Monday, February 11, 2013

Alternative Energy Stock Outlook - Feb 2013: UNS , TOT , TAC , RDS.A , PIKE , ORA , HNP , GXP , EE , CVA , CNL , BP

Historically, the growth outlook of alternative energy companies has been directly related to the state of the economy and inversely related to the prices of petroleum products. While that relationship remains in place, other macroeconomic uncertainties are weighing on the sector’s fortunes.

According to the Energy Information Administration (EIA), the U.S. generated about 13% of its electricity from renewable energy sources in 2011. Globally, however, China leads the world in total electricity generation from renewable sources, helped by its increased allegiance in recent times to the alternative path. The dragon is followed closely by the U.S., Brazil and Canada.

The continuing financial strains in the Eurozone, slow recovery in the unemployment rate and capital goods orders, aftershocks of Hurricane Sandy and ongoing fiscal contraction continue to weigh on the recovery. This otherwise bleak picture is only partly offset by the steadily improving outlook for the U.S. housing sector and a stronger dollar. (more)

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