5 Best Environmental Stocks to Buy Now

3. Enphase Energy, Inc. (NASDAQ:ENPH)

Number of Hedge Fund Holders: 59

Enphase Energy, Inc. (NASDAQ:ENPH) is a leading provider of solar microinverter systems, which are used to convert solar energy into AC power. With the global push for renewable energy, Enphase Energy, Inc. (NASDAQ:ENPH) is well-positioned to benefit from the growing solar energy market and is one of the best environmental stocks to buy now. The company is profitable and has abundant cash resources to fund R&D and explore strategic M&A. According to the company’s balance sheet, Enphase Energy, Inc. (NASDAQ:ENPH) has free cash flows of $545 million and a trailing twelve-month operating margin of 17.61%.

On October 25, Enphase Energy, Inc. (NASDAQ:ENPH) posted market-beating earnings for the fiscal third quarter of 2022. The company reported an EPS of $1.25 and outperformed estimates by $0.16. The company’s revenue for the quarter amounted to $634.7 million, up 80.56% year over year and ahead of Wall Street expectations by 18.87 million.

Wall Street is bullish on Enphase Energy, Inc. (NASDAQ:ENPH). On November 14, Deutsche Bank analyst Corinne Blanchard took coverage of Enphase Energy, Inc. (NASDAQ:ENPH) with a Buy rating and a $330 price target.

At the end of the third quarter of 2022, Enphase Energy, Inc. (NASDAQ:ENPH) was a part of 59 hedge funds’ portfolios that held collective stakes of $2.20 billion in the company. This is compared to 53 hedge funds in the preceding quarter with stakes worth $1.14 billion. The hedge fund sentiment for the stock is positive. As of September 30, Two Sigma Advisors is the most prominent shareholder in the company and has stakes worth $393.70 million.

Here is what ClearBridge Investments had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its third-quarter 2022 investor letter:

“In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.”