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7 Best Green Penny Stocks to Buy Now


Investors love penny stocks because of their upside potential. These same investors should consider scouting for the best green penny stocks especially because a clear trend towards sustainable investing is not slowing: between 2018 and 2036, ESG and sustainable investing are expected to increase by 43%.

The worldview is changing and more and more investors are demanding that environmental stewardship and profitable returns must co-exist. The numbers behind ESG funds also support their mandates from a business perspective. 77% of ESG funds that were 10 years old were still in existence at the start of 2022. This number was well below 46% for conventional funds.

This strongly suggests that the best green penny stocks below will provide big gains.

CSIA American superconductor $3.95
computer Babcock & Wilcox Enterprises $5.11
VVPR VivoPower International $0.37
REI energy ring $2.68
FTEK Fuel Technology $1.34
FLOOR ReneSola $4.55
DNN Denison Mining $1.19

American Superconductor (AMSC)

Source: Khanthachai C / Shutterstock.com

The investment argument that favors American superconductor (NASDAQ:CSIA) as one of the best green penny stocks builds on the company’s strong demand momentum.

The company improves the efficiency, reliability and affordability of wind projects for utility companies and developers. While its second-quarter revenue fell $0.2 million year-over-year to $27.7 million, demand remains very strong.

The company booked $30 million in new orders during the quarter. These $30 million in orders bring the company’s backlog to over $100 million.

It’s clear that its products and solutions continue to have a strong market, but it’s also clear that American Superconductor faces the same supply chain issues that are choking businesses everywhere.

These problems simply mean that the building blocks of an end product are now more difficult to find than before. So investors who think supply chain issues will improve should buy AMSC stock because it has a large revenue stream waiting to hit its books.

The company reported a net loss of $9.9 million in the second quarter, but kept $37.4 million in cash. In other words, it may continue to pick up order for some time and will increase rapidly once things normalize.

Babcock & Wilcox Enterprises (BW)

Environmental protection, renewable and sustainable energy sources.  Plant growing in light bulb concept

Source: Studio Proxima / Shutterstock.com

Babcock & Wilcox Enterprises (NYSE:computer) provides power generation equipment and environmental equipment for the renewable and fossil energy sectors. The company’s overall trajectory is very positive, as evidenced by its overweight analyst rating which is up nearly 100%.

The only fundamental issue against BW stock is its $20.6 million net loss in the third quarter. This represented a clear reversal of fortune from net income of $13.6 million in Q3-21.

Babcock & Wilcox Enterprises faces the same supply chain bottlenecks as businesses everywhere. Its CEO lists shortages of raw materials, manufacturing and labor as the bottlenecks that negatively affect the company.

But demand remains very strong, and the company saw revenue rise 34% in the third quarter, reaching $214.9 million. The company also claims bookings of $227 million, a 31% increase from Q3 21.

The strong growth continues, with the company announcing separate deals worth $42 million and $24 million just one week after the release of third quarter results.

VivoPower International (VVPR)

a hand holding a light bulb on a green background to represent renewable energy stocks

Source: Shutterstock

VivoPower International (NASDAQ:VVPR) will continue to be recognized as one of the best green penny stocks.

The company is a certified B corporation, which simply means that it is focused on the triple bottom line of people, profit and the planet. While such designations can be controversial, VivoPower International remains an elite company: only 4,000 were B Corp certified in 2021.

Capital from investors will flow into ESG companies in the coming years based on growth forecasts. These investors will be looking for companies with certifications, so VVPR has an advantage.

The company designs electric vehicle battery conversion kits under its subsidiary Tembo and also designs electrical systems for solar power projects.

The company has entered into a definitive agreement with Toyota Australia for its Tembo EV conversion kits and announced 3,350 kit commitments by the end of the second quarter. While revenues have stagnated, the company appears to have opened up major markets in the Middle East and Southeast Asia where it can sell its EV conversion kits.

Energy Ring (REI)

Natural gas combined cycle power plant with sunset and light orange.  Best natural gas stocks to buy.

Source: Rangsarit Chaiyakun / Shutterstock.com

energy ring (NYSEAMERICAN:REI) is a relatively small oil and gas exploration company that continues to perform very well. First, Ring Energy has had four consecutive quarters in which it has exceeded EPS expectations.

This streak of strong quarterly performance continued when the company announced its third quarter results on November 9. The company posted its highest ever quarterly revenue with sales of $94.4 million.

Net income increased 79% during the period, reaching $75.1 million. While many companies are seeing their profits drop, Ring Energy instead saw its net profit drop from $41.9 million to $75.1 million.

The company also reported its 12th straight quarter of free cash flow. This means that Ring Energy had cash after accounting for all of its business transactions for each quarter of each of the past three years.

The company is also getting out of debt quickly. It now stands at 1.4X after the end of 2021 with a leverage of 3.5X based on EBITDA.

Fuel Technology (FTEK)

Image of a person holding a light bulb

Source: Shutterstock

Fuel Technology (NASDAQ:FTEK) the stock is up more than 200% and has momentum on its side with consecutive quarters in which it has posted gains. This makes it one of the best green penny stocks to buy on a roll.

Fuel Tech itself is a stable company backed by evidence-based engineering approaches to optimize combustion efficiency while minimizing air pollution. The company has installed more than 1,000 nitrogen oxide reduction units worldwide as well as carbon dioxide reduction units which reduce process costs.

Fuel Tech employs a relatively small employee base of 70 people, more than 70% of whom hold advanced degrees. The company is very focused on slowly scaling operations while respecting the reduction of costs and emissions for its partners.

It’s a slow approach. The company posted sales of $8.017 million in the third quarter, compared to $7.559 million on an annual basis. Net income decreased to $314,000 in the quarter from $678,000 a year earlier.

It’s fair to compare FTEK’s stock to a steadily growing company that relies on science and cares less about rapid growth. This should be of interest to investors in any economy, but even more so now that fundamentals matter more.

Rene Sola (SOL)

An image of a piggy bank shaped solar panel on a roof;  concept for solar stocks

Source: Andreas Prott/Shutterstock

ReneSola (NYSE:FLOOR) represents a developer and operator of solar projects with operations in more than 10 countries around the world.

ReneSola’s corporate strategy is to seek high-margin project development opportunities in geographies with clear policy positions. This allowed the company to establish leading positions in Poland, Hungary, Minnesota and New York.

ReneSola’s second quarter results indicate it is a growth opportunity with revenue jumping 134% to $8.2 million from $3.5 million a year earlier. While those numbers were impressive, they were lower than the company’s forecast, which the company blamed on delayed project sales.

The news was therefore somewhat mixed, but an optimistic investor might point to the fact that ReneSola still managed to post an EBITDA of $2.4 million.

The company sold $5.897 million worth of electricity to China, its main partner. Project development accounted for 25% of sales but, again, was delayed due to delays during the quarter.

Denison Mines (DNN)

periodic table concept with black cubes.  the element uranium shines

Source: Shutterstock

Denison Mining (NYSEAMERICAN:DNN) is an opportunity in the growing demand for nuclear energy. Denison Mines produces the uranium that powers nuclear energy.

Nuclear power is a zero-emission energy source that splits uranium atoms to produce steam that powers turbines. Although nuclear power is controversial, generating electricity by fissioning uranium creates no emissions, unlike powering turbines with fossil fuels which does.

Demand from nuclear power plants is increasing, leading to a projected increase to 209 million pounds of uranium concentrate by 2035, from 180 million pounds in 2020.

Denison Mines controls a strategic portfolio of uranium assets that make it attractive. For one thing, the company maintains 2.5 million pounds of uranium stored in North American facilities. This uranium was acquired at an average cost of less than $30. This is important because uranium is expected to trade at around $60 a year from now.

The company also retains control, to varying degrees, of several mining projects, providing it with long-term benefits and strategic options for the future.

At the date of publication, Alex Sirois did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Alex Sirois is an Independent InvestorPlace Contributor whose personal equity investing style focuses on long-term stock picks, buy-and-hold and wealth building. Having worked in multiple industries, from trading electronics to translation to education and using his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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