2 green energy stocks to buy with £2k

 

2 green energy stocks to buy with £2k

first_imgSimply click below to discover how you can take advantage of this. Rupert Hargreaves | Thursday, 17th June, 2021 | More on: GSF XPP Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Access this special "Green Industrial Revolution" presentation now 2 green energy stocks to buy with £2k Our 5 Top Shares for the New “Green Industrial Revolution"center_img It was released in November 2020, and make no mistake:It’s happening.The UK Government’s 10-point plan for a new “Green Industrial Revolution.”PriceWaterhouse Coopers believes this trend will cost £400billion……That’s just here in Britain over the next 10 years.Worldwide, the Green Industrial Revolution could be worth TRILLIONS.It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Enter Your Email Address Our 6 'Best Buys Now' Shares If I had £2,000 to invest in green energy stocks today, I’d buy shares in companies that provide the equipment the industry needs to grow.Indeed, I think businesses that provide equipment such as power transformers offer a better way to invest in the sector as a whole. This is the approach I’d use rather than trying to pick winners in individual sectors such as solar or wind energy. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...As such, here are two green energy stocks I’d buy with £2,000. Green energy stocks to buyThe first company on my list is XP Power (LSE: XPP). This enterprise is one of the world’s leading developers and manufacturers of critical power control components. Its largest customer is the industrial technology sector, followed by healthcare and semiconductor manufacturing. In its full-year results release, the company noted that an increasing emphasis by its customers on efficiency and concerns over climate change “should lead to more revenue opportunities to power renewable energy systems and controllers.” It already sees growth in the industrial technology sector, where demand for power control components for renewable energy systems is growing. For example, last year revenues increased 17%, and the group’s order intake rose 20%. It seems unlikely this kind of double-digit growth is sustainable. Nevertheless, as demand for green energy grows and the global economy expands, I believe the need for XP’s systems should continue to increase. That’s why I’d buy the stock for my portfolio today. The corporation operates in a fiercely competitive sector. It’s not the only business supplying critical power control components. As such, XP needs to make sure it’s investing for the future, or competitors could grab market share. Rising costs could also hurt profit margins. Energy storageOne of the problems the world is trying to deal with is renewable energy storage. Wind and solar energy are unreliable power sources. Companies and governments are building batteries to store energy and smooth out the supply to deal with this issue. To invest in this theme, I’d buy Gore Street Energy Storage (LSE: GSF). This company was London’s first listed energy storage business. It owns a portfolio of energy storage assets across the UK and US, providing 520MW of capacity. It claims this is the largest portfolio available to a financial investor.Additional facilities are in the pipeline. Management is reviewing 1GW of other assets to add to the portfolio. As the green energy sector expands, I think the demand for energy storage will increase. That’s why I’d buy Gore Street for my portfolio today. Unfortunately, the company’s first-mover advantage could become a drawback over the next few years. As the industry develops, I expect new entrants to arrive with more funding and access to better technology. This could leave Gore Street struggling to catch up. This is the most considerable risk hanging over the stock right now, in my opinion.  Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended XP Power. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by Rupert Hargreaveslast_img

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