In this article we discuss 5 companies that will benefit from global warming. If you want to read about the future growth catalysts for the renewable energy stocks and the industries that will thrive in the climate change environment, read our article 10 Companies That Will Benefit From Global Warming.
5. Solaredge Technologies Inc (NASDAQ: SEDG)
Israel-based Solaredge Technologies sells power optimizers, solar inverters and monitoring systems for photovoltaic arrays to increase energy output through module-level Maximum Power Point Tracking. The company offers a variety of products and services, including residential, commercial and large scale PV, energy storage and backup solutions, EV charging and UPS systems.
Ian Simm’s Impax Asset Management is one of the 31 hedge funds tracked by Insider Monkey that reported owning shares of Solaredge at the end of the third quarter. (Read: Is SEDG A Good Stock To Buy According to Hedge Funds?)
4. Pool Corporation (NASDAQ: POOL)
Pool Corporation is one of the 10 best companies that will benefit from global warming. As temperatures rise across the globe, the demand for swimming pools is expected to surge. Pool Corporation is a wholesale distributor of swimming pool supplies and related equipment. In October 2020, the company posted a 26.6% growth for its Q3 net sales, while adjusted EPS in the period jumped 47%. The company said it is experiencing a rise in residential pool products, driven by home-centric trends amid the coronavirus pandemic.
A total of 36 funds tracked by Insider Monkey held stakes in Pool Corporation entering the fourth quarter.
Here’s what Wasatch Core Growth Fund said about POOL stock in its Q3 2020 Investor Letter:
“Pool Corp. (POOL) saw its stock price increase as the wholesale distributor of swimming pools and related equipment and supplies benefited from rising demand precipitated by families increasingly favoring activities that can be enjoyed at home. The company also benefited from costsaving measures put in place at the start of the pandemic. We believe Pool Corp. is on a promising long-term growth trajectory and also has the potential to see more business in the short term from greater use of swimming pools by housing communities and individual households.”
3. First Solar, Inc. (NASDAQ: FSLR)
Arizona-based First Solar sells solar panels and operates utility-scale PV power plants. The company is known for its cadmium telluride (CdTe)-based photovoltaic (PV) modules, which produce electricity with a thin CdTe film on glass. In October 2020, First Solar shares rallied after the company said its sales jumped 70% in the third quarter. EPS in the quarter came in at $1.45, easily beating the Wall Street’s estimate of $0.63 per share. For 2020, the company expects to earn between $2.6 billion and $2.9 billion.
The smart money is turning bullish on First Solar. A total of 40 hedge funds tracked by Insider Monkey held positions in the company at the end of the third quarter, significantly up from 16 funds a quarter earlier.
2. Enphase Energy Inc (NASDAQ: ENPH)
California-based Enphase Energy is one of the largest solar companies in the U.S., with a market cap of about $22 billion. The company sells software-driven home energy solutions. The company has shipped about 20 million solar microinverters in North America, Europe and Australia.
Enphase shares rallied recently after Goldman Sachs upped the stock to Buy from Neutral with a $232 price target.
Overall, 42 hedge funds tracked by Insider Monkey were bullish on Enphase Energy at the end of the third quarter. The net value of the stakes these funds had in the company is $1.04 billion.
Read: Was The Smart Money Right About Crowding Into Enphase Energy Inc (ENPH)?
1. NextEra Energy Inc (NYSE: NEE)
Florida-based NextEra NextEra Energy, Inc is one of the largest green energy companies in the world. The company has tripled its wind energy capacity over the last 10 years. It operates over 14,100 MW of emissions-free wind energy, along with several solar and nuclear energy projects. The company is behind Florida Power & Light, which is the biggest producer of solar energy in Florida with 28 major solar power plants, having a capacity of about 2,000 megawatts of solar generation.
A total of 63 hedge funds tracked by Insider Monkey held long positions in NextEra Energy as of the end of the third quarter.
Please also see 10 Largest Wind Energy Companies and 5 Best Mid-Cap Stocks Billionaire Brian Higgins’ King Street Loves the Most.
