5 Best Climate Change Stocks To Buy According To Hedge Funds

In this article, we will be taking a look at the 5 best climate change stocks to buy according to hedge funds. To read our detailed analysis on climate change stocks and more, you can go directly to see the 12 Best Climate Change Stocks To Buy According To Hedge Funds.

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

Number of Hedge Fund Holders: 45

First Solar, Inc. (NASDAQ:FSLR) is an information technology company providing photovoltaic solar energy solutions. It is based in Tempe, Arizona.

Corinne Blanchard, an analyst at Deutsche Bank, initiated coverage of First Solar, Inc. (NASDAQ:FSLR) shares on November 14 with a Buy rating and a $180 price target.

First Solar, Inc. (NASDAQ:FSLR) is a leading company in the energy sector because of its exceptional solar modules. In the second quarter, the company’s net sales stood at $621 million, demonstrating a significant increase from the $254 million figure reported in the previous quarter.

There were 45 hedge funds long First Solar, Inc. (NASDAQ:FSLR) in the third quarter, with a total stake value of $703.7 million.

4. Sunrun Inc. (NASDAQ:RUN)

Number of Hedge Fund Holders: 47

Sunrun Inc. (NASDAQ:RUN) is an electrical components and equipment company. It develops and installs residential solar energy systems in the US.

Deutsche Bank’s Corinne Blanchard also initiated coverage of Sunrun Inc. (NASDAQ:RUN) on November 14 with a Buy rating and a $36 price target.

In the third quarter, Sunrun Inc. (NASDAQ:RUN) saw revenue growth of 44% year-over-year and its customers reached a record-high of 760,000. Its revenue stood at $631.9 million, beating estimates by $63.28 million. For the full year of 2022, the company’s solar energy capacity installed is set to rise by at least 25%.

Our hedge fund data shows 47 funds long Sunrun Inc. (NASDAQ:RUN) in the third quarter. Their total stake value was $785.6 million.

3. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 59

Enphase Energy, Inc. (NASDAQ:ENPH) is an information technology company. It designs and manufactures home energy solutions for the solar photovoltaic industry in the US and internationally.

Corinne Blanchard at Deutsche Bank also initiated coverage of Enphase Energy, Inc. (NASDAQ:ENPH) shares on November 14, with a Buy rating and a $330 price target.

Enphase Energy, Inc. (NASDAQ:ENPH) reported impressive third-quarter results showcasing 80% year-over-year revenue growth, with revenue from Europe alone growing by 70%. The company’s revenue came in at $634.7 million. The company also increased its margins to 42.9% despite rampant inflation.

In total, 59 hedge funds were long Enphase Energy, Inc. (NASDAQ:ENPH) in the third quarter, with a total stake value of $2.2 billion.

ClearBridge Investments, an investment management company, mentioned Enphase Energy, Inc. (NASDAQ:ENPH) in its third-quarter 2022 investor letter. Here’s what the firm said:

“In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.”

2. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 73

NextEra Energy, Inc. (NYSE:NEE) is an electric utility company. It generates and distributes electric power to retail and wholesale customers in North America. Its energy is generated through wind and solar facilities, alongside nuclear, coal, and natural gas facilities.

A Buy rating was reiterated on NextEra Energy, Inc. (NYSE:NEE) on October 24 by analyst Shahriar Pourreza, who also placed a $99 price target on the stock.

NextEra Energy, Inc. (NYSE:NEE) is the perfect pick for dividend growth investors looking to delve into the clean energy sector. The company has been growing its dividend for over 27 years, and its five-year dividend growth rate is 11.6%. The company’s PE ratio has remained at around 40 since 2019.

Out of 920 hedge funds tracked in the third quarter, 73 hedge funds were long NextEra Energy, Inc. (NYSE:NEE), with a total stake value of $2.1 billion.

ClearBridge Investments, an investment management company, mentioned NextEra Energy, Inc. (NYSE:NEE) in its third-quarter 2022 investor letter. Here’s what the firm said:

“NextEra Energy, Inc. (NYSE:NEE) is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.”

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

Tesla, Inc. (NASDAQ:TSLA) is an automobile manufacturer. It sells electric vehicles and energy generation and storage systems.

On November 23, Itay Michaeli at Citigroup upgraded Tesla, Inc. (NASDAQ:TSLA) from Sell to Neutral, with a $176 price target.

Tesla, Inc. (NASDAQ:TSLA) has a significant market capitalization and a positive EBIT margin of 16.66%. The company also shows significantly high revenue and EBIT growth rates. Its revenue growth rate over the last five years CAGR is 47.41%.

Tesla, Inc. (NASDAQ:TSLA) was found among the 13F holdings of 88 hedge funds in the third quarter, with a total stake value of $7.4 billion.

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