Geopolitical and macroeconomic headwinds have combined to slow down growth in the climate change sector over the past few months. However, governmental policy towards net zero emissions within the next two decades has served to balance out some capital concerns surrounding the climate change market. According to a report by consulting firm McKinsey, private investment in climate firms outpaced the broader market in 2022 even as the economy contracted, boosting climate stocks. The global climate change market has been one of the fastest growing sectors in the world economy over the past decade. US-based publication CCBJ reported that the climate industry in the US was worth $300 billion in 2013 and over $1.4 trillion globally. Research and advisory firm Verdantix projected that the climate change market will grow at an annual rate of more than 29% in the coming years. This will partly be due to increased government spending towards climate, as the Inflation Reduction Act allocated over $500 billion to mitigate climate change. Investors eager to profit from this climate boom should look into the climate change businesses of companies like General Electric Company (NYSE:GE), Tesla, Inc. (NASDAQ:TSLA), and First Solar, Inc. (NASDAQ:FSLR). Mark Widmar, the CEO of First Solar, Inc. (NASDAQ:FSLR), recently highlighted some of the future plans of his firm during the fourth quarter earnings call in late February, noting how the firm had been operating in the climate change market for more than twenty-five years, making it one of the oldest and experienced companies in the sector. The companies that offer products or services related to climate change were selected and ranked based on hedge fund sentiment. The analyst ratings of each stock are also discussed to provide readers with some context for their investment choices. The hedge fund sentiment around each stock was calculated using the data of around 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years. The 14 best climate change stocks to buy according to hedge funds are: Canadian Solar Inc. (NASDAQ:CSIQ), TPI Composites, Inc. (NASDAQ:TPIC), Brookfield Renewable Partners L.P. (NYSE:BEP), Denison Mines Corp. (NYSE:DNN), Plug Power Inc. (NASDAQ:PLUG), Clearway Energy, Inc. (NYSE:CWEN), Green Plains Inc. (NASDAQ:GPRE), SolarEdge Technologies, Inc. (NASDAQ:SEDG), Suncor Energy Inc. (NYSE:SU), and Vestas Wind Systems A/S (OTCMKTS:VWDRY).
In May, InvestorPlace published an article by Michael Que titled 'Unveiling the Hottest Stocks: Top 3 Picks for Your Portfolio in May'. The article discusses the top three hot stocks to buy in May. The first pick is Green Plains (GPRE), an agri-tech company specializing in biofuel production. GPRE is valued at $19.02 with a 12-month median price target of $30.50. The second pick is First Solar (FSLR), a manufacturer of photovoltaic solar energy solutions. FSLR's shares have risen 11.41% year-to-date, and analysts have a 12-month median price target of 19.84% for the stock. The third pick is Citigroup (C), a global financial services company. Analysts predict price targets for C to be between $80 and $46, with an average of $62. The article highlights the potential growth and profitability of the biofuel industry, the solar energy systems market, and the banking industry. It also mentions the recent moderation in U.S. inflation and the possibility of the Federal Reserve lowering interest rates. [09aae929]
For investors with a long-term mindset, there's never a wrong time to put your money to work on Wall Street. Three stocks to consider are Visa, GlaxoSmithKline, and PayPal. Visa is a leading payment processor with a commanding lead in credit card network purchase volume market share in the U.S. GlaxoSmithKline, despite facing litigation, has a strong drug portfolio and the financial resources to handle any challenges. PayPal, although its stock has declined, continues to experience growth in total payment volume and active accounts. These stocks offer value and growth potential for long-term investors.