have been around for decades. Yet they all have substantial green investments, such as in railroads or nuclear power, and all fit in to our value screen.
So should value investors dig deeper into green tech stocks?
Click on the interactive chart to view analyst ratings over time.
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Do you see investing opportunities in these environmentally friendly tech stocks? Use the list below to begin your analysis.
1. Trinity Industries Inc. (TRN, Earnings, Analysts, Financials):
Provides products and services to the industrial, energy, transportation, and construction sectors primarily in the United States, Canada, Mexico, the United Kingdom, Singapore, and Sweden. Market cap at $4.16B, most recent closing price at $52.56.
Dividend Yield: 1.14%
Operating Margins: 16.6%
Forward P/E Ratio: 9.26.
Green Investments: Works in rail transportation and the construction of wind turbines.
2. FutureFuel Corp. (FF, Earnings, Analysts, Financials):
Engages in the manufacture and sale of specialty chemicals and bio-based products primarily in the United States. Market cap at $669.20M, most recent closing price at $15.27.
Dividend Yield: 3.14%
Operating Margins: 18.3%
Forward P/E Ratio: 14.49.
Green Investments: Biofuel.
3. Exelon Corporation (EXC, Earnings, Analysts, Financials):
Operates as a utility services holding company in the United States. Market cap at $23.74B, most recent closing price at $27.78.
Dividend Yield: 4.46%
Operating Margins: 15%
Forward P/E Ratio: 12.32.
Green Investments: Nuclear power.
4. Applied Materials Inc. (AMAT, Earnings, Analysts, Financials):
Provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide. Market cap at $20.31B, most recent closing price at $16.66.
Dividend Yield: 2.4%
Operating Margins: 11%
Forward P/E Ratio: 12.49.
Green Investments: Semiconductors and solar power.
5. AZZ Incorporated (AZZ, Earnings, Analysts, Financials):
Manufactures electrical equipment and components for power generation, transmission and distribution, and industrial markets primarily in the United States and Canada. Market cap at $1.2B, most recent closing price at $46.56.
Dividend Yield: 1.2%
Operating Margins: 16%
Forward P/E Ratio: 14.15.
Green Investments: Nuclear power components and efficient electrical equiptment.
(List compiled by James Dennin. Green stocks index sourced from Altenergystocks.com. Analyst ratings sourced from Zacks Investment Research. Market capitalization and closing prices sourced from Yahoo! Finance. All other data sourced from Finviz.)
Analyze These Ideas: Getting StartedRead descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, FilingsTrinity Industries Inc.(TRN, Chart, Download SEC Filings) FutureFuel Corp.(FF, Chart, Download SEC Filings) Exelon Corporation(EXC, Chart, Download SEC Filings) Applied Materials Inc.(AMAT, Chart, Download SEC Filings) AZZ Incorporated(AZZ, Chart, Download SEC Filings)
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