Four Spanish stocks to take advantage of the energy crisis in the stock market

The global energy crisis triggered by the war in Ukraine is accelerating the transition to a more sustainable energy system and favoring listed companies that are betting on clean energy. The latest report from the International Energy Agency (IEA) points out that along with short-term measures to try to protect consumers from the impacts of the crisis, many governments are increasing the use of renewables, which is acting as a catalyst for listed companies in a sector that experienced its greatest peak in the middle of last year. This is revealed by data from the S&P Global Clean Energy Index, which lists the leading clean energy companies.

Far from the highs recorded by the sector in the middle of last year, investors remain attentive to companies specializing in clean energy and their business expectations, despite an environment of rising interest rates. The Spanish stocks that are performing best in 2023 are led by small photovoltaic companies listed on the BME Growth market.

One of them is EiDF. Since it went public in 2021, its shares have soared by 550% and its capitalization stands at 1,579 million euros. A stock market value that, if maintained, could propel it directly to the senior stock market. It is a leap in which it is already working and for which it has hired Lazard as a strategic advisor. However, so far this year, its shares have fallen by 2.5%.

Another photovoltaic energy company that has been shining brightly since it went public in July 2022 is Umbrella Solar Investment. Based in Valencia, the group's shares have appreciated by 8.2% since then. Even so, the value is far from the 7.3 euros per share at which it traded last September.

Its case is similar to that of Energy Solar Tech, another Spanish company dedicated to facilitating the green transition of industrial companies through an energy outsourcing model. The company debuted on the BME Growth at the end of 2022 with a value of E4.05 per share; today the price is E6.87 per share.

Among the stock market debuts made last year in BME Growth is also another example of a firm linked to photovoltaics: Enerside Energy. So far this year, the Catalan company has accumulated a revaluation of 33.8%, which has led its capitalization to rise to over 200 million euros. In addition to Spain, the company has an international presence in countries with high growth in the photovoltaic industry, such as Chile, Italy, Uruguay and Brazil.

Within the continuous market, OPDE stands out. The company, which last year was the only senior stock market debut despite the turbulence that hit the markets in 2022. The stock set its debut price at 4.75 euros per share, and after trading above 5.25 euros, it is now trading below that price. Yesterday it closed at 4.25 euros.

The sector's major players

Among the major leaders in clean energy production is Brookfield Renewable Partners. It is one of the world's largest producers, with a generating capacity of more than 20,000 megawatts from a combination of hydro, wind and solar power. Since its founding in 2011, the company has generated an annualized total return of 18%.

Another of the best positioned companies is First Solar. Its capitalization exceeds $15 billion. SolarEdge Technologies is arguably the most highly valued solar industry company. Its shares are up 15.76% year-to-date. Bloomberg estimates that the company's revenues could nearly double in 2023 versus 2021.