10 Best Wind for December 2025
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Market Overview & Selection Criteria
The renewable energy sector has experienced remarkable momentum throughout 2025, with investors increasingly recognizing the long-term value proposition of clean energy infrastructure. Our selection methodology focuses on identifying companies with strong intrinsic value potential, sustainable cash flow generation, and meaningful exposure to the global energy transition. These ten stocks represent a diversified portfolio across geographies and renewable energy segments, including wind power, solar energy, hydroelectric generation, and integrated utility operations.
The stocks featured in this analysis were selected based on ValueSense's proprietary screening criteria, emphasizing companies with compelling intrinsic value calculations, quality ratings, and catalysts supporting long-term growth. Each company represents a distinct investment opportunity within the renewable energy ecosystem, from established utilities to high-growth renewable developers.
Featured Stock Analysis
Stock #1: GE Vernova Inc. (GEV)
| Metric | Value |
|---|---|
| Market Cap | $161.3B |
| Quality Rating | 6.1 |
| Intrinsic Value | $209.4 |
| 1Y Return | 79.9% |
| Revenue | $37.7B |
| Free Cash Flow | ($1,563.0M) |
| Revenue Growth | 9.4% |
| FCF margin | (4.1%) |
| Gross margin | 19.5% |
| ROIC | 0.7% |
| Total Debt to Equity | 0.0% |
Investment Thesis
GE Vernova Inc. represents one of the largest renewable energy infrastructure plays in the market, with a commanding market capitalization of $161.3 billion. The company has delivered exceptional returns, posting a 79.9% one-year return that reflects strong investor confidence in its growth trajectory. With a quality rating of 6.1 and an intrinsic value of $209.4, GEV demonstrates significant upside potential for value-oriented investors seeking exposure to the global energy transition.
The company's revenue base of $37.7 billion provides substantial scale and operational leverage as renewable energy adoption accelerates worldwide. While the company currently faces negative free cash flow of $1,563.0M, this reflects significant capital investments in growth initiatives rather than operational weakness. The 9.4% revenue growth rate indicates steady business expansion, positioning GEV to benefit from increasing demand for renewable energy solutions across multiple markets.
Key Catalysts
- Expansion of renewable energy infrastructure globally
- Increasing corporate and government commitments to decarbonization
- Strategic partnerships and acquisition opportunities
- Technology advancement in wind and solar generation
- Growing energy security concerns driving renewable adoption
Risk Factors
- Negative free cash flow requires careful monitoring of capital efficiency
- Execution risk on large-scale infrastructure projects
- Regulatory changes affecting renewable energy incentives
- Supply chain vulnerabilities in manufacturing
- Competition from other renewable energy providers
Stock #2: Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR)
| Metric | Value |
|---|---|
| Market Cap | $25.7B |
| Quality Rating | 5.6 |
| Intrinsic Value | $12.1 |
| 1Y Return | 88.8% |
| Revenue | R$42.6B |
| Free Cash Flow | R$14.1B |
| Revenue Growth | 12.0% |
| FCF margin | 33.2% |
| Gross margin | 45.9% |
| ROIC | 4.6% |
| Total Debt to Equity | 68.9% |
Investment Thesis
Eletrobrás stands out as a compelling value opportunity in the Brazilian utility sector, with an impressive 88.8% one-year return demonstrating strong market recognition. Trading at a market capitalization of $25.7 billion, the company offers exposure to Latin America's largest economy and its growing renewable energy infrastructure. With a quality rating of 5.6 and an intrinsic value of $12.1, EBR presents an attractive entry point for investors seeking international diversification within the renewable energy space.
The company's financial profile is notably robust, with revenue of R$42.6 billion and exceptional free cash flow generation of R$14.1 billion. The 33.2% free cash flow margin demonstrates operational excellence and strong cash conversion, providing substantial resources for dividends, debt reduction, and reinvestment. Revenue growth of 12.0% reflects Brazil's expanding energy demand and Eletrobrás' strategic positioning within the country's energy infrastructure.
Key Catalysts
- Brazil's renewable energy expansion initiatives
- Hydroelectric generation optimization
- Privatization and operational efficiency improvements
- Growing electricity demand in emerging markets
- Strategic infrastructure investments
Risk Factors
- High debt-to-equity ratio of 68.9% requires monitoring
- Currency fluctuation risks with Brazilian real exposure
- Regulatory changes in Brazilian energy markets
- Commodity price volatility affecting energy pricing
- Political and economic uncertainty in Brazil
Stock #3: Korea Electric Power Corporation (KEP)
| Metric | Value |
|---|---|
| Market Cap | $23.2B |
| Quality Rating | 6.8 |
| Intrinsic Value | $30.0 |
| 1Y Return | 102.3% |
| Revenue | â©97.3T |
| Free Cash Flow | â©1,457.4B |
| Revenue Growth | 5.3% |
| FCF margin | 1.5% |
| Gross margin | 60.9% |
| ROIC | 6.3% |
| Total Debt to Equity | N/A |
Investment Thesis
Korea Electric Power Corporation delivers one of the most impressive one-year returns in this portfolio at 102.3%, reflecting strong investor enthusiasm for the company's strategic positioning. With a market capitalization of $23.2 billion and a quality rating of 6.8—the highest among our featured stocks—KEP represents a high-quality renewable energy play with significant upside potential. The intrinsic value of $30.0 suggests meaningful valuation opportunity for discerning investors.
KEP's financial foundation is exceptionally strong, with revenue of ₩97.3 trillion and free cash flow of ₩1,457.4 billion. The company's 60.9% gross margin demonstrates pricing power and operational efficiency, while a 6.3% return on invested capital indicates effective capital deployment. These metrics position KEP as a financially stable utility with the resources to fund renewable energy transitions and shareholder returns simultaneously.
Key Catalysts
- South Korea's renewable energy transition targets
- Nuclear and renewable energy infrastructure expansion
- Grid modernization and smart energy initiatives
- Export opportunities for energy technology
- Government support for clean energy initiatives
Risk Factors
- Regulatory oversight of utility pricing and operations
- Geopolitical tensions affecting energy security
- Competition from alternative energy providers
- Technology disruption in power generation
- Exposure to commodity price fluctuations
Stock #4: Brookfield Renewable Corporation (BEPC)
| Metric | Value |
|---|---|
| Market Cap | $7,402.4M |
| Quality Rating | 5.6 |
| Intrinsic Value | $424.8 |
| 1Y Return | 31.8% |
| Revenue | $4,493.8M |
| Free Cash Flow | ($801.3M) |
| Revenue Growth | 6.5% |
| FCF margin | (17.8%) |
| Gross margin | 40.0% |
| ROIC | 1.3% |
| Total Debt to Equity | 139.5% |
Investment Thesis
Brookfield Renewable Corporation offers focused exposure to renewable energy infrastructure with a market capitalization of $7.4 billion and a one-year return of 31.8%. The company's quality rating of 5.6 and intrinsic value of $424.8 indicate substantial valuation opportunity for investors seeking pure-play renewable energy exposure. BEPC's diversified portfolio of hydroelectric, wind, and solar assets provides geographic and technology diversification within a single investment vehicle.
The company generated revenue of $4.5 billion with a 40.0% gross margin, demonstrating solid operational performance in renewable energy generation. However, investors should note the negative free cash flow of $801.3M and corresponding 17.8% FCF margin, which reflect significant capital investments in expanding the renewable energy portfolio. This investment phase is typical for growth-oriented renewable energy companies building long-term cash-generating assets.
Key Catalysts
- Expansion of renewable energy generation capacity
- Long-term power purchase agreements providing revenue stability
- Strategic acquisitions of renewable assets
- Increasing electricity demand from data centers and AI infrastructure
- Government renewable energy incentives and subsidies
Risk Factors
- High debt-to-equity ratio of 139.5% requires careful monitoring
- Negative free cash flow during growth phase
- Weather and hydrological variability affecting generation
- Interest rate sensitivity given leverage levels
- Regulatory changes affecting renewable energy economics
Stock #5: Enlight Renewable Energy Ltd (ENLT)
| Metric | Value |
|---|---|
| Market Cap | $5,010.8M |
| Quality Rating | 6.7 |
| Intrinsic Value | $26.8 |
| 1Y Return | 137.6% |
| Revenue | $487.2M |
| Free Cash Flow | ($966.4M) |
| Revenue Growth | 36.0% |
| FCF margin | (198.4%) |
| Gross margin | 59.6% |
| ROIC | 5.2% |
| Total Debt to Equity | 230.8% |
Investment Thesis
Enlight Renewable Energy Ltd represents a high-growth renewable energy developer with exceptional momentum, delivering a 137.6% one-year return. With a market capitalization of $5.0 billion and a quality rating of 6.7, ENLT combines growth characteristics with reasonable financial quality. The intrinsic value of $26.8 suggests potential valuation opportunity for investors with conviction in the company's growth trajectory and market expansion.
The company's 36.0% revenue growth rate stands out as the highest in this portfolio, reflecting rapid expansion in renewable energy development and deployment. Revenue of $487.2 million and a 59.6% gross margin demonstrate strong pricing power and operational efficiency in renewable energy generation. While the company currently exhibits negative free cash flow of $966.4M and a 198.4% FCF margin, this reflects the capital-intensive nature of building renewable energy infrastructure and the company's growth investment phase.
Key Catalysts
- Rapid expansion of renewable energy capacity
- Entry into new geographic markets
- Long-term power purchase agreements
- Technology improvements in solar and wind generation
- Increasing corporate demand for renewable energy
Risk Factors
- Extremely high debt-to-equity ratio of 230.8% presents leverage concerns
- Negative free cash flow and high capital requirements
- Execution risk on rapid expansion plans
- Commodity price volatility affecting project economics
- Regulatory and permitting delays
Stock #6: Algonquin Power & Utilities Corp. (AQN)
| Metric | Value |
|---|---|
| Market Cap | $4,719.7M |
| Quality Rating | 5.8 |
| Intrinsic Value | $9.2 |
| 1Y Return | 26.2% |
| Revenue | $2,387.7M |
| Free Cash Flow | ($309.7M) |
| Revenue Growth | (7.0%) |
| FCF margin | (13.0%) |
| Gross margin | 73.9% |
| ROIC | 2.5% |
| Total Debt to Equity | N/A |
Investment Thesis
Algonquin Power & Utilities Corp. provides diversified exposure to renewable energy and utility infrastructure with a market capitalization of $4.7 billion and a one-year return of 26.2%. The company's quality rating of 5.8 and intrinsic value of $9.2 suggest reasonable valuation for investors seeking stable utility exposure with renewable energy components. AQN's business model combines regulated utility operations with renewable energy generation, providing revenue stability and growth opportunities.
The company's revenue base of $2.4 billion and exceptional 73.9% gross margin reflect the high-margin nature of utility operations and renewable energy generation. However, the company faces headwinds with negative revenue growth of 7.0% and negative free cash flow of $309.7M, indicating operational challenges or significant capital investments. These metrics warrant careful analysis of the company's strategic initiatives and capital allocation priorities.
Key Catalysts
- Renewable energy portfolio expansion
- Regulated utility rate increases
- Acquisition opportunities in utility sector
- Infrastructure modernization investments
- Dividend sustainability and growth
Risk Factors
- Declining revenue trend requires investigation
- Negative free cash flow during transition period
- Regulatory oversight of utility pricing
- Interest rate sensitivity affecting financing costs
- Integration risks from acquisitions
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Stock #7: TransAlta Corporation (TAC)
| Metric | Value |
|---|---|
| Market Cap | $3,419.9M |
| Quality Rating | 5.3 |
| Intrinsic Value | $5.7 |
| 1Y Return | 29.8% |
| Revenue | CA$2,484.0M |
| Free Cash Flow | CA$351.0M |
| Revenue Growth | (11.0%) |
| FCF margin | 14.1% |
| Gross margin | 53.5% |
| ROIC | 1.5% |
| Total Debt to Equity | N/A |
Investment Thesis
TransAlta Corporation represents a traditional utility transitioning toward renewable energy, with a market capitalization of $3.4 billion and a one-year return of 29.8%. The company's quality rating of 5.3 and intrinsic value of $5.7 indicate potential value opportunity for investors seeking exposure to utility transformation. TAC's strategic shift toward renewable energy generation positions the company to benefit from long-term energy transition trends while maintaining stable utility operations.
The company generated revenue of CA$2.5 billion with a 53.5% gross margin, demonstrating solid operational performance. Notably, TransAlta maintains positive free cash flow of CA$351.0M with a 14.1% FCF margin, indicating strong cash generation capabilities. However, the company faces revenue headwinds with 11.0% revenue decline, reflecting the challenging transition from traditional generation to renewable energy sources and the impact of commodity price cycles.
Key Catalysts
- Transition to renewable energy generation
- Retirement of coal-fired generation assets
- Long-term power purchase agreements
- Dividend sustainability and growth
- Strategic asset sales and portfolio optimization
Risk Factors
- Declining revenue trend from legacy operations
- Transition execution risks
- Commodity price volatility affecting economics
- Regulatory changes in Canadian energy markets
- Stranded asset risks from coal generation retirement
Stock #8: ReNew Energy Global Plc (RNW)
| Metric | Value |
|---|---|
| Market Cap | $2,759.0M |
| Quality Rating | 6.4 |
| Intrinsic Value | $12.1 |
| 1Y Return | 26.2% |
| Revenue | â¹122.8B |
| Free Cash Flow | â¹4,724.0M |
| Revenue Growth | 46.4% |
| FCF margin | 3.8% |
| Gross margin | 83.5% |
| ROIC | 7.1% |
| Total Debt to Equity | 540.2% |
Investment Thesis
ReNew Energy Global Plc delivers exceptional growth characteristics with a 46.4% revenue growth rate and a one-year return of 26.2%. With a market capitalization of $2.8 billion and a quality rating of 6.4, RNW represents a high-growth renewable energy developer with reasonable financial quality. The intrinsic value of $12.1 suggests potential valuation opportunity for investors with conviction in the company's expansion trajectory and market positioning.
The company's revenue of ₹122.8 billion and exceptional 83.5% gross margin demonstrate strong pricing power and operational efficiency in renewable energy generation. RNW generates positive free cash flow of ₹4.7 billion with a 3.8% FCF margin, indicating the company's ability to generate cash despite rapid growth investments. The 7.1% return on invested capital reflects effective capital deployment in renewable energy projects.
Key Catalysts
- Rapid renewable energy capacity expansion
- Geographic diversification across emerging markets
- Long-term power purchase agreements
- Technology improvements in solar and wind
- Government renewable energy incentives
Risk Factors
- Extremely high debt-to-equity ratio of 540.2% presents significant leverage concerns
- Execution risk on rapid expansion
- Emerging market regulatory and political risks
- Commodity price volatility affecting project economics
- Currency fluctuation risks
Stock #9: Daqo New Energy Corp. (DQ)
| Metric | Value |
|---|---|
| Market Cap | $2,143.9M |
| Quality Rating | 6.0 |
| Intrinsic Value | $152.7 |
| 1Y Return | 58.2% |
| Revenue | $639.7M |
| Free Cash Flow | ($263.1M) |
| Revenue Growth | (51.2%) |
| FCF margin | (41.1%) |
| Gross margin | (34.2%) |
| ROIC | (16.2%) |
| Total Debt to Equity | 0.0% |
Investment Thesis
Daqo New Energy Corp. presents a contrarian opportunity in the renewable energy supply chain, with a market capitalization of $2.1 billion and a one-year return of 58.2%. The company's quality rating of 6.0 and intrinsic value of $152.7 suggest substantial valuation opportunity for investors with conviction in the company's recovery potential. DQ operates in the solar polysilicon segment, providing exposure to the upstream supply chain of solar energy generation.
The company's financial profile reflects significant near-term challenges, with revenue of $639.7 million declining 51.2% year-over-year and negative gross margin of 34.2%. The company generated negative free cash flow of $263.1M with a 41.1% FCF margin, indicating operational stress from industry oversupply and pricing pressures. However, the company maintains zero debt-to-equity ratio, providing financial flexibility to navigate the current industry cycle.
Key Catalysts
- Solar polysilicon market recovery and pricing stabilization
- Capacity utilization improvements
- Cost reduction initiatives
- Potential industry consolidation
- Long-term solar energy demand growth
Risk Factors
- Severe near-term profitability challenges
- Negative gross margins indicate pricing pressure
- Industry oversupply affecting economics
- Execution risk on turnaround initiatives
- Commodity price volatility in polysilicon markets
- Geopolitical risks affecting supply chains
Stock #10: Cadeler A/S (CDLR)
| Metric | Value |
|---|---|
| Market Cap | $1,542.1M |
| Quality Rating | 5.9 |
| Intrinsic Value | $18.8 |
| 1Y Return | -28.3% |
| Revenue | €538.7M |
| Free Cash Flow | (€664.2M) |
| Revenue Growth | 198.9% |
| FCF margin | (123.3%) |
| Gross margin | 64.3% |
| ROIC | 9.9% |
| Total Debt to Equity | 99.1% |
Investment Thesis
Cadeler A/S represents a specialized offshore wind infrastructure provider with a market capitalization of $1.5 billion and a one-year return of 28.3%, indicating recent market challenges. The company's quality rating of 5.9 and intrinsic value of $18.8 suggest potential valuation opportunity for contrarian investors seeking exposure to offshore wind infrastructure. CDLR's focus on specialized vessel operations for offshore wind installation positions the company to benefit from the accelerating offshore wind energy transition.
The company exhibits exceptional revenue growth of 198.9%, reflecting rapid expansion in offshore wind infrastructure services. Revenue of €538.7 million and a 64.3% gross margin demonstrate strong pricing power in specialized offshore services. However, the company faces significant near-term challenges with negative free cash flow of €664.2M and a 123.3% FCF margin, reflecting the capital-intensive nature of building specialized offshore wind vessels and the company's growth investment phase.
Key Catalysts
- Accelerating offshore wind energy deployment
- Expansion of specialized vessel fleet
- Long-term service contracts with wind developers
- Geographic expansion into new offshore markets
- Technology improvements in installation efficiency
Risk Factors
- Negative free cash flow and high capital requirements
- Extremely high debt-to-equity ratio of 99.1%
- Recent stock price decline indicating market concerns
- Execution risk on vessel construction and deployment
- Commodity price volatility affecting project economics
- Regulatory changes affecting offshore wind development
Portfolio Diversification Insights
This collection of ten renewable energy stocks provides comprehensive diversification across multiple dimensions of the clean energy ecosystem. Geographic diversification spans North America, Europe, South America, and Asia, reducing concentration risk while providing exposure to different regulatory environments and energy transition timelines. Technology diversification includes hydroelectric generation (Eletrobrás, KEP), wind power (GE Vernova, Cadeler), solar energy (Daqo, Enlight), and integrated utility operations (Brookfield, Algonquin, TransAlta, ReNew).
Business model diversification ranges from large-cap integrated utilities (GE Vernova, Eletrobrás, KEP) to mid-cap renewable developers (Brookfield, Enlight, ReNew) to specialized infrastructure providers (Cadeler). This diversity ensures that portfolio performance is not dependent on any single company, technology, or geographic market. Financial profile diversification includes both mature cash-generating utilities and high-growth renewable developers, allowing investors to balance income generation with capital appreciation potential.
The portfolio quality ratings range from 5.3 to 6.8, indicating a mix of financial quality levels. Investors seeking lower-risk exposure should focus on higher-quality companies like Korea Electric Power 6.8 and Enlight 6.7, while those with higher risk tolerance may consider opportunities like TransAlta 5.3 or Algonquin 5.8. The intrinsic value calculations suggest that several stocks offer meaningful valuation opportunities, with GE Vernova, Brookfield, and Daqo presenting particularly compelling risk-reward profiles.
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FAQ Section
Q1: How were these stocks selected for this renewable energy portfolio?
These ten stocks were selected using ValueSense's proprietary screening methodology, which emphasizes companies with compelling intrinsic value calculations, reasonable quality ratings, and meaningful exposure to renewable energy infrastructure and generation. The selection process considered geographic diversification, technology exposure, business model variety, and financial profile balance to create a comprehensive renewable energy portfolio. Each company was evaluated based on fundamental financial metrics, growth prospects, and valuation opportunity relative to intrinsic value estimates.
Q2: Which stock from this list offers the best risk-adjusted opportunity?
Korea Electric Power Corporation (KEP) stands out as the highest-quality option with a 6.8 quality rating, strong 102.3% one-year return, and exceptional financial metrics including 60.9% gross margin and 6.3% ROIC. For investors seeking growth potential, Enlight Renewable Energy (ENLT) offers the highest revenue growth at 36.0% with a respectable 6.7 quality rating. The "best" stock depends on individual risk tolerance, investment timeline, and portfolio objectives—conservative investors should prioritize quality ratings, while growth-oriented investors may focus on revenue growth and expansion catalysts.
Q3: Should I invest in all these renewable energy stocks or focus on a smaller subset?
Portfolio construction depends on your investment capital, risk tolerance, and time horizon. A diversified approach investing in 5-7 stocks from this portfolio provides meaningful diversification across geographies, technologies, and business models while remaining manageable. Conservative investors should focus on higher-quality companies (KEP, ENLT, RNW) with stronger financial profiles, while aggressive investors may include higher-leverage companies (BEPC, ENLT, RNW) for growth exposure. Consider your existing portfolio holdings to avoid excessive sector concentration in renewable energy.
Q4: What are the biggest risks with these renewable energy picks?
The primary risks include leverage concerns (several companies have debt-to-equity ratios exceeding 100%), negative free cash flow in growth-phase companies, regulatory changes affecting renewable energy incentives, and commodity price volatility. Geographic and political risks affect international companies like Eletrobrás and ReNew Energy. Technology disruption and competition from alternative energy sources present long-term risks. Additionally, interest rate sensitivity affects highly leveraged companies, and execution risk on expansion plans could impact growth projections. Investors should carefully evaluate risk factors specific to each company before investing.
Q5: When is the best time to invest in these renewable energy stocks?
Renewable energy stocks typically perform well during periods of declining interest rates, increasing corporate sustainability commitments, and government renewable energy incentives. Current market conditions reflect strong investor enthusiasm for clean energy, with most stocks in this portfolio delivering positive one-year returns. However, individual stocks like Cadeler (down 28.3%) may present contrarian opportunities for patient investors. Consider dollar-cost averaging into positions over time to reduce timing risk, and align your entry points with your investment thesis and risk tolerance rather than attempting to time market peaks and troughs.