Hannon Armstrong Profiting From The New Economy

07/11/19 04:28:50 PM

by Matt Blackman

In my never-ending search for companies that will prosper in the new renewable energy and technology economy, I came across this momentum stock. And it looks to be breaking out to new all-time highs on above average volume again.

Security: HASI
Position: N/A

Hannon Armstrong "is proud to be the first U.S. public company solely dedicated to investments that reduce carbon emissions or increase resilience to climate change" by investing in "leading companies in the energy efficiency, renewable energy and other sustainable infrastructure markets," according to the company website. It has $2 billion in assets under management with a stated goal to "own a diversified portfolio that generates long-term, predictable cash flows from proven technologies."

Fundamentally, the company looks strong with earnings accelerating strongly through the last four quarters and up an impressive 150% in the last year. It also pays a respectable dividend of 33.5 cents which works out to forward dividend yield of 9.7%.

Figure 1. Daily chart of Hannon Armstrong (HASI) showing a 60% price rise since March 2018.

Graphic provided by: Freestockcharts.com.

Finding stocks in this market that combine both strong fundamental and technical strength has been tough so it was a pleasant surprise to see this one pop up on my scan screen. On the last trading day of June, HASI broke up through overhead resistance at $27.90 on a small V-pattern, which is a momentum buy signal. This move will be confirmed if support holds at this level and the stock moves up on strong volume.

Although the company only has five years of stock history making any cyclical conclusions highly speculative at best, HASI has shown strong seasonal performance between the first week in February and mid-July each year.

Figure 2. Seasonal chart of HASI showing strength from early February into July each year.

Graphic provided by: EquityClock.com.

Depending on which estimate you read, there is forecasted to be $10 trillion dollars or more shifting into the new economy as companies vie to compete in new technologies to power nations in the future with better, more efficient systems. And Hannon Armstrong looks to be doing a good job of finding these winners!

Suggested Reading:

https://www.hannonarmstrong.com/

Matt Blackman

Matt Blackman is a full-time technical and financial writer and trader. He produces corporate and financial newsletters, and assists clients in getting published in the mainstream media. Matt has earned the Chartered Market Technician (CMT) designation. Follow Matt on Twitter at www.twitter.com/RatioTrade

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Hannon Armstrong Profiting From The New Economy

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