The One Energy Stock I'm Buying Now

BP Plc. (NYSE: BP) has spent many years leading the oil industry. But its recent announcement has shocked many. When reporting earnings earlier this week, the company revealed two things.

One, a substantial second-quarter loss, totaling $16.8 billion, slashing its dividend in half.

Two, the plan to pull back on oil and gas production and instead pour billions of dollars into clean energy as part of a significant change of plans and outlook.

The company explained further, saying it plans a "10-fold increase in annual low carbon investments to $5 billion by 2030" as it "tries to deliver on its promise of net zero emissions by 2050" and prepares for a world that uses much less oil due to efforts to fight climate change.

In fact, the company noted that it expects the demand to drop by 75% over the next 30 years if the increase in global temperatures is limited to 1.5 degrees Celsius. It's also predicting that by 2030, its production will fall at least 1 million barrels per day.

Despite the poor earnings performance, investors reacted positively to this green outlook. And BP shares rose by nearly 8%.

And while the chatter on the street is the big green initiative (and how investors can cash in on it), I'm personally not seeing eye to eye with those rushing to purchase some shares of BP right now. Because while I support the cause, I don't think this new outlook will be a profitable one.

So here's what to buy instead...

Where's the Money?: BLDP Is Miles Ahead of BP

Every time I see that a company has fired employees or cut its dividend, and the stock goes up, I find it interesting. Because to me, it really doesn't make any sense.

Back in the day, BP and Exxon Mobil Corp. (NYSE: XOM) used to be two of the most innovative companies globally. It seemed like every quarter, they delivered groundbreaking information, impressive results, and their growth seemed unstoppable. But it looks like they've lost their touch.

And while I have to commend BP for this greener outlook, an outlook that is needed no doubt - I don't think investors should be running to throw their money into this stock. And that's because I don't see BP being the industry leader in the alternative energy sector.

There's plenty of already established companies in that industry that are miles ahead of BP - and that's where I would be looking to put my money. For instance, I've got my eye on Ballard Power Systems Inc. (NASDAQ: BLDP). This is a stock we've been seeing on S.C.A.N. a lot in The 1450 Club - so, I definitely see a profit opportunity for you.

With that said, if you own BP, I think now is the time you've been waiting for. I would cut ties with this beaten-down oil giant and take profits from the influx of investors and ride this short-lived strength straight to the bank.

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