Investor interest in green energy, and favorable government policies, have pushed some stocks to trade at relatively high valuations. Examples are Green energy stocks Sunrun (NASDAQ:RUN), ChargePoint (CHPT), and Sunnova Energy (NOVA), which we think look overvalued versus their peers and as such are best avoided now. Let’s discuss these names.Green energy solutions are experiencing rapid growth on the back of global efforts to reduce greenhouse gas emissions and limit the hazardous effects of climate change. In its efforts to achieve a carbon pollution-free electricity sector by 2035 and net-zero emissions economy-wide by 2050, the U.S. government is pushing the adoption of green energy.
According to a report by Report Ocean, the global renewable energy market was estimated at roughly $881.50 billion in 2020 and is expected to grow at an 8.2% CAGR between 2021 and 2027. However, high energy storage and infrastructure costs could hamper the green energy industry’s growth.
Sunrun Inc . (RUN), ChargePoint Holdings, Inc. (CHPT), and Sunnova Energy International Inc . (NYSE:NOVA) are three green energy stocks that look overvalued at the current price level. So, we think it could be wise to avoid them now.