In this article, we take a look at the 8 Best Climate Change Stocks to Buy According to Analysts.
On Sunday, the Pan-European Commission on Climate and Health, an independent advisory group convened by the World Health Organization (WHO) and Europe, issued a call to action that highlights recommendations to address climate change. The group emphasized that climate change is an immediate and growing crisis affecting health, food, water, energy, and national security simultaneously, noting that the current response is not matching the severity of the issue.
The Commission issued 17 recommendations for what the WHO and governments should do next to address climate change, stressing the need to shift funding from actions that accelerate the climate crisis to initiatives that seek to prevent it as far as possible. The group urged government heads to bring climate and health onto the agenda of national security councils. It added:
“As European governments are currently redirecting public spending toward security in response to mounting geopolitical pressures, the Commission argues that climate change is itself a primary security risk; one that is already disrupting infrastructure, health systems and food and water security across the region, and one whose costs will compound with every year of delayed action.”
Aside from urging the treatment of climate change as a growing threat to health security, it also called for improving the climate resilience of health systems, emphasizing the need to reduce their greenhouse gas emissions. The group urged mandatory training for health professionals on climate change and health, highlighting the need for greater emphasis on mental health in climate-health planning.
As we consider this development, let’s take a look at the 8 Best Climate Change Stocks to Buy According to Analysts.
Photo by Jason Blackeye on Unsplash
Our Methodology
To compile this list, we screened stocks in climate change industries, including renewable energy, carbon capture, electric vehicles, and green technology. From this pool, we ranked the companies by potential share price upside based on analyst consensus, placing the stock with the highest upside at the top. Additionally, we also included the number of hedge funds holding stakes in these companies as of the fourth quarter of 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All pricing data is as of market close on May 19, 2026.
8. Bloom Energy Corporation (NYSE:BE)
Potential Upside: 5.23%
Number of Hedge Fund Holders:88
Bloom Energy Corporation (NYSE:BE) is one of the best climate change stocks to buy according to analysts. Based on 29 analyst ratings compiled by CNN, 45% rated Bloom Energy Buy, while 45% rated it Hold. The stock has a median price target of $275, a 5.23% upside from the current price of $261.34.
On May 13, Clear Street raised its price target on Bloom Energy to $250 from $180 and maintained a Hold rating on the stock, according to a report by TheFly. The higher price target reflects an adjustment to a 2028 valuation basis from its 2027 forecasts, according to the analyst.
Earlier on May 12, Barclays analyst Christine Cho increased the price target on Bloom Energy to $254 from $177 while maintaining an Equal Weight rating on the stock. The analyst attributed the higher price target to reflect the sales and margin beat for the quarter, higher guidance for this year, as well as management’s long-term outlook commentary.
Last month, Bloom Energy reported a 130.4% increase in its first-quarter revenue to $751.1 million compared to $326.0 million in the same period in 2025. Product revenue, which accounted for the bulk of revenue, increased 208.4% to $653.3 million from $211.9 million in the same period a year ago.
Bloom Energy Corp. (NYSE:BE) empowers enterprises to meet soaring energy demands and responsibly take charge of their power needs. The company’s solid oxide fuel cell systems provide ultra-resilient, highly scalable onsite electricity for Fortune 500 customers around the world, including data centers, semiconductor manufacturing, large utilities, and other commercial and industrial sectors.
7. NextEra Energy, Inc. (NYSE:NEE)
Potential Upside: 12.95%
Number of Head Fund Holders:72
NextEra Energy, Inc. (NYSE:NEE) is one of the best climate change stocks to buy according to analysts. On May 19, TheFly reported that Morgan Stanley increased its price target on NextEra to $115 from $107 while maintaining an Overweight rating on the stock following the company’s announcement of an all-stock deal with Dominion Energy to create a utility and energy infrastructure company with an enterprise value of over $400 billion.
Morgan Stanley described the deal as “attractive overall”, highlighting that it brings accelerated growth prospects in various aspects, such as data centers and cleaner earnings power.
On May 18, NextEra announced that it has entered into a definitive agreement to combine with Dominion Energy in an all-stock transaction, emphasizing that the transaction will create the largest regulated electric utility business. It added that the combined company will be more than 80% regulated and serve approximately 10 million utility customer accounts across the states of Florida, Virginia, North Carolina, and South Carolina. Additionally, the combined firm will own 110 gigawatts (GW) of generation across a broad mix of energy sources.
As part of the merger, Dominion Energy shareholders will receive a fixed exchange ratio of 0.8138 shares of NextEra Energy for each share of Dominion Energy they own at the close of the transaction. This will result in NextEra Energy and Dominion Energy shareholders owning approximately 74.5% and 25.5% of the combined company, respectively.
In addition, Dominion Energy shareholders will continue to receive Dominion’s current quarterly dividend through closing, plus a one-time cash payment of $360 million at closing of the transaction.
Of the 26 analyst ratings compiled by CNN, 62% rated NextEra Buy, while 35% rated it Hold. The stock has a median price target of $101.72, a 12.95% increase from the current price of $90.06.
NextEra Energy, Inc. (NYSE:NEE) is the largest electric power and energy infrastructure company in North America and is a leading provider of electricity to American homes and businesses. It owns Florida Power & Light Company, America’s largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. The company also owns the largest energy infrastructure development company in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America’s growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy, and battery storage.
6. Johnson Controls International plc (NYSE:JCI)
Potential Upside: 14.46%
Number of Hedge Fund Holders: 75
Johnson Controls International plc (NYSE:JCI) is one of the best climate change stocks to buy according to analysts. On May 19, modular data center builder Armada announced that it has entered an agreement with Johnson Controls for the development of the Galleon Forge One factory in Arizona.
In a statement, Armada said Galleon Forge One will span up to 400,000 square feet and is projected to create 500 jobs, in addition to additional roles in the domestic supply chain. The company also unveiled a Global Framework Agreement for modular data center systems with Johnson Controls, adding that the latter is also making an investment in the company.
Johnson Controls Chief Executive Officer Joakim Weidemanis said the company is working with Armada to rapidly deliver secure modular data centers at scale. He added:
“Together, we have already deployed units across the United States and around the world, demonstrating the expertise and global reach required to support mission-critical environments. Johnson Controls’ differentiated technology, U.S.-based manufacturing strength and Armada’s edge computing expertise will deliver the thermal‑critical environments that perform predictably, deploy quickly, and scale with confidence.”
Of the 25 analyst ratings compiled by CNN, 52% rated Johnson Controls Buy, while 36% assigned a Hold rating. The stock has an average price target of $155, a 14.46% upside from the current price of $135.42.
Johnson Controls International plc (NYSE:JCI) is engaged in thermal management, mission-critical building systems, energy efficiency, and decarbonization. The company helps customers use energy more productively, reduce carbon emissions, and operate with precision.
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.
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