5 Best Green Stocks To Invest In 2024

In this article, we discuss 5 best green stocks to invest in 2024. If you want to read our detailed discussion on the clean energy industry, head over to 12 Best Green Stocks To Invest In 2024.

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

Number of Hedge Fund Holders: 47

First Solar, Inc. (NASDAQ:FSLR) is one of the best clean energy stocks. It offers photovoltaic solar energy solutions across the United States, Japan, France, Canada, India, Australia, and globally. The company is involved in designing, manufacturing, and selling cadmium telluride solar modules, which convert sunlight into electricity.

On December 27, First Solar, Inc. (NASDAQ:FSLR) announced that it had entered into two separate agreements with Fiserv to sell $500 million and up to $200 million, respectively, of its 2023 Inflation Reduction Act Advanced Manufacturing Production tax credits. According to the agreements, Fiserv will pay First Solar, Inc. (NASDAQ:FSLR) $0.96 for every $1 of tax credits during the first half of 2024.

According to Insider Monkey’s fourth quarter database, 47 hedge funds were bullish on First Solar, Inc. (NASDAQ:FSLR), compared to the preceding quarter when 49 funds had invested in the stock. Robert Pohly’s Samlyn Capital held a significant position in the company, with 1.79 million shares valued at $308.74 million.

Here is what White Brook Capital has to say about First Solar, Inc. (NASDAQ:FSLR) in its Q1 2021 investor letter:

“First Solar (FSLR) and Itron (ITRI), both of which I’ve written about in past In Focus sections were long-term positions that were sold as their prices exceeded price targets. Both are solid companies that remain on my watchlist, but the opportunity cost of not investing in other potential investments exceeded their potential mid-term returns.”

4. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 58

PG&E Corporation (NYSE:PCG), operating through its subsidiary Pacific Gas and Electric Company (NYSE:PCG-PA), provides electricity and natural gas to customers in northern and central California, USA. They produce electricity from different sources including nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. PG&E Corporation (NYSE:PCG)  is one of the best clean energy stocks.

On February 14, PG&E Corporation (NYSE:PCG) declared a $0.01 per share quarterly dividend, in-line with previous. The dividend is to be paid on April 15 to shareholders on record as of March 28.

According to Insider Monkey’s fourth quarter database, 58 hedge funds were bullish on PG&E Corporation (NYSE:PCG), an increase from 49 funds in the last quarter. Dan Loeb’s Third Point held the largest position in the company, with 57.86 million shares valued at $1.04 billion.

Third Point Management made the following comment about PG&E Corporation (NYSE:PCG) in its Q1 2023 investor letter:

“Our strategy is to preserve liquidity and buying power to take advantage of markets when they “break”. While overall indices remain elevated, we are finding more chances to provide liquidity across all three asset classes in which we invest – credit, structured credit, and equity – opportunities which have been key drivers of performance for the fund. Our portfolio is balanced across industries with a focus on event-driven names including companies involved in spin-offs, significant cost-cutting, or other types of under-appreciated business transformation. PG&E Corporation (NYSE:PCG), which is still our largest position, continues to deliver strong performance, down 50bps in the first quarter but up 6.2% for the year to date after the Fire Victims Trust sold another 60 million shares in a block trade.”

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

Number of Hedge Fund Holders: 65

NextEra Energy, Inc. (NYSE:NEE) produces, delivers, and sells electricity to both retail and wholesale customers across North America. Their electricity generation comes from a variety of sources, including wind, solar, nuclear, natural gas, and other forms of clean energy, placing it among the best clean energy stocks.

On February 16, NextEra Energy, Inc. (NYSE:NEE) declared a $0.515 per share quarterly dividend, a 10.2% increase from its previous dividend of $0.468. It is to be paid on March 15 to shareholders on record as of February 27.

According to Insider Monkey’s fourth quarter database, 65 hedge funds were bullish on NextEra Energy, Inc. (NYSE:NEE), up from 58 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors held the largest position in the company, with 3.9 million shares worth $237.21 million.

ClearBridge All Cap Value Strategy made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2023 investor letter:

“Many businesses are threatened by a higher cost of capital, but one where reality has set in, and which also touches many other growth areas of the market, is the utility company NextEra Energy, Inc. (NYSE:NEE). Over the past few years, the company developed into a growth darling thanks to its strong track record in renewable energy development and tailwinds from the global energy transition and incentives in the Inflation Reduction Act. The problem for NextEra, and the transition broadly, is that this transformation is immensely capital intensive and many renewables projects offer lower returns on that capital. This requires high capital expenditures – often resulting in negative free cash flow – to meet the growth and financing needs of companies like NextEra. To help, the company leaned on financial engineering by using a publicly traded limited partnership called NextEra Energy Partners, providing further capacity for its parent to continue its development plans. NEP used layers of its own financial engineering to fund its own negative free cash flow and a large, growing dividend yield that we believe it could not sustain organically. Ultimately, the higher cost of debt from rising rates led NEP to lower its own growth ambitions, driving concerns about whether NextEra can execute on its extensive backlog. As a result, the stock has declined by approximately 30% year to date.”

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 82

Tesla, Inc. (NASDAQ:TSLA) is a global company that engages in the design, development, manufacturing, leasing, and sale of electric vehicles, as well as energy generation and storage systems. It ranks 2nd on our list of the best clean energy stocks. Elon Musk’s disclosure of a 20.5% stake in Tesla, Inc. (NASDAQ:TSLA) as of December 31, with a reported value of over $120 billion, led to a gain in post-market trading on February 14. This stake surpasses the combined market caps of General Motors and Ford Motor. Musk’s ownership had decreased to around 13% earlier in 2023. He aims for a 25% voting position in Tesla to influence AI-related business decisions, but it’s uncertain how many shares he currently holds or if he plans to exercise options to reach the 20.5% stake.

According to Insider Monkey’s fourth quarter database, 82 hedge funds were long Tesla, Inc. (NASDAQ:TSLA), compared to 81 funds in the earlier quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 4.05 million shares worth $1 billion.

1. General Electric Company (NYSE:GE)

Number of Hedge Fund Holders: 92

General Electric Company (NYSE:GE) operates as a high-tech industrial firm across Europe, China, Asia, the Americas, the Middle East, and Africa. The company offers a range of products and services including gas and steam turbines, complete balance of plant solutions, upgrades, and related services. The company also provides integrated solutions for customers by combining onshore and offshore wind, blade manufacturing, grid solutions, hydro, storage, hybrid renewables, and digital services. General Electric Company (NYSE:GE) is one of the best clean energy stocks to buy. 

On January 23, General Electric Company (NYSE:GE) reported a Q4 non-GAAP EPS of $1.03 and a revenue of $19.4 billion, outperforming Wall Street estimates by $0.13 and $1.85 billion, respectively.

According to Insider Monkey’s fourth quarter database, 92 hedge funds were bullish on General Electric Company (NYSE:GE), an increase from 76 funds in the last quarter. Chris Hohn’s TCI Fund Management is the largest position holder in the company, with 41.65 million shares worth $5.32 billion.

Longleaf Partners Fund stated the following regarding General Electric Company (NYSE:GE) in its fourth quarter 2023 investor letter:

“General Electric Company (NYSE:GE) – Industrial conglomerate General Electric (GE) was the top performer for the year. We exited this multi-year investment as its price went above our appraisal. In 1Q23, GE spun out GE Healthcare, which we sold as it traded at our value. The share price continued its strong performance throughout the spring and summer, and we ultimately sold the position in the third quarter when we no longer saw a margin of safety for the business. CEO Larry Culp was a great partner who created significant value for shareholders by reducing leverage, cutting costs, streamlining operations, improving company culture and simplifying the structure with plans to split the company into three businesses. We hope to have the opportunity to partner with him again in the future.”

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