In this article, we will take a look at the 5 best climate change stocks to invest in. To see more such companies, go directly to 13 Best Climate Change Stocks To Invest In.
5. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 43
Israel-based SolarEdge Technologies, Inc. (NASDAQ:SEDG) makes photovoltaic arrays, energy generation monitoring software and battery energy storage products. It ranks 5th in our list of the best climate change stocks to buy according to hedge funds.
Recently, Citi named some of its top picks in the solar energy sector, and SolarEdge Technologies, Inc. (NASDAQ:SEDG) was one of them.
As of the end of the last quarter of 2022, 43 hedge funds tracked by Insider Monkey had stakes in SolarEdge Technologies, Inc. (NASDAQ:SEDG). The total worth of these stakes was $1.3 billion. The biggest stakeholder of SolarEdge Technologies, Inc. (NASDAQ:SEDG) was Richard Mashaal’s Rima Senvest Management which had a $215 million stake.
4. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 56
Ireland-based Linde plc (NYSE:LIN) is a chemical company. Linde plc (NYSE:LIN) has announced ambitious goals to cut carbon emissions and is also investing heavily on climate change solutions. In December 2022, Linde plc (NYSE:LIN) announced that CDP, a non-profit that helps companies disclose their environmental impact, awarded it a double ‘A’ for its approach to tackling both water security and climate change.
As of the end of the last quarter of 2022, 56 hedge funds tracked by Insider Monkey reported owning stakes in Linde plc (NYSE:LIN). The biggest stakeholder of Linde plc (NYSE:LIN) was Ian Simm’s Impax Asset Management which had a $945 million stake.
Madison Funds made the following comment about Linde plc (NYSE:LIN) in its fourth-quarter 2022 investor letter:
“Linde plc (NYSE:LIN) stock was strong during the fourth quarter following a solid third quarter. Linde remains well positioned with the passage of the Inflation Reduction Act and energy transition with carbon dioxide sequestration opportunities, gasification services, and various hydrogen projects. Linde and Schlumberger announced that they entered into a collaboration of carbon capture, utilization, and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide capture and sequestration. The collaboration will focus on hydrogen and ammonia production where carbon dioxide is a by-product. The International Energy Agency estimates that 6 Gigatons of carbon dioxide will need to be abated with CCUS in order to reach net zero by 2050. During the quarter, Linde also announced that it became a signatory to the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative. As a signatory, Linde has committed to aligning its strategy and activities with the UNGC’s Ten Principles across human rights, labor, environment, and anti-corruption.”
3. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 61
Florida-based NextEra Energy, Inc. (NYSE:NEE) is one of the leaders in the clean energy space. NextEra Energy, Inc. (NYSE:NEE) invests in solar, wind and other clean energy solutions. It operates over 16,000 MW of emissions-free wind energy.
NextEra Energy, Inc. (NYSE:NEE) is also a solid dividend-paying stock. In February, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.4675 per share, which was a 10% increase from prior dividend of $0.4250.
At the end of the fourth quarter of 2022, 61 hedge funds had stakes in NextEra Energy, Inc. (NYSE:NEE). The net value of these stakes was $2.2 billion. The biggest stakeholder of NextEra Energy, Inc. (NYSE:NEE) during this period was Phill Gross and Robert Atchinson’s Adage Capital Management.
2. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 63
Enphase Energy, Inc. (NASDAQ:ENPH) is one of the most popular climate change stocks among elite hedge funds and Wall Street analysts. Enphase Energy, Inc. (NASDAQ:ENPH) makes technologies and products for the solar and EV industry. Recently, Susquehanna Financial’s Biju Perincheril upgraded Enphase Energy, Inc. (NASDAQ:ENPH) to Positive from Neutral with a $275 price target. The investment firm likes Enphase Energy, Inc. (NASDAQ:ENPH) as it believes Enphase’s valuation has become attractive after a whopping 40% decline in December.
The analyst noted that Enphase Energy, Inc. (NASDAQ:ENPH)’s revenue more than doubled in fiscal year 2022, driven by growth in Europe.
At the end of the fourth quarter of 2022, 63 hedge funds tracked by Insider Monkey had stakes in Enphase Energy, Inc. (NASDAQ:ENPH).
ClearBridge Investments made the following comment about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q3 2022 investor letter:
“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.”
1. Deere & Company (NYSE:DE)
Number of Hedge Fund Holders: 63
Deere & Company (NYSE:DE), also known as John Deere, makes agricultural machinery, heavy equipment, forestry machinery, engines used in heavy equipment, and lawn care equipment. In October 2022, Deere & Company (NYSE:DE) announced that its emissions reduction targets have been validated by the Science Based Targets initiative (SBTi). Deere & Company (NYSE:DE) is also coming up with solutions for the climate change problem. ExactShot™, its new on-planter fertilizer system, optimizes fertilizer usage by registering when individual seeds are planted. It sprays the precise amount of starter fertilizer directly onto the seed as it goes into the soil. ExactShot can reduce the amount of starter fertilizer used by up to 60%.
In 2022, Deere & Company (NYSE:DE) achieved a 29% cumulative reduction of operational greenhouse gas emissions since 2017, surpassing its original goal of 15%.
As of the end of the fourth quarter of 2022, 63 hedge funds tracked by Insider Monkey reported owning stakes in Deere & Company (NYSE:DE).
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