When I talk about MegaTrends, I’m referring to trends that are so pervasive that there is little that will stop them from growing over the next one or two decades.
What I do is look for the beneficiaries of these young or mature MegaTrends and find the leading stocks in those sectors to buy. That’s the purpose of my Trendsetter Strategy. It helps me find the best of the best.
As you can see from the graph above, as well as the CAGR (compounded annual growth rate), this is a powerful, long-term growth trend.
Now the direct winners will be the energy companies that dominate the global renewable energy sector. Even with the US tariffs in place, many of these global companies don’t rely on the US market for their growth.
For example, Spain’s Iberdrola (OTC:IBDRY) has operations throughout Europe, Mexico, Brazil, Japan, and Australia, as well as the US.
The same global exposure is true of Canada’s Brookfield Renewable Corp (NYSE:BEPC). It has utility-scale renewable energy businesses throughout the world.
Two US-based firms that stand out are NextEra Energy (NYSE:NEE) and GE Vernova (NYSE:GEV). NEE is a Florida-based utility that sells wholesale power generated from renewable sources. GEV is the renewable energy spinoff when General Electric split into three parts. It’s a leading wind turbine and water turbine maker, as well as other large-scale renewable equipment.
As far as corporations that have embraced renewable energy to power their operations, the US Environmental Protection Agency has a list of its Green Power Partnership Fortune 500 leaders, and it’s an impressive list.
Top of the list is one of our favorite tech picks, Microsoft (NASDAQ: MSFT). It’s followed by Alphabet (NASDAQ: GOOG) and Walmart (NYSE: WMT).
The list is impressive and surprising because of the deep commitment many of these businesses continue to show for renewables. These companies are committed because it’s saving them money and allowing them to grow, not because of any great love for renewables.
Regardless of what you hear from the headlines, renewables is growing for industry, as well as consumers, and this trend will go mega in coming years.
