What are we looking for?
U.S.-listed companies within the clean energy space that may benefit should the Democratic Party presidential candidate be elected on Nov. 8.
The screen
Last week's U.S. presidential debate drew record audiences. Each candidate had distinctive views when it came to their economic policies, with Republican Party nominee Donald Trump stressing the need to bring manufacturing jobs back to the United States and Democratic nominee Hillary Clinton adding emphasis on investing in renewable technologies such as clean energy.
Using the Global Industry Classification Standard (GICS), we look at U.S. companies categorized as independent power and renewable electricity producers – which could benefit if Ms. Clinton wins the White House and keeps the focus on clean energy.
The companies included within the screen all have a market capitalization of at least $500-million (U.S.) and various fundamental and price performance metrics have been included as supplementary information. It will be interesting to track the performance of these companies over the coming weeks as the U.S. presidential race continues to heat up.
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What did we find?
Twelve results made the screen, turning in an average total return of 2.1 per cent over the past 52 weeks.
AES Corp. is the largest company among the screen results and has seen strong total returns over the past year largely because of solid performance in early 2016. Recently the stock has come under pressure because of tough increased competition among global renewables and delays in a major Chilean project, but there is still upside potential should the company execute on its long term management strategy.
Pattern Energy Group currently receives the highest analyst sentiment with its most recent acquisition of Armow wind farms coming through as expected, which, coupled with a 6.5-per-cent dividend yield, is highly favourable for investors.
This commentary does not provide individualized advice or recommendations for any specific subscriber or portfolio. Investors should conduct further research before investing.
Ryan Gottschalk works in the financial and risk unit of Thomson Reuters and specializes in asset management.