Next week’s solar eclipse and ongoing heatwaves are putting Europe’s power grid under pressure, with solar, nuclear, coal and hydropower all strained at the same time. That mix of stress and adaptation is often where opportunity appears. Some renewable energy stocks exposed to this news may stand to benefit from shifting demand and investment. This article walks through 3 such stocks from the screener and what this could mean for your portfolio.
The three stocks highlighted below are just a sample from this theme, and the full screen surfaced 13 more companies in non solar renewables with equally compelling stories that are not covered here. If you want to identify and analyze those additional opportunities alongside the ones in this article, head straight into the Renewable Energy Sector (Non-Solar Focus) screener.
Kongsberg Gruppen (OB:KOG)
Kongsberg Gruppen is a Norway based defense and technology company that supplies systems such as air defense, missiles, remote weapon stations and subsea technologies to governments and industrial customers worldwide. It reports NOK 2.1b from its Other segment, which focuses on digitalization for oil, gas and renewable energy, within a much larger group where segment adjustments total NOK 34.8b. The stock is a large cap with a market value of about NOK 273.2b.
Kongsberg Gruppen sits at the crossroads of rising defense demand and the push for more resilient non solar renewables. Recent wins in air defense, missiles and autonomous undersea platforms, alongside record backlog and strong earnings growth forecasts, show how deeply the company is plugged into long term security and energy themes that matter for Europe’s strained grid. At the same time, a high P/E multiple, reliance on government budgets and questions over how smoothly its large backlog turns into profitable cash flows give you real risks to weigh. The key question is whether current expectations fully reflect the upside from its wind and grid technologies in light of events like the eclipse driven solar shortfall and heat stressed power plants.
Kongsberg Gruppen’s surging defense backlog and exposure to wind and grid technologies could be masking what really matters next for investors. Get the full context in the analyst forecasts for Kongsberg Gruppen and see what the current forecasts might be missing.
Build your own grid resilience shortlist
Kongsberg Gruppen and the two other stocks in this article all surfaced from a single Simply Wall St screen, but the real edge comes when you set your own rules. Use our flexible Screener to mix valuation, growth, balance sheet and risk filters, or start with any of our curated Investing Ideas for ready made themes.
Nordex (XTRA:NDX1)
Nordex is a Hamburg based wind company that develops, manufactures and services large onshore turbines, mainly through its Projects and Service segments. Projects is the core of the business at about €7.2b of revenue, with Service contributing around €900 million of higher margin support work such as maintenance, repairs and upgrades. The stock is a mid large cap in the wind sector with a market value of roughly €9.2b.
Nordex gives you pure play exposure to onshore wind at a time when Europe is looking for non solar renewables to backstop the grid as eclipses cut solar output and heatwaves disrupt nuclear, coal and hydro. The company has been growing its order book, improving profitability and signing multi decade service contracts that can help smooth earnings. At the same time, its heavy tilt toward Europe, reliance on external borrowing and the capital intensity of turbine manufacturing all add risk if policy support, auctions or financing conditions shift. The key question for investors is how these strengths and vulnerabilities line up against the current valuation and what that might mean if wind build outs accelerate from here.
Nordex’s growing onshore wind order book and long term service work could be setting up a very different earnings profile compared with what the headline numbers suggest. Get the full story in the analysis report for Nordex
Andritz (WBAG:ANDR)
Andritz is an Austrian industrial group that supplies machinery, equipment and services for sectors such as pulp and paper, metals, hydropower and environmental technologies across multiple regions. It generates most of its revenue from Pulp & Paper at about €3.0b, followed by Hydro Power at roughly €1.8b, Metals at around €1.7b and Environment & Energy at about €1.5b. The stock is a large cap with a market value of roughly €8.0b.
Andritz puts you in the middle of Europe’s efforts to make the grid more resilient as solar output dips during the eclipse and heat-stressed nuclear, coal and hydro capacity is constrained. Its record order backlog of €12.9b and growing role in hydropower, grid stability and biomass systems indicate rising demand for firm, low-carbon power infrastructure. The Environment & Energy arm is involved in green hydrogen and carbon capture projects that are still at an early stage. Earnings growth has tracked steadily higher and the stock trades below Simply Wall St’s cash flow estimate. However, investors still need to weigh exposure to cyclical metals and pulp markets, an uneven dividend record and higher reliance on external funding.
Andritz’s €12.9b backlog and mix of hydropower, biomass and early stage green hydrogen work suggest the story is still evolving. The full narrative for Andritz could reveal how that growth intersects with its funding and dividend twists.
Seeking Alternatives Before Momentum Flies?
Fresh ideas do not stay under the radar for long. Spot stocks building quiet momentum before the crowd catches on and while prices still matter. Act now.
- Target reliable income streams by scanning companies in the 439 dividend fortresses that aim to combine strong cash generation with substantial payouts investors can track closely.
- Hunt for under the radar quality by reviewing the 255 high quality undervalued stocks that filters for solid fundamentals where expectations have not fully caught up yet.
- Position ahead of potential infrastructure shifts by checking the 36 power grid technology and infrastructure stocks that focuses on businesses tied to grid technology and backbone energy systems.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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