Four Club holdings — including Meta Platforms (META) and Pioneer Natural Resources (PXD) — are among the 12 best-positioned stocks right now, investment bank Bernstein told clients Wednesday. We share the favorable outlook on Meta and Pioneer, but aren’t as high on the two other Club names Bernstein highlighted: Qualcomm (QCOM) and Devon Energy (DVN). Understanding Bernstein’s note: The list of 12 stocks were screened for rosy six-month outlooks, using both quantitative modeling and fundamental forecasts from the firm’s research analysts. Bernstein says that since 2004, stocks that are both rated outperform (buy) by its analysts and in the top quintile (or top 20%) of its proprietary quant model beat the S & P 500 by 6.1% on annualized basis. Those stocks are held in high regard because they also did better than those simply rated buy or in the top quintile of the quant model, according to Bernstein. A third characteristic shared by all 12 stock is not being a so-called “crowded trade,” as measured by Bernstein’s Crowding Model. Meta Platforms Bernstein’s take: Meta’s aggressive cost-cutting efforts are likely factored into the social media giant’s stock price in full, according to the firm. But investors may adopt an even more positive attitude toward Meta if the company is able to return to topline revenue growth in the coming months. Analysts expect that to happen due to general improvements in the advertising market and internal changes at Meta to overcome Apple ‘s (AAPL) 2021 privacy changes. META 1Y mountain Meta Platform’s 12-month stock performance. The Club’s take: Meta CEO Mark Zuckerberg has delivered on the expense-reduction strategy that investors including the Club sought, and that’s a big reason why the stock has soared nearly 70% already in 2023. We’re careful about chasing the stock after such a monster move. But big picture, shares should have more room to run and any pullbacks are buying opportunities. Meta rose 2% on Wednesday to just under $205 per share. Pioneer Natural Resources Bernstein’s take: Pioneer has “the simplest and most reliable” operating model within the energy sector, analysts wrote. The firm also championed Pioneer’s variable dividend policy, saying they expect the pure-play Midland Basin producer to continue returning a ton of free cash flow to shareholders over the next five years. Bernstein expects that capital return to equal roughly 40% of its current $47 billion market cap. PXD 1Y mountain Pioneer Natural Resources’ 12-month stock performance. The Club’s take: As we look to consolidate our energy holdings to three stocks from four, Pioneer isn’t going anywhere. A key reason is CEO Scott Sheffield and the operational excellence he’s demonstrated, which aligns with Bernstein’s fundamental outlook on the company. We added to our Pioneer position twice this month — most recently last week at roughly $185 per share, believing that the sell-off in oil stocks grew largely overdone. Pioneer shares rose 1% on Wednesday to roughly $200 each. Qualcomm Bernstein’s take: Wall Street has revised lower its Qualcomm estimates to capture continued inventory challenges in the smartphone market, and now the chipmaker’s shares present investors “with a compelling risk-reward” relative to industry peers, according to the firm. Analysts believe Qualcomm’s inventory glut is starting to improve, and note the stock trades at a sizable discount to the broader semiconductor industry: roughly 12 times forward earnings compared with 23 times for the PHLX Semiconductor Sector index. QCOM 1Y mountain Qualcomm’s stock performance over the past 12 months. The Club’s take: As of now, we’re looking to exit our position in Qualcomm if the stock trades up into the $130s range, which would be a solid move from the $117 level we upgraded the stock at earlier this month. In general, Nvidia (NVDA) and Advanced Micro Devices (AMD) provide us with higher-quality exposure to the chip industry. Seeing strength along with the rest of the chipmakers, Qualcomm rose more than 3.5% to roughly $126 per shre. Devon Energy Bernstein’s take: The firm sees Devon as the best “turnaround story” in the U.S. shale sector, noting that past performance has sometimes been “marred by shaky strategic decisions.” Analysts believe that such issues have been straightened out with a corporate ethos focused on returning capital to shareholders, similar to Pioneer. Devon, like PXD, rose Wednesday, adding roughly 2.5% to nearly $50 per share. DVN 1Y mountain Devon Energy’s 12-month stock performance. The Club’s take: We expect to strategically sell out of Devon into strength, refocusing our energy holdings into what we think are better opportunities. Simply put, we’ve determined we no longer need to own three different exploration and production (E & P) firms: Devon, the aforementioned Pioneer and natural-gas heavy Coterra Energy (CTRA). Devon’s most-recent quarterly results were disappointing and informed this conclusion. When we decide to exit Devon, we will free up some much needed space in the portfolio for other opportunities. (Jim Cramer’s Charitable Trust is long META, QCOM, NVDA, AMD, PXD, DVN, AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The logo of Meta Platforms is seen in Davos, Switzerland, May 22, 2022.
Arnd Wiegmann | Reuters
Four Club holdings — including Meta Platforms (META) and Pioneer Natural Resources (PXD) — are among the 12 best-positioned stocks right now, investment bank Bernstein told clients Wednesday.
Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links.More.
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):
FTC: We use income earning auto affiliate links.More.
The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.
What we know about the BYD Han L EV so far
We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.
BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.
The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.
BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.
To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).
BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.
At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).
Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.