In this article, we discuss the 5 companies that will benefit from the climate problem. If you want to read our detailed analysis of these stocks, go directly to Companies That Will Benefit From Climate Change: 10 Stocks to Watch.
5. Suncor Energy Inc. (NYSE:SU)
Number of Hedge Fund Holders: 32
Suncor Energy Inc. (NYSE:SU) is a Canada-based integrated energy firm. Even though the firm is primarily known for oil-related businesses, it also has several wind farms. These farms are a growing source of revenue for the company and are spurring further investments into clean energy sources.
Suncor Energy Inc. (NYSE:SU) has an impressive dividend history and recently declared a quarterly dividend of C$0.42 per share, an increase of 100% from the previous dividend of C$0.21 per share.
At the end of the third quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Suncor Energy Inc. (NYSE:SU), the same as in the previous quarter worth $1.1 billion.
4. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 33
SolarEdge Technologies, Inc. (NASDAQ:SEDG) markets semiconductor equipment for the solar industry. The stock has returned over 34% to investors over the past few months amid the successful passage of the Infrastructure Plan that has put aside billions to incentivize solar cell manufacturing in the US.
Wells Fargo analyst Michael Blum recently initiated coverage of SolarEdge Technologies, Inc. (NASDAQ:SEDG) stock with an Overweight rating and a price target of $441, noting the firm would benefit from long-term tailwinds in the solar market.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in SolarEdge Technologies, Inc. (NASDAQ:SEDG) with 750,069 shares worth more than $198 million.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and SolarEdge Technologies, Inc. (NASDAQ:SEDG) was one of them. Here is what the fund said:
“Our sustainability orientation has led us to favor renewable energy providers such as SolarEdge over traditional fossil fuel energy companies. Renewables stocks moved up very strongly over the last several quarters on optimism about huge green stimulus plans in Europe and the U.S. so we took profits and sold SolarEdge Technologies as valuations became demanding.”
3. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 53
NextEra Energy, Inc. (NYSE:NEE) is an electrical utility company based in Florida. The company has been stepping up investments in clean energy sources in recent weeks, announcing on November 18 that it had exercised options to purchase a portfolio of wind and solar assets for $885 million.
NextEra Energy, Inc. (NYSE:NEE) posted earnings for the third fiscal quarter in late October, reporting earnings per share of $0.75, beating estimates by $0.04. The revenue over the period was $4.3 billion, down 8% year-on-year.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in NextEra Energy, Inc. (NYSE:NEE) with 14.5 million shares worth more than $1.1 billion.
2. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 53
General Electric Company (NYSE:GE) is a high-tech industrial firm. It recently announced that it will split up into three firms focused on aviation, energy, and healthcare respectively. The energy division of the firm, heavily invested in alternative energy, will benefit from climate concerns as spending on alternative power sources increases.
Morgan Stanley analyst Joshua Pokrzywinski recently resumed coverage of General Electric Company (NYSE:GE) stock with an Overweight rating and a price target of $125, backing the firm to show “more promise on most fronts” heading into 2022.
At the end of the third quarter of 2021, 53 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in General Electric Company (NYSE:GE).
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and General Electric Company (NYSE:GE) was one of them. Here is what the fund said:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
1. Green Plains Inc. (NASDAQ:GPRE)
Number of Hedge Fund Holders: 29
Green Plains Inc. (NASDAQ:GPRE) is a diversified energy company. It is one of the top players in the biofuel market, which has been hit in recent months after proposed cuts to biofuel blending, but the long-term outlook remains strong as climate change ushers in an era of alternative and cleaner source of power.
Green Plains Inc. (NASDAQ:GPRE) posted earnings results for the third quarter on November 4, reporting a revenue of $746 million, up more than 76% compared to the revenue over the same period last year and beating estimates by $71 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Rubric Capital Management is a leading shareholder in Green Plains Inc. (NASDAQ:GPRE) with 1.3 million shares worth more than $43 million.
You can also take a peek at 15 Dividend Stocks People Buy for Early Retirement and 10 Stocks to Buy and Hold for Long Term According to Warren Buffett.
