Goldman picks 9 renewable energy stocks set to rebound after falling up to 40%

An aerial view of wind turbines in western Germany on May 8, 2020.
Ina Fassbender | AFP | Getty Images

Goldman Sachs believes it is time for investors to rotate back into renewable energy majors, describing current price levels as a "compelling entry point."

The investment bank said shares in the sector had dropped by an average of roughly 20% since an early January-peak, with some falling as much as 40%.

This move lower among Green Energy Majors (or GEMs) in recent weeks was most likely triggered by higher inflation expectations, anxiety over the prospect of rising interest rates and a rotation out of capital intensive, secular growth industries, the analysts said in a note published Sunday.

Nonetheless, Goldman analysts reaffirmed their confidence in the potential for GEMs and argued there was growing evidence to support their investment view.

Here's a list of buy-rated stocks they expect to outperform:

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