RJ Scaringe's Rivian Leads: 5 Renewable Stocks That Beat S&P by 30%

Clean energy stocks surged 46% in 2025 versus S&P 500’s 16%. Peter Krull, managing $150M at Earth Equity Advisors, picks five 2026 winners: RJ Scaringe’s Rivian, First Solar, MYR Group, Hannon Armstrong, and Recursion Pharma.

Clean Energy Stocks Defy Trump Administration Headwinds

Despite policy shifts favoring fossil fuels from the White House in 2025, the clean energy sector demonstrated impressive resilience. Solar and other renewable stocks weathered uncertainty caused by changes in energy policy under Donald Trump’s administration, yet still delivered strong results that far outpaced traditional market benchmarks.

The S&P Global Clean Energy Transition index’s 46% climb versus the S&P 500’s 16% gain represents nearly 30 percentage points of outperformance. This gap is extraordinary, especially considering the challenging policy environment for renewables throughout the year. The performance demonstrates that market fundamentals—declining renewable costs, growing electricity demand, and global climate commitments—outweigh political headwinds.

Peter Krull, formerly CEO and now director at Earth Equity Advisors—a sustainable investment firm managing over $150 million—believes this trend of outperformance can persist. As 2026 begins, he predicts select clean energy stocks will continue rising, even amid ongoing policy uncertainty. His firm specializes in sustainable and socially responsible investing, providing expertise in identifying renewable companies with strong growth trajectories.

Krull expects the ongoing shift toward clean energy to keep transforming industries like infrastructure and transportation in 2026, fueling a new era of growth for companies driving this industrial evolution. “I remain optimistic about renewable energy for both the near and long term,” Krull told Business Insider. “The global response to climate change is accelerating the adoption of cleaner energy, transportation, and building solutions.”

The Five Clean Energy Stocks For 2026

1. MYR Group (MYRG): Electrical Infrastructure Play

2025 Performance: +53%

MYR Group, a key player in electrical infrastructure, may not be widely recognized outside its field, but Krull considers it a strategic investment in a vital sector. After a robust year delivering 53% returns, he expects the company to benefit further in 2026 as the AI revolution drives up electricity demand.

“With the dual forces of clean energy expansion and AI growth, efficient electricity transmission is crucial,” Krull explained. “MYR specializes in designing and constructing transmission lines to meet rising energy needs. I foresee sustained growth in their services for at least the next decade.”

The AI boom creates unprecedented electricity demand as data centers proliferate. Training large language models and running AI inference require massive power consumption. MYR Group positions perfectly at this intersection of clean energy and AI infrastructure, building the transmission lines delivering renewable power to hungry data centers.

2. First Solar (FSLR): Solar Manufacturing Leader

2025 Performance: +43%

First Solar stands out as a leader in solar technology, a crucial segment of the clean energy landscape. The company enjoyed a strong 2025 with 43% gains, and Krull believes its growth trajectory is just beginning as it prepares for further expansion in 2026.

“First Solar is dedicated to innovation in solar manufacturing, focusing on cleaner production processes and higher cell efficiency,” Krull said. “They have a full order backlog through 2026, indicating robust demand.” This order backlog provides revenue visibility and demonstrates strong market demand for First Solar’s products despite policy uncertainty.

First Solar’s competitive advantage stems from its thin-film photovoltaic technology, which differs from traditional silicon-based panels. This technology offers better performance in high temperatures and low-light conditions while using more sustainable manufacturing processes with lower carbon footprints.

3. Hannon Armstrong Sustainable Infrastructure (HSAI): Renewable Financing

2025 Performance: +13%

Hannon Armstrong Sustainable Infrastructure focuses on investing in companies that develop sustainable infrastructure, particularly in the solar and wind sectors. While its 13% gain lagged other picks, Krull sees this as a promising area that will benefit from growing demand for renewables.

“As we expand our renewable energy systems, firms like Hannon Armstrong will play a crucial role in providing the necessary financing,” he predicted. The company operates as a specialty finance company providing debt and equity capital to renewable energy projects that might struggle accessing traditional financing.

Hannon Armstrong’s business model benefits from rising interest rates that compressed valuations in 2024-2025, creating attractive entry points. As the Federal Reserve potentially cuts rates in 2026, the company’s existing high-yield portfolio becomes more valuable while new investment opportunities emerge.

4. Rivian Automotive (RIVN): RJ Scaringe’s EV Vision

2025 Performance: +18%

Rivian, an electric vehicle manufacturer led by CEO RJ Scaringe, bounced back in 2025 with 18% gains after a period of volatility. Krull expects Rivian to strengthen further in 2026, even as the EV sector faces headwinds from reduced federal support and increased competition.

He believes Rivian is well-positioned to serve a market segment that Tesla has largely overlooked. “The upcoming R3 models will target the more affordable EV market, which Tesla hasn’t prioritized,” Krull noted. “Rivian’s CEO, RJ Scaringe, has a deep understanding of the importance of integrated systems in electric vehicles.”

RJ Scaringe’s engineering background sets Rivian apart from competitors. He founded the company in 2009 after earning a PhD in mechanical engineering from MIT, bringing technical depth unusual among automotive CEOs. RJ Scaringe’s vision emphasizes adventure-focused vehicles with genuine off-road capability combined with cutting-edge EV technology.

Rivian’s differentiation strategy targets outdoor enthusiasts and families willing to pay premium prices for capability and quality. While Tesla dominates mass-market and luxury sedans, RJ Scaringe positioned Rivian in the truck and SUV segments where brand loyalty runs deep and customers value ruggedness. The R1T electric truck and R1S SUV have earned critical acclaim for performance and design.

The upcoming R3 models represent RJ Scaringe’s strategic move downmarket. Starting at projected prices around $45,000, these vehicles will compete directly with mainstream SUVs rather than luxury alternatives. This expansion could multiply Rivian’s addressable market, transforming it from niche luxury brand into volume manufacturer.

RJ Scaringe’s Rivian Key Advantages

Market Differentiation: Targets adventure/outdoor segment Tesla largely ignores

Technical Leadership: RJ Scaringe’s MIT PhD and engineering expertise drive innovation

Vertical Integration: In-house development of motors, batteries, and software

R3 Expansion: Affordable $45K models targeting mass market in 2026

5. Recursion Pharmaceuticals (RXRX): AI-Driven Drug Discovery

2025 Performance: -44%

Although not a pure clean energy company, Recursion Pharmaceuticals is committed to sustainability in its operations. Despite posting the worst 2025 performance among Krull’s picks with 44% losses, he remains very optimistic about its prospects, highlighting the transformative potential of AI in biotechnology and drug development.

Recursion has partnered with Nvidia to build a supercomputer for analyzing new drug possibilities. Their advanced system could significantly accelerate drug discovery and cut development costs by half. This AI-driven approach promises to revolutionize pharmaceutical development, reducing the typical 10-15 year timeline and multi-billion dollar costs.

While Krull acknowledges that Recursion carries more risk than his other picks given its negative 2025 returns and speculative business model, he still sees substantial upside potential. The company’s AI platform has already identified multiple drug candidates entering clinical trials, with successful approvals potentially triggering explosive valuation growth.

Why These Stocks Can Outperform In 2026

Krull’s picks share common characteristics positioning them for continued outperformance despite challenging political environments. Each company operates in sectors experiencing structural growth independent of short-term policy shifts—electricity infrastructure, solar manufacturing, renewable financing, electric vehicles, and AI-driven biotech all benefit from long-term trends transcending individual administrations.

The AI revolution creates particularly strong tailwinds. MYR Group benefits from AI’s massive electricity requirements, Recursion leverages AI for drug discovery, and even Rivian increasingly incorporates AI into autonomous driving features. This AI integration provides growth catalysts beyond pure clean energy narratives.

Global climate commitments ensure continued renewable adoption regardless of U.S. policy. The European Union, China, and other major economies maintain aggressive decarbonization targets, creating sustained demand for technologies these companies provide. U.S. policy uncertainty creates volatility but doesn’t eliminate underlying growth drivers.

Valuation opportunities emerged from 2024-2025 market corrections. Many clean energy stocks traded at depressed valuations reflecting political uncertainty rather than business fundamentals. As these companies demonstrate continued growth despite headwinds, valuations should expand recognizing their resilience and structural advantages.

Investment Risks And Considerations

Clean energy stocks carry sector-specific risks investors must acknowledge. Policy volatility remains elevated under administrations potentially hostile to renewables. Subsidy reductions, regulatory rollbacks, or fossil fuel favoritism could pressure margins and slow adoption rates.

Interest rate sensitivity affects clean energy companies disproportionately, as many require substantial capital expenditures financed through debt. If the Federal Reserve maintains higher rates longer than expected, financing costs could constrain growth and compress valuations. Hannon Armstrong’s financing model faces particular sensitivity to rate environments.

Competition intensifies across all clean energy segments. Chinese manufacturers dominate solar panel production with cost advantages that pressure companies like First Solar. The EV market sees new entrants constantly, challenging RJ Scaringe’s Rivian to maintain differentiation as competition intensifies. Execution risks loom large—Rivian must successfully launch R3 models on schedule and budget to justify its valuation.

Recursion Pharmaceuticals carries highest risk given its speculative drug discovery model and negative 2025 returns. Clinical trial failures could trigger substantial valuation declines, while successful drug approvals could multiply the stock price. This binary outcome profile makes it suitable only for risk-tolerant investors.

FAQ

Who is RJ Scaringe?

RJ Scaringe is Rivian Automotive’s founder and CEO, holding a PhD in mechanical engineering from MIT. He founded Rivian in 2009 with a vision to create adventure-focused electric vehicles combining off-road capability with cutting-edge EV technology.

Why did clean energy stocks outperform in 2025 despite Trump policies?

Structural factors like declining renewable costs, growing electricity demand from AI, and global climate commitments outweighed U.S. policy headwinds. The S&P Global Clean Energy Transition index gained 46% versus S&P 500’s 16%.

Which stock had the best 2025 performance?

MYR Group (MYRG) led with 53% gains, benefiting from electricity infrastructure demand driven by both clean energy expansion and AI data center growth.

Why include Recursion Pharmaceuticals in clean energy picks?

While not pure clean energy, Recursion commits to sustainable operations and represents AI-driven transformation similar to other picks. Its Nvidia-partnered supercomputer for drug discovery offers high-risk, high-reward potential.

What is Rivian’s R3 strategy?

RJ Scaringe is launching R3 models at projected $45,000 price points, targeting the affordable EV market Tesla hasn’t prioritized. This downmarket expansion could multiply Rivian’s addressable market substantially.

Should I buy all five stocks?

Diversification across these five provides exposure to different clean energy sub-sectors while spreading risk. However, individual risk tolerance and portfolio goals should guide allocation decisions. Consult financial advisors before investing.