Climate change stocks may not be what you think. Think electric cars and not necessarily things that regulate and focus on what’s causing wildfires and melting icebergs. But every little bit helps. So when it comes to global warming stocks, think outside the box.
Chart by TradingView.
| Symbol | Name |
|---|---|
| BLNK | Blink Charging Co |
| TSLA | Tesla Inc. |
| ENPH | Enphase Energy |
| FSLR | First Solar Inc. |
Are you looking for climate change stocks? The temperature of the earth has increased over 1 degree Celsius since the industrial revolution. As a result, people are witnessing devastating weather around the world.
The negative impacts of global warming include faster melting of glaciers, erratic rainfalls, floods, wildfires, and stronger hurricanes.
The United Nations Intergovernmental Panel on Climate Change (IPCC) is expected to come up with a new report on climate change next week. The report will include detailed information on how rising greenhouse gas emissions are lifting sea levels
And how it’ll result in extreme weather in the future. This is why climate change stocks are something you should consider.
The report is compiled by over 200 scientists and has the backing of 195 countries. IPCC will be releasing it after seven years. It will be the most comprehensive assessment of global warming so far. The report will also predict the emissions levels the world needs to maintain to prevent the average global temperature from rising over 1.5 degrees Celsius.
According to scientists, the world needs to cut carbon emissions to zero by 2050 to avoid the catastrophic impacts of global warming. The latest report will also serve as a guide for governments for implementing new emission regulations.
Every catastrophic event usually brings an opportunity for some businesses. For instance, many companies benefitted from the Covid-19 crisis. To name a few, e-commerce giant Amazon, video-conferencing service Zoom, and biotechnology firm Moderna were among the top beneficiaries of the pandemic.
In a similar way, certain companies and industries are poised to benefit from global warming. We have compiled a list of global warming stocks that we believe will capitalize on the massive opportunities created as a result of climate change.
Blink Charging Co (BLNK)
Automakers have been trying to bring more electric vehicles to the markets to limit carbon emissions. Hence they’re on our climate change stocks list. The rising number of EVs on the roads has raised the demand for EV charging stations.
Blink Charging is benefitting from the trend as it is a leading provider of EV charging equipment and services. It has thousands of charging stations spread across the U.S. Meanwhile, the company is rapidly expanding its charging network. It has deployed nearly 1,600 new charging stations in the first quarter alone.
However, BLNK hasn’t generated a profit so far as it continues to spend a hefty amount on expanding its network. Nevertheless, its revenue is growing at a decent pace. The company reported a 72 percent surge in its revenue for the quarter ended March 31. In addition, revenue from product sales climbed 113 percent on a year-over-year basis to $1.7 million amid strong demand for its commercial and residential products.
Moreover, its senior leadership is very optimistic about the future of Blink Charging. The management believes the company is well set to benefit from the rapidly growing EV charging market.
Meanwhile, Blink Charging is also trying to increase its international presence. As a part of those efforts, the company acquired EV charging operator Blue Corner N.V a couple of months ago. The acquisition will give the company access to Blue Corner’s 3,813 charging locations spread across Europe. To conclude, the growth prospects of BLNK look bright considering its improving financial position, network expansion, and increasing demand for charging services.
Tesla Inc. (TSLA)
Electric vehicle giant Tesla is among the very few companies that have gone too far, too fast. Tesla stock has skyrocketed nearly 1400% over the past two years. It’s the most valuable automaker with a market capitalization of more than $692 billion.
Tesla has benefitted from the stricter emissions regulations globally. Governments around the world have been pushing automakers to bring more EVs into the market to reduce carbon emissions.
Some regions and countries, including U.S., Europe, and China, have been offering subsidies to automakers, battery producers, and customers for promoting EVs.
Such initiatives have fueled Tesla’s growth in recent years. If we talk about its financial performance, the company just delivered record results for the second quarter.
It reported a massive profit of $1.14 billion for the three months ended June 30. Significantly higher than $104 million in the same period last year.
Total revenue climbed nearly 100 percent on a year-over-year basis to $12 billion. The latest quarterly results were mainly driven by record vehicle deliveries. An increasing number of people have started preferring EVs over gasoline-powered vehicles.
Meanwhile, Tesla’s also making heavy investments to boost its manufacturing capabilities. The company’s current annual production capacity stands at approx. 1 million vehicles. It ramped up the production of Model 3 last year, besides commencing production of Model Y at Shanghai.
Moving forward, Tesla intends to establish two more factories in Berlin and Texas, respectively. Those factories are expected to increase their manufacturing capacity by two folds.
This will help the company in meeting the demand for EVs in the coming years. And why it’s on our climate change stocks list.
Electric Vehicles Besides Tesla
Tesla enjoys a major share of the global EV market right now. The International Energy Agency (IEA) predicted that global EVs numbers could touch 230 million by 2030. Being the dominant player in the market, Tesla is expected to gain maximum benefit from the EV boom.
Nevertheless, rival automakers are also trying hard to get a chunk of this lucrative market. For instance, Ford has launched the electric version of its F-150 pickup truck in May. This marks its first major shift to low-emission automobiles. Separately, General Motors recently vowed that it would stop selling gasoline-powered vehicles by 2035.
Moreover, Japanese automaker Honda announced that it would only sell electric versions and hybrids in Europe from 2023. In addition, Nissan plans to roll out eight electric models over the next two years. So keep those companies in mind as climate change stocks.
What Companies Will Benefit From Climate Change?
Companies like Plug Power and SunPower will benefit from global warming. Climate change stocks are companies that are going to help mitigate climate change. Stocks like solar companies and electric cars. However, look at California. They can’t handle the power needed for electric cars. As a result, we may have to come up with some better and more energy-efficient. Global warming stocks should consider that.
Enphase Energy (ENPH)
Solar-power systems supplier Enphase Energy is next on the list of climate change stocks. The company, founded in 2006, manufactures microinverters that convert the direct current produced by solar panels to alternating current.
The Biden administration has directed the solar industry to rapidly boost its capacity. The U.S. government wants to generate 100 percent electricity from renewable sources by 2030. However, that’s an ambitious target since the country produced 60 percent of electricity from fossil fuels last year.
Nevertheless, the U.S. government is facing increasing pressure from environmental scientists to switch to renewable energy sources to limit the negative impacts of global warming. As a result, the demand for solar power systems and products will increase sharply in the coming years.
Solar companies, including Enphase Energy, are expected to benefit from the boom in the solar industry. Enphase is already increasing its production to capitalize on the growing demand for solar systems in the coming years.
Moreover, its financial performance is also promising. The company last month announced better-than-expected earnings and revenue for the second quarter ended June 30. Enphase earned 53 cents per share on an adjusted basis, up more than 211 percent from the year-ago quarter.
Total revenue for the quarter climbed 152 percent on a year-over-year basis to $316.1 million, mainly driven by elevated demand for its microinverter systems. The latest quarterly results easily exceeded analysts’ average forecast of 43 cents per share for earnings and $311 million for revenue.
First Solar Inc. (FSLR)
The fourth company on the list of global warming stocks is the leading solar manufacturer First Solar. The company is also benefitting from the increasing adoption of solar power worldwide. The share of solar-generated electricity around the globe is expected to increase from 3 percent this year to over 20 percent by 2050, according to an estimate.
The adoption of solar-generated electricity would be much faster in the U.S. As a result, the demand for FSLR’s solar panels will also increase sharply. In short, First Solar stock is expected to gain more value over time. So keep this in mind for climate change stocks.
Final Thoughts
The world is changing and we need to change with it. As a result, climate change stocks are companies we hope are helping the earth more than hurting it. Jeff Bezos recently said they’re exploring going into space so we can put our waste in space instead of on earth. Instead of polluting space, let’s be better about keeping not only the earth safe but the atmosphere it’s in. That way we’re still here to buy global warming stocks.
