3 green energy stocks bucking the downtrend

Although green energy stocks have had their trials and tribulations, the sector offers big rewards for those willing to risk the volatility. Given the political and ideological currents that favor green development, this is a viable area.

According to Precedence Research, the global renewable energy market reached $970 billion in 2022. By 2032, the sector could be worth over $2.18 trillion. If so, such an expansion would correspond to an average annual growth rate of 8.5% from 2023.

Of course, forecasts are not guarantees. Nevertheless, this sector offers high return potential due to the uncertainty surrounding it. If you're ready to play, below are the green energy stocks you should consider.

NextEra Energy (NEE)

One of the strongest names among green energy stocks: NextEra Energy (NYSE:NEVER) generates and distributes electricity to retail and wholesale customers. It generates electricity in a variety of ways, including wind and solar. In addition, NextEra develops, builds and operates long-term contracted facilities consisting of clean energy solutions.

Of course, NextEra has had its share of ups and downs. However, the company was financially robust throughout. Over the trailing four quarters, NextEra's average positive earnings surprise was 9.53%. For the current year, analysts expect earnings per share of $3.40, which is higher than the previous year's result of $3.17.

The bottom line is that coverage experts predict sales of $27.86 billion. Although this is around 1% less than last year (US$28.11 billion), the most optimistic target is US$32.68 billion. The following year, top-end sales could reach $34.34 billion.

Finally, NextEra offers an annual dividend yield of 3.06%. Overall, NEE is one of the top green energy stocks to buy.

Brookfield Renewable (BEP)

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Based in Toronto, Ontario, Canada, Brookfield Renewables (NYSE:BEP) owns a portfolio of renewable energy generation assets. The company operates primarily in North America, Colombia and Brazil. It generates electricity through hydroelectric power, wind power, solar energy and pumped storage. It also offers renewable natural gas and carbon capture, among other services.

Now, what makes BEP one of the riskier ideas among green energy stocks is its lack of consistency. In the first three quarters of last year, the average quarterly surprise was a loss of 515.27%. However, Brookfield partially paid off its earnings in the fourth quarter with EPS of 1 cent. The target called for a loss of 4 cents.

For fiscal 2024, analysts expect a loss of 80 cents, an unfavorable increase from last year's loss of 32 cents. In addition, moderate growth is expected with sales of $4.97 billion. Last year, sales were $4.92 billion.

However, fiscal 2025 revenue is expected to be $5.7 billion, up 14.6% from forecast 2024 revenue.

Algonquin Power & Utilities (AQN)

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Headquartered in Oakville, Ontario, Canada, Algonquin Power & Utilities (NYSE:AQN) operates in the energy and utilities industry. The Company operates two segments: Regulated Services Group and Renewable Energy Group. Algonquin primarily owns and operates a regulated electric power, water distribution and wastewater collection business. It also provides natural gas supply systems.

Like Brookfield Renewable, Algonquin's performance in fiscal 2023 was everywhere. The average earnings surprise was 3.75% below par. For the current fiscal year, analysts expect earnings per share of 51 cents with an upper target of 54 cents. Last year, the company earned 53 cents per share.

The bottom line is that sales could reach $2.94 billion, which would be 8.9% higher than last year's figure of $2.7 billion. In addition, the most optimistic forecast is for sales of $3.16 billion.

What might really entice investors is Algonquin's expected dividend yield of 6.99%. While the payout ratio is sky-high, AQN could be attractive to those looking to speculate on green energy stocks.

At the time of publication: Josh Enomoto did not have, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.