10 Best Wind for February 2026
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Market Overview & Selection Criteria
The renewable energy sector continues to attract attention amid global pushes for sustainable power, with wind, solar, and utility-scale projects driving growth. Value Sense's curated watchlist highlights 10 undervalued renewable energy stocks selected using proprietary machine learning models that analyze intrinsic value against current market prices, quality ratings, ROIC, margins, and growth metrics. These picks emphasize companies trading below their estimated intrinsic values, offering potential for value investors. Selection prioritizes diversified exposure across utilities, power generation, and equipment providers, focusing on firms with strong 1Y returns, revenue trajectories, and balanced risk profiles from the Value Sense database.
Featured Stock Analysis
Stock #1: GE Vernova Inc. (GEV)
| Metric | Value |
|---|---|
| Market Cap | $198.1B |
| Quality Rating | 6.2 |
| Intrinsic Value | $217.2 |
| 1Y Return | 89.9% |
| Revenue | $38.1B |
| Free Cash Flow | ($325.0M) |
| Revenue Growth | 8.9% |
| FCF margin | (0.9%) |
| Gross margin | 19.8% |
| ROIC | 8.8% |
| Total Debt to Equity | 0.0% |
Investment Thesis
GE Vernova Inc. (GEV) stands out in the renewable energy space with a massive $198.1B market cap and a Quality rating of 6.2 from Value Sense analysis. The company's intrinsic value is estimated at $217.2, suggesting significant undervaluation relative to its current positioning. Despite a negative Free Cash Flow of $325.0M and FCF margin of 0.9%, GEV demonstrates solid fundamentals including $38.1B in revenue, 8.9% revenue growth, 19.8% gross margin, and impressive 8.8% ROIC. Zero Total Debt to Equity 0.0% provides a debt-free balance sheet, supporting long-term stability in wind and power generation equipment. The 89.9% 1Y Return underscores momentum in the sector.
This analysis reveals GEV as a leader in scalable renewable infrastructure, where high revenue scale and ROIC position it for margin expansion as global electrification accelerates.
Key Catalysts
- Strong 8.9% revenue growth fueling expansion in wind turbine and electrification solutions.
- Industry-leading 8.8% ROIC indicating efficient capital deployment.
- 89.9% 1Y Return reflecting market recognition of growth potential.
- Debt-free structure (0.0% Total Debt to Equity) enabling aggressive investments.
Risk Factors
- Negative $325.0M Free Cash Flow and 0.9% FCF margin signal cash burn from growth initiatives.
- Moderate Quality rating of 6.2 may limit short-term upside if execution falters.
Stock #2: Korea Electric Power Corporation (KEP)
| Metric | Value |
|---|---|
| Market Cap | $26.0B |
| Quality Rating | 7.0 |
| Intrinsic Value | $32.2 |
| 1Y Return | 175.0% |
| 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 (KEP) boasts a $26.0B market cap and top-tier Quality rating of 7.0, with an intrinsic value of $32.2 indicating undervaluation. Positive â©1,457.4B Free Cash Flow and 1.5% FCF margin contrast with peers, alongside massive â©97.3T revenue, 5.3% growth, 60.9% gross margin, and 6.3% ROIC. The extraordinary 175.0% 1Y Return highlights its appeal in stable utility operations with renewable integration. N/A Total Debt to Equity suggests manageable leverage in a regulated environment.
KEP's scale and cash generation make it a defensive play in renewables, balancing growth with profitability in Asia's power transition.
Key Catalysts
- Exceptional 175.0% 1Y Return driven by operational turnaround.
- High 60.9% gross margin supporting profitability.
- Positive â©1,457.4B Free Cash Flow for reinvestment.
- 7.0 Quality rating signaling strong fundamentals.
Risk Factors
- Currency exposure from â©-denominated metrics in global markets.
- N/A Total Debt to Equity requires monitoring for hidden leverage.
Stock #3: Brookfield Renewable Corporation (BEPC)
| Metric | Value |
|---|---|
| Market Cap | $7,570.4M |
| Quality Rating | 5.6 |
| Intrinsic Value | $412.0 |
| 1Y Return | 65.3% |
| Revenue | $4,142.5M |
| Free Cash Flow | ($801.3M) |
| Revenue Growth | (1.9%) |
| FCF margin | (19.3%) |
| Gross margin | 48.7% |
| ROIC | 1.3% |
| Total Debt to Equity | 139.5% |
Investment Thesis
Brookfield Renewable Corporation (BEPC), with a $7,570.4M market cap and 5.6 Quality rating, shows an intrinsic value of $412.0, pointing to deep undervaluation. Revenue stands at $4,142.5M with 1.9% growth, but 48.7% gross margin and 65.3% 1Y Return indicate recovery potential. Challenges include $801.3M Free Cash Flow and 19.3% FCF margin, offset by 1.3% ROIC and 139.5% Total Debt to Equity, typical for renewable asset owners.
BEPC offers exposure to hydroelectric and wind assets, where long-term contracts could drive FCF turnaround.
Key Catalysts
- High intrinsic value upside at $412.0.
- Solid 48.7% gross margin in renewable operations.
- 65.3% 1Y Return amid sector tailwinds.
- Diversified renewable portfolio for stable yields.
Risk Factors
- Negative $801.3M Free Cash Flow and 19.3% FCF margin.
- Elevated 139.5% Total Debt to Equity amplifying interest rate sensitivity.
Stock #4: Enlight Renewable Energy Ltd (ENLT)
| Metric | Value |
|---|---|
| Market Cap | $6,936.5M |
| Quality Rating | 6.7 |
| Intrinsic Value | $43.5 |
| 1Y Return | 250.8% |
| 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 (ENLT) features a $6,936.5M market cap, 6.7 Quality rating, and $43.5 intrinsic value. Explosive 250.8% 1Y Return pairs with 36.0% revenue growth on $487.2M revenue, 59.6% gross margin, and 5.2% ROIC. However, $966.4M Free Cash Flow and 198.4% FCF margin reflect heavy project investments, with 230.8% Total Debt to Equity.
ENLT's solar and wind focus positions it for high-growth in development-stage renewables.
Key Catalysts
- Stellar 250.8% 1Y Return and 36.0% revenue growth.
- Strong 59.6% gross margin.
- 6.7 Quality rating for execution.
- Expanding project pipeline.
Risk Factors
- Severe 198.4% FCF margin from capex.
- High 230.8% Total Debt to Equity.
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Stock #5: Algonquin Power & Utilities Corp. (AQN)
| Metric | Value |
|---|---|
| Market Cap | $4,996.2M |
| Quality Rating | 5.8 |
| Intrinsic Value | $8.4 |
| 1Y Return | 50.9% |
| 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. (AQN) has a $4,996.2M market cap, 5.8 Quality rating, and $8.4 intrinsic value. 50.9% 1Y Return on $2,387.7M revenue, despite 7.0% growth, $309.7M FCF, 13.0% margin, 73.9% gross margin, 2.5% ROIC, and N/A Debt to Equity.
AQN provides utility stability with renewable upside.
Key Catalysts
- 50.9% 1Y Return.
- Exceptional 73.9% gross margin.
- Regulated utility cash flows.
Risk Factors
- Declining 7.0% revenue growth.
- Negative 13.0% FCF margin.
Stock #6: TransAlta Corporation (TAC)
| Metric | Value |
|---|---|
| Market Cap | $3,059.8M |
| Quality Rating | 5.3 |
| Intrinsic Value | $7.3 |
| 1Y Return | 11.2% |
| 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 (TAC) offers $3,059.8M market cap, 5.3 Quality rating, $7.3 intrinsic value. Positive CA$351.0M FCF and 14.1% margin on CA$2,484.0M revenue shine, despite 11.0% growth, 53.5% gross margin, 1.5% ROIC, N/A Debt.
TAC balances thermal and renewables effectively.
Key Catalysts
- Positive 14.1% FCF margin.
- CA$351.0M Free Cash Flow.
- Transition to cleaner energy.
Risk Factors
- 11.0% revenue contraction.
- Low 1.5% ROIC.
Stock #7: Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR)
| Metric | Value |
|---|---|
| Market Cap | $2,382.1M |
| Quality Rating | 5.7 |
| Intrinsic Value | $13.9 |
| 1Y Return | -81.5% |
| 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
Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR) at $2,382.1M market cap, 5.7 Quality, $13.9 intrinsic value. Strong R$14.1B FCF, 33.2% margin, 12.0% growth on R$42.6B revenue, 45.9% gross, 4.6% ROIC, 68.9% Debt.
EBR leverages Brazil's hydro and wind resources.
Key Catalysts
- Robust 33.2% FCF margin.
- 12.0% revenue growth.
- R$14.1B Free Cash Flow.
Risk Factors
- -81.5% 1Y Return.
- Emerging market volatility.
Stock #8: Cadeler A/S (CDLR)
| Metric | Value |
|---|---|
| Market Cap | $2,092.4M |
| Quality Rating | 6.0 |
| Intrinsic Value | $27.4 |
| 1Y Return | 14.1% |
| 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 (CDLR) with $2,092.4M market cap, 6.0 Quality, $27.4 intrinsic value. Massive 198.9% revenue growth on €538.7M, 64.3% gross, 9.9% ROIC, despite €664.2M FCF, 123.3% margin, 99.1% Debt. 14.1% 1Y Return.
Offshore wind installation leader.
Key Catalysts
- Explosive 198.9% revenue growth.
- High 9.9% ROIC.
- Offshore wind demand.
Risk Factors
- 123.3% FCF margin.
- 99.1% Debt to Equity.
Stock #9: ReNew Energy Global Plc (RNW)
| Metric | Value |
|---|---|
| Market Cap | $1,958.3M |
| Quality Rating | 6.3 |
| Intrinsic Value | $12.9 |
| 1Y Return | -16.1% |
| 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 (RNW), $1,958.3M market cap, 6.3 Quality, $12.9 intrinsic. 46.4% revenue growth, â¹4,724.0M FCF, 3.8% margin on â¹122.8B revenue, 83.5% gross, 7.1% ROIC, high 540.2% Debt.
India-focused renewables growth story.
Key Catalysts
- 46.4% revenue growth.
- 83.5% gross margin.
- 7.1% ROIC.
Risk Factors
- -16.1% 1Y Return.
- Extreme 540.2% Debt.
Stock #10: Daqo New Energy Corp. (DQ)
| Metric | Value |
|---|---|
| Market Cap | $1,669.8M |
| Quality Rating | 6.0 |
| Intrinsic Value | $172.6 |
| 1Y Return | 35.1% |
| 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. (DQ), $1,669.8M market cap, 6.0 Quality, $172.6 intrinsic value. 35.1% 1Y Return despite 51.2% revenue drop on $639.7M, negative $263.1M FCF, 41.1% margin, 34.2% gross, 16.2% ROIC, 0.0% Debt.
Polysilicon supplier for solar.
Key Catalysts
- Huge $172.6 intrinsic value upside.
- Zero 0.0% Debt.
- Solar supply chain recovery.
Risk Factors
- Negative 34.2% gross margin.
- 16.2% ROIC.
Portfolio Diversification Insights
These 10 renewable energy stocks create a balanced portfolio with heavy weighting toward wind and power utilities (GEV, KEP, BEPC, ENLT leaders), complemented by global utilities (AQN, TAC, EBR), offshore/installation (CDLR), emerging markets (RNW), and solar supply (DQ). Sector allocation: 60% utilities/power gen, 30% renewables developers, 10% equipment. High performers like KEP (175% return) and ENLT 250.8% pair with stable cash generators (TAC, EBR), reducing volatility. Cross-correlations low due to geographic diversity (US, Korea, Canada, Israel, Brazil, India, China), enhancing resilience against regional policy shifts.
Market Timing & Entry Strategies
Consider entry during sector pullbacks from interest rate hikes or commodity volatility, targeting stocks with intrinsic value discounts over 20% like GEV and DQ. Dollar-cost average into high-quality names (KEP 7.0 rating) over 3-6 months. Monitor ROIC improvements and FCF inflection points for adds, using Value Sense screeners for real-time signals. Position sizing: 5-10% per stock, favoring positive FCF firms amid energy transition acceleration.
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FAQ Section
How were these stocks selected?
These top 10 renewable energy stock picks were curated from Value Sense's machine learning-driven watchlists, prioritizing intrinsic value upside, Quality ratings above 5.0, revenue growth, and sector diversity in wind and power.
What's the best stock from this list?
KEP leads with a 7.0 Quality rating, 175.0% 1Y return, and positive FCF, though GEV's scale and ENLT's 250.8% return offer compelling alternatives based on risk tolerance.
Should I buy all these stocks or diversify?
Diversification across these picks mitigates risks like high debt (RNW, ENLT) while capturing growth; allocate based on portfolio needs rather than full basket.
What are the biggest risks with these picks?
Common risks include negative FCF in growth names (GEV, BEPC), high debt (BEPC 139.5%, RNW 540.2%), and revenue volatility (DQ -51.2%), plus sector sensitivity to rates and subsidies.
When is the best time to invest in these stocks?
Optimal timing aligns with policy tailwinds or FCF turnarounds; use Value Sense intrinsic value tools to enter below fair value during market dips.