As Americans debate the culpability of Big Oil in the Gulf of Mexico spill that took place two weeks ago — and continues to gush crude oil into Gulf Coast waters — one industry shows promising growth trends and potential solutions to U.S. oil dependency — alternative energy.
“One of the [growth] trends is the technological evolution of alternative energy technologies. This can include more efficient solar cells, more scalable next-generation wind turbines and, further down the road, things like electrical vehicles and so on,” said Pavel Molchanov, an analyst who covers the alternative energy industry for Raymond James & Associates, Inc.
“Certainly as technology improves, these products come down the cost curve. By definition, they are becoming more cost competitive relative to the conventional types of energy, and that presents opportunities to investors. In other words, as alternatives enter the mainstream, the growth curve naturally will improve,” he added.
Molchanov’s favorite clean-technology stock picks include American Superconductor (AMSC), a wind play that offers exposure to China’s growing wind market and turbine producers, and Trina (TSL), a solar company that has maintained high margins and is poised to increase market share significantly this year.