NextEra Energy recently passed Exxon Mobil in market cap with headlines citing the milestone for the “clean energy” company. It’s also one of the biggest utilities in the world, but by combining its 20th century fossil-fuel power generation model with decades of investment in renewable energy, investors are betting it s model is the future.
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Supply chain headwinds and policy uncertainty have hobbled clean energy stocks in 2021, but Oppenheimer believes next year will bring plenty of opportunities for investors to capitalize on the decarbonization theme.
The firm anticipates that 2022 will be a stock picker’s market as investors return to fundamental analysis. That means several factors will set companies apart from the pack: technology differentiation, cost of capital, management, and earnings power as opposed to top-line growth.
Oppenheimer has a list of outperform-rated stocks that it believes checks each of these boxes.