10 Best Environmental Stocks to Buy

7. First Solar, Inc. (NASDAQ:FSLR)

 Number of Hedge Fund Holders: 59

First Solar, Inc. (NASDAQ:FSLR) manufactures solar panels, develops utility-scale solar projects, and provides ancillary services such as finance and end-of-life recycling. The company specializes in thin-film photovoltaic (PV) modules, which is an innovative energy-efficient alternative to traditional crystalline silicon (c-Si) PV panels.

Recent times have seen a surge in demands for solar energy driven by declining costs of PV systems with innovation and technological advancements. In 2023, the Solar Energy Market was valued at $140.32 billion which is projected to reach $310.73 billion by 2031, a significant compound annual growth rate (CAGR) of 10.17% during the forecast period. With First Solar, Inc. (NASDAQ:FSLR) recently announcing its stand against the use of deep-sea minerals, investors are likely to look upon the solar manufacturer stocks more favorably amidst the growing concerns over ESG in the US market. The company is also set to serve the U.S. distributed generation (DG) market soon, after announcing a partnership with Guided Path Solar.

First Solar, Inc. (NASDAQ:FSLR) announced plans to release its Q4 and full-year 2024 financial results on February 25, 2025. The company reported a significant 16.6% increase in Q3 net profit in 2024, touching a whopping $313 million, or $2.91 per share. This growth was driven by higher prices following new tariffs on foreign-made solar panels imposed by the Biden administration in May. The company has adjusted its full-year sales forecast to between $4.10 billion and $4.25 billion, against a previously expected $4.4 billion to $4.6 billion. This was in anticipation of market challenges such as a decline in residential installations and delays in utility-scale projects.

Analysts expect First Solar, Inc. (NASDAQ:FSLR) to post earnings of $4.69 per share in its forthcoming Earning Report, touching a year-on-year growth of 44.31%. The revenue is predicted to increase by a significant 26.91% to $1.47 billion compared to the previous year’s quarter performance. Analysts’ forecasts for the company’s stock price are varied. While some predict it could reach $202 by December 2025, others estimate higher targets, due to the company’s strong position in the renewable energy sector.

As an environmental stock, First Solar, Inc. (NASDAQ:FSLR)’s focus on developing and deploying solar technology plays a crucial role in advancing clean energy solutions. By investing in research and development, the company spurs innovation in the field of renewable energy, contributing to a sustainable future.