Here's some stock market advice: Buy low, sell high.

This oft-repeated adage is sometimes fodder for jokes and memes, but it's great advice if you can pull it off.

One area of the stock market where you may be able to buy low is the renewable energy space, but you'll probably have to wait a while before you can sell high.

Related:

Two prominent renewable exchange-traded funds – the iShares Global Clean Energy ETF (ticker: ICLN) and the First Trust Nasdaq Clean Edge Green Energy Index Fund (QCLN) – are down 27% and 34% over the past year, respectively, as interest rates and inflation pressure the sector. That's in sharp contrast to the S&P 500's 31% gain.

The Federal Reserve's key interest rate is at its highest level in more than two decades, making green-energy infrastructure projects more expensive to finance. Meanwhile, inflation has made the raw materials and the components used for these projects more expensive.

Featured Brokers

Interactive Brokers

Account Minimum

$0

Fee

$0

Low commission rates start at $0 for U.S. listed stocks & ETFs*. Margin loan rates from 5.83% to 6.83%.

View Disclosure

Robinhood

Account Minimum

$0

Fee

$0

No commission fees to trade stocks, options or crypto, and no account minimums to start.

Yieldstreet

Account Minimum

$10,000

Fee

0% to 2.5%

Invest in private market. Evolve your portfolio beyond just the stock market today.

Still, the long-term outlook is bright as governments around the world push to decarbonize their economies in the face of climate change and the desire to reduce reliance on unfriendly states for energy. One of the most prominent drivers is the Inflation Reduction Act in the U.S.

"We see significant long-term momentum in the renewable energy sector, bolstered by the global movement toward electrification and the critical role of backbone technologies to support the transition," says Clay Bruning, an equity research analyst at Reynders, McVeigh Capital Management. "Innovations in infrastructure and battery technology are key to meeting the growing electricity demands of sectors, including the substantial and complex power needs of AI solutions."

Here's a look at some of the best renewable energy stocks to consider this year:

This stock is down 27%........

© U.S.News