5 Best Environmental Stocks to Buy Now

In this article, we will discuss the 5 best environmental stocks to buy now. If you want to explore similar stocks, you can read 14 Best Environmental Stocks to Buy Now.

5. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 47

Ford Motor Company (NYSE:F) is a well-established, iconic American company with a long and storied history. It has a broad portfolio of vehicles, ranging from SUVs, pickup trucks, and sedans to commercial vehicles and luxury vehicles. Ford Motor Company (NYSE:F) has been investing heavily in its electric vehicle (EV) lineup, with plans of making electric vehicles account for half of its global sales by 2030. The stock is ranked high among the best environmental stocks to buy now.

On October 26, Ford Motor Company (NYSE:F) posted earnings for the third quarter of fiscal 2022. The company reported earnings per share of $0.30 and generated a revenue of $37.19 billion, up 11.99% year over year. The company has a strong cash position and is profitable. Ford Motor Company (NYSE:F) has free cash flows of $2.63 billion and a trailing twelve-month operating margin of 7.05%.

This November, Citi analyst Itay Michaeli raised his price target on Ford Motor Company (NYSE:F) to $14 from $13 and reiterated a Neutral rating on the shares.

At the close of Q3 2022, 47 hedge funds were long Ford Motor Company (NYSE:F) and disclosed positions worth $1.18 billion. This is compared to 46 positions in the previous quarter with stakes worth $608.7 million. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the top investor in the company and has a position worth $503.6 million.

Here is what Leaven Partners had to say about Ford Motor Company (NYSE:F) in its third-quarter 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%^[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

4. Linde plc (NYSE:LIN)

Number of Hedge Fund Holders: 56

Linde plc (NYSE:LIN) is an industrial gas company with a strong global presence and leading market share in many of its markets. The company is well-positioned to benefit from the global shift towards cleaner and more efficient energy sources and is placed among the best environmental stocks to buy now. The company has a long-term strategy in place to focus on sustainable growth and long-term value creation. Linde plc (NYSE:LIN) focuses on providing clean energy solutions such as hydrogen and natural gas. The company is investing in new technologies, such as green hydrogen, to meet the increasing demand for clean energy solutions and is well-positioned to benefit from the expected growth in the renewable energy sector.

Wall Street is bullish on Linde plc (NYSE:LIN). On October 31, Deutsche Bank analyst David Begleiter raised his price target on Linde plc (NYSE:LIN) to EUR 355 from EUR 350 and maintained a Buy rating on the shares.

At the end of the third quarter of 2022, 56 hedge funds were bullish on Linde plc (NYSE:LIN) and held positions worth $3.47 billion. This is compared to 48 positions in the previous quarter with stakes worth $3.25 billion. The hedge fund sentiment for the stock is positive. As of September 30, Impax Asset Management is the largest shareholder investor in the company and has stakes worth $816.9 million.

Here is what ClearBridge Investments had to say about Linde plc (NYSE:LIN) in its third-quarter 2022 investor letter:

“Seeing better opportunities elsewhere in the materials sector, we exited our position in Ecolab and added to copper producer Freeport-McMoRan (FCX), which supplies a much-needed resource for the energy transition, and specialty chemical company Linde plc (NYSE:LIN), which has historically held onto pricing gains it has achieved following increases in energy costs. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate. Linde also continues to be well-positioned on hydrogen and carbon capture with contract-backed project capex likely accelerating in the medium term as the recently passed Inflation Reduction Act rolls out.”

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.”

2. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 73

NextEra Energy, Inc. (NYSE:NEE) is a leader in the renewable energy space, with a portfolio of over 23,900 net megawatts of generating capacity across the U.S. and Canada. This positions the company well to benefit from the continued shift towards clean energy sources and ranks it on our selection of the best environmental stocks to buy now. On October 28, the company posted market-beating earnings for the third quarter of fiscal 2022. NextEra Energy, Inc. (NYSE:NEE) reported an EPS of $0.85 and beat estimates by $0.05. The company generated a revenue of $6.72 billion, up 53.75% year over year and ahead of Wall Street estimates by $946.36 million.

This September, BMO Capital analyst James Thalacker raised his price target on NextEra Energy, Inc. (NYSE:NEE) to $100 from $92 and reiterated an Outperform rating on the shares. On October 24, Guggenheim analyst Shahriar Pourreza updated his price target on NextEra Energy, Inc. (NYSE:NEE) to $99 from $108 and maintained a Buy rating on the shares.

At the close of the third quarter of 2022, 79 hedge funds were long NextEra Energy, Inc. (NYSE:NEE) and held collective stakes of $2.11 billion in the company. Of those, Fisher Asset Management was the top shareholder in the company and disclosed a position worth $741.9 million.

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

“NextEra Energy, Inc. (NYSE:NEE) is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.”

1. General Motors Company (NYSE:GM)

Number of Hedge Fund Holders: 74

General Motors Company (NYSE:GM) has a strong lineup of vehicles, with solid sales over the past several years. The company has invested heavily in research and development to stay ahead of the competition and has been successful in introducing new technologies to the market. General Motors Company (NYSE:GM) is also well-positioned to benefit from the growth in the electric vehicle market as it has invested heavily in its electric vehicle program and has introduced some of the most popular EV models in the market including the Chevrolet Bolt EV, GMC Hummer EV, and Cadillac LYRIQ, which have been well-received by consumers. General Motors Company (NYSE:GM) plans on leading the EV market in the coming years and is placed high on our list of the best environmental stocks to buy now due to the company’s successful track record, market-leading position, and robust business model.

 Wall Street is bullish on General Motors Company (NYSE:GM). This October, JPMorgan analyst Ryan Brinkman raised his price target on General Motors Company (NYSE:GM) to $59 from $58 and maintained an Overweight rating on the shares. On October 26, Deutsche Bank analyst Emmanuel Rosner updated his price target on General Motors Company (NYSE:GM) to $35 from $36 and maintained a Hold rating on the shares.

At the end of Q3 2022, 74 hedge funds held stakes in General Motors Company (NYSE:GM). The total value of these stakes amounted to $3.32 billion. As of September 30, Berkshire Hathaway is the dominant investor in the company and has a position worth $1.60 billion.

Here is what Diamond Hill Capital had to say about General Motors Company (NYSE:GM) in its third-quarter 2022 investor letter:

“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us an attractive entry point to a name we know well.”

You can also take a look at 15 Good Stocks To Invest In and 9 Best European Bank Stocks To Invest In.