Here's How Clean Energy Stocks Are Faring This Quarter

We are deep into the earnings season with more than half of S&P 500 companies having returned their Q3 2022 scorecards. According to FactSet Earnings Insights, the Energy sector is reporting the highest earnings growth of any market sector at 134%. All five sub-industries in the Energy sector are reporting year-over-year earnings growth for the third-quarter, with Oil & Gas Refining & Marketing (269%), Integrated Oil & Gas (140%), Oil & Gas Exploration & Production (105%), and Oil & Gas Equipment & Services (91%) reporting the highest earnings growth.

But the clean energy sector is proving to be no laggard, either. Sweeping new federal legislation has pumped new energy into the renewable energy and the solar sector in particular. It’s just over two months since the United States Congress passed the Inflation Reduction Act, hailed as the most important climate legislation in United States history. A major goal of IRA--the largest federal government spending increase on alternative energy in U.S. history--is to strengthen energy independence, reduce dependence on Chinese imports, and reinvigorate the industrial sector.