3 Wind Stocks to Grab Global Growth

Worldwide investment in renewable energy is ramping up and wind stocks are likely to take a piece of that pie. Here are three worth watching.

offshore wind farm
(Image credit: Getty Images)

The friction between Russia and Ukraine has again brought to the forefront the importance of renewable energy sources, as it has become apparent how dependent Europe is on Russia for the supply of fossil fuels.

In reaction, the European Union in early March unveiled a new plan to accelerate near-term deployment for renewables by 20% – a move BofA Securities strategists say boosts the outlook for wind stocks and other green energy investments.

And in the U.S., the federal government recently netted a record $4.37 billion through the sale of more than 488,000 acres in the Atlantic Ocean, off the coasts of New York and New Jersey. The six offshore sites, once developed, are expected to generate around 7 gigawatts (GW) of clean energy.

But this may be only the beginning, given President Joe Biden's plan of deploying 30 GW of offshore wind energy in the U.S. by 2030. Plus, the Energy Information Administration (EIA) expects the the share of solar and wind renewable energy sources will grow from 13% in 2021 to 17% in 2023.

What's more, according to a report by the University of Delaware's Special Initiative on Offshore Wind (SIOW), private-sector investment in U.S. offshore wind could reach $109 billion by the end of the decade.

With that in mind, here are three wind stocks that are well-positioned to harness this growth. To narrow down our list, we turned to the TipRanks (opens in new tab) database to find names that analysts' are upbeat on. The wind energy stocks featured here either have Buy or Strong Buy ratings from the Wall Street pros or are targeted for significant upside potential over the next 12 months. Let's take a closer look.

Data is as of March 13.

Shrilekha Pethe
Contributing Writer, Kiplinger.com

Shrilekha Pethe has over four years of experience in both financial research and writing financial content, specifically in the areas of technology, media and telecommunications. She has completed a post-graduate degree in finance.