The war in Iran has created several new winners in the oil and gas industry, and energy is now the only sector in the green for 2026. But as crude prices continue to soar, it underscores the need for energy independence and a diverse mix of sources to secure the grid. And while the traditional energy sector is getting the headlines, clean energy stocks have been quietly regaining strength. A few prominent companies recently reached key levels on their 50- and 200-day moving averages, which could signal excellent buying opportunities as we roll into Q2.
Demand and Efficiency Improvements Boost Clean Energy Companies Beyond the Need for Subsidies
When the One Big Beautiful Bill Act (OBBBA) was signed last July, the clean energy sector was expected to take a hit, especially companies in the solar industry. Residential solar credits were phased out after December 2025, and the commercial solar credits are set to expire at the end of 2026. But despite these regulatory headwinds, renewable energy stocks have thrived since President Trump signed the bill into law. The iShares Global Clean Energy ETF (NASDAQ: ICLN) is up more than 60% over the last 12 months, driven by a diverse portfolio of international and domestic stocks across multiple industries.
Why have clean energy stocks thrived despite the OBBBA cutting renewable tax breaks and favoring fossil fuels? The answer is multi-pronged, but investors have three primary reasons to point to:
- Solar technology has evolved beyond the need for subsidies thanks to improvements in battery storage, fast builds, and an easier permitting process. Despite having lower efficiency than other clean sources, solar will account for more than 50% of the expected capacity added in 2026.
- Nuclear and geothermal energy sources received more preferential treatment in the final version of the OBBBA. Nuclear energy projects remain eligible for tax credits until the original 2028 phaseout scheduled under the Inflation Reduction Act (IRA), and geothermal projects remain tax-advantaged through 2033.
- The energy demand from AI data centers remains insatiable, and reliable renewable sources have become one of the biggest beneficiaries of this need. The International Energy Agency (IEA) projects that data centers will account for 3% of global electricity consumption by 2030, roughly double current levels.
The renewable energy story is no longer about subsidizing a cleaner future; it's about structural demand for energy and technological improvements that deliver practical solutions to mass markets. (The cleaner future part is a nice added perk, though.)
As clean energy becomes more efficient and ubiquitous, investors will want a diverse selection of stocks for their portfolios. In addition to bullish signals on their moving averages, each of the three stocks chosen here operates in a different area of the industry.
Nextpower: High Upside Solar Play With $5 Billion Backlog
Solar tends to be a high-beta sector because its manufacturing process involves many highly volatile components. Nextpower Inc. (NASDAQ: NXT) develops systems that enable solar panels to track the sun’s path throughout the day, thereby avoiding the cost volatility associated with building solar panels or batteries. Management announced a backlog exceeding $5 billion during the company’s Q3 2026 earnings release in January, which also showed revenue growing more than 30% year-over-year (YOY).
NXT shares are up more than 20% year-to-date (YTD), and recently pulled back to the 50-day moving average (MA), which could set the stage for the next entry point. Despite the occasional bear trap, the 50-day MA has been a reliable support level since this rally began last April, and this recent pullback could be an opportunity.
Ormat Technologies: Steady Revenue Growth With Data Center Exposure
Ormat Technologies Inc. (NYSE: ORA) is a pure play geothermal stock currently riding tailwinds from tax credits and data center demand. Growth is slower than high-flying Nextpower (revenue up 12.5% YOY in the most recent quarter), but Ormat has reliable revenue streams from its long-term PPA deals with AI hyperscalers like Alphabet Inc. (NASDAQ: GOOGL).
The stock trades at more than 50 times earnings, which is a bit pricey for a company with 12.5% revenue growth. But the bullish momentum was hard to ignore in 2025, and shares have been consolidating following a three-month stint in range-bound territory. The 200-day moving average proved to be a strong support level, and a bullish crossover in the MACD indicators suggests upside momentum is about to resume.
GE Verona: Diversified Renewables Exposure With Explosive Upside
GE Verona (NYSE: GEV) might be the most promising of the three companies here, thanks to its diversified operations, strong data center revenue, and unrelenting support above its 50-day moving average. GE Verona actually had the slowest revenue growth at just 3.5% YOY in its Q4 2025 earnings report, but its size and backlog give the company highly visible and durable revenue, and management reiterated its belief with a dividend hike and new share buybacks.
The 50-day moving average has been rock-solid support for GEV shares during its 200% advance over the last 12 months, and it is once again bouncing off this level. The Relative Strength Index (RSI) has also been a reliable indicator during this run, sending a buy signal whenever it dips to 50, which it did again as it approached the 50-day MA. The bullish momentum is clearly still in place, and the company’s $45 billion in revenue guidance for 2026 suggests that fundamentals are likely to remain strong too.
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