In this article, we will look at the 5 Best Climate Change Stocks to Buy According to Analysts. Please visit the 8 Best Climate Change Stocks to Buy According to Analysts if you’d like to see an extended list and methodology behind it.
5. CECO Environmental Corp. (NASDAQ:CECO)
Potential Upside: 14.91%
Number of Hedge Fund Holders: 26
CECO Environmental Corp. (NASDAQ:CECO) is one of the best climate change stocks to buy according to analysts. The stock continues to receive a strong buy rating from analysts, as all of the 6 analyst ratings compiled by CNN assigned it a Buy rating. As of May 19, the stock has a median price target of $90, a 14.91% upside from the current price of $78.32.
On May 15, CECO Environmental, along with Thermon Group Holdings Inc., announced an election deadline for Thermon stockholders to elect a form of merger consideration, in line with the merger of the two companies. Thermon stockholders will have until May 22 to elect the form of merger consideration they wish to receive in the transaction.
Earlier in February, the two firms announced they had entered into a definitive agreement to combine in a stock-and-cash transaction valued at approximately $2.2 billion. CECO emphasized that the merger expands its leadership in industrial environmental and thermal solutions with the addition of Thermon’s established position in process heating, heat tracing, and temperature management.
In late April, Needham increased its price target on CECO Environmental to $90 from $80 while keeping a Buy rating on the stock following its positive first-quarter performance, according to a report by TheFly. The analyst expressed optimism for the upcoming merger with Thermon, noting that the company is entering a major transformation phase with “powerful head of steam”.
CECO Environmental Corp. (NASDAQ:CECO) is a leading environmentally focused, diversified industrial company, serving a broad landscape of industrial air, industrial water, and energy transition markets globally through its key business segments, namely, Engineered Systems and Industrial Process Solutions.
4. Nextpower Inc. (NASDAQ:NXT)
Potential Upside: 16.16%
Number of Hedge Fund Holders: 42
Nextpower Inc. (NASDAQ:NXT) is one of the best climate change stocks to buy according to analysts. Based on 25 analyst ratings compiled by CNN, 72% rated Nextpower Buy, while 24% rated it Hold. As of May 19, the stock has an average price target of $147.66, a 16.16% upside from its current price of $127.12.
On May 12, the company said it had entered into a definitive agreement with Zigor Corp. for the acquisition of complementary assets of the latter’s power conversion business as well as its U.S.-based subsidiary, Apex Power. Nextpower said the transaction, once completed, will expand its product portfolio and capabilities in utility-scale solar power conversion. Additionally, it will also support the company’s entry into battery energy storage and data center markets.
Nextpower said the acquisition includes modular, field-deployed inverter technology and experienced engineering talent. The company said the transaction has a consideration of approximately $80.5 million in cash, consisting of $46 million at closing and up to $34.5 million in potential earnouts. It added that the closing of the acquisition is subject to foreign direct investment (FDI) approval by the Spanish government and other customary conditions.
“In addition to the purchase consideration, Nextpower plans an incremental investment of approximately $50 million related to growth initiatives, including the acceleration of its entry into the power conversion market. These investments are expected to position Nextpower to capture a significant, durable growth opportunity,” the company added.
Nextpower Inc. (NASDAQ:NXT) designs, engineers, and delivers an advanced energy technology platform for solar power plants, innovating across structural, electrical, and digital domains. The company’s integrated solutions are designed to streamline project execution, increase energy yield and long-term reliability, and enhance customer ROI.
3. Constellation Energy Corporation (NASDAQ:CEG)
Potential Upside: 46.55%
Number of Hedge Fund Holders: 76
Constellation Energy Corporation (NASDAQ:CEG) is one of the best climate change stocks to buy, according to analysts. Based on 22 analyst ratings compiled by CNN, 86% rated Constellation Energy Buy, while 9% marked it Hold. As of May 19, the stock has a median price target of $382, a 46.55% increase from the current price of $260.67.
On May 14, Constellation Energy announced that it had entered a long-term agreement for the purchase of a minority equity interest in five operating RNG production facilities of Pine Creek RNG. The said facilities, which are located in the states of Washington, Utah, Iowa, and Illinois, currently produce approximately 1.5 million MMBtus of RNG per year. Under the agreement’s framework, the two companies are seeking to develop approximately 3.0 million MMBtus annually of additional RNG production.
On May 12, Mizuho increased its price target on Constellation Energy to $310 from $300 and maintained a Neutral rating on the stock following the release of the company’s first-quarter earnings report. Constellation earlier reported a higher GAAP net income of $4.49 per share for the first quarter of the year, up from $0.38 per share in the same quarter last year.
Constellation Energy Corporation (NASDAQ:CEG) is the largest private-sector power producer in the world and the nation’s largest producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind, and solar facilities, its fleet has the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation’s clean energy and delivering the around-the-clock reliability needed to power America’s growing economy.
2. Energy Recovery, Inc. (NASDAQ:ERII)
Potential Upside: 53.66%
Number of Hedge Fund Holders: 19
Energy Recovery, Inc. (NASDAQ:ERII) is one of the best climate change stocks to buy according to analysts. Based on six analyst ratings compiled by CNN, 33% marked it Buy, while 67% rated it Hold. The stock has an average price target of $13, a 53.66% upside from the current price of $8.46.
On May 13, Seaport Research analyst Jeff Campbell reduced the price target on Energy Recovery to $12 from $16 while maintaining a Buy rating on the shares. The analyst attributed the lowered price target to uncertainty about the timing of its desalination mega-project due to the effects of the war in Iran.
In a letter to shareholders earlier this month, Energy Recovery President and CEO David Moon addressed the impact of the conflict in the Middle East as he announced that the company is withdrawing its guidance for the year and acknowledged that project delays are likely to occur. He added:
“With significant business tied to the Middle East, the war in Iran severely limits our near-term visibility, and as such, we are temporarily withdrawing our 2026 guidance until further notice. Above all else, our priority remains the safety and well-being of our employees in the region, and we are actively supporting our customers as they navigate this uncertainty. We believe this is only a temporary headwind and have experience growing through many geopolitical challenges during our 30-year history as a company.”
Moon added that the company’s desalination projects in countries exposed to the war represented approximately 40% of its original 2026 desalination guidance at the midpoint. Despite these headwinds, he emphasized that the company expects to generate significant free cash flow in 2026.
Energy Recovery (NASDAQ:ERII) designs and manufactures reliable, high-performance solutions that generate cost savings and reduce energy consumption for industries such as desalination & wastewater.
1. VinFast Auto Ltd (NASDAQ:VFS)
Potential Upside: 69.97%
Number of Hedge Fund Holders: 5
VinFast Auto Ltd (NASDAQ:VFS) is one of the best climate change stocks to buy, according to analysts. On May 16, Bloomberg reported that the electric vehicle maker is planning to sell two of its factories in Vietnam to support it shed around $6.9 billion in debt and obligations, in a bid to accelerate its return to profitability.
According to the report, VinFast said it will essentially be debt-free, with only a small amount remaining after its restructuring. On May 12, the company announced that it would undergo a corporate restructuring that would separate its manufacturing assets held by the subsidiary VinFast Trading and Production JSC (VFTP) and transfer the unit to the buyer group led by Future Investment Research and Development JSC. The deal is valued at around $530 million.
Based on five analyst ratings compiled by CNN, 80% assigned a Buy rating to the stock. The average price target of the stock is $6.00, a 69.97% upside from the current price of $3.53.
VinFast Auto Ltd (NASDAQ:VFS) designs and manufactures electric vehicles. It offers electric scooters (e-scooters) and electric buses (e-buses). It provides an e-mobility ecosystem built around customers, community, and connectivity alongside new vehicle roll-out.
While we acknowledge the potential of VFS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VFS and that has 100x upside potential, check out our report about the cheapest AI stock.
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