Climate change is a major concern for the economy and the stock market. The rise in temperatures has led to more natural disasters, coastal flooding, and many other issues. Interestingly, climate change has already had an impact on the stock market and will continue to do so in the future. Therefore, when looking for stocks to buy, you need to keep rising sea levels in mind.
Governments and companies are starting to take the current climate situation seriously and cut back on carbon emissions to lessen their impact.
Most of the heat we’re trapping on Earth is being soaked up by the ocean, which is an unfathomable amount of energy that places extra strain on the planet’s ice sheets and glaciers. These melting ice structures inevitably contribute to rising sea levels.
It will take a global effort to reduce carbon emissions in order to combat the effects of climate change. Adaptation is a process, and progress is being made in the battle against climate change. There are now clear leaders emerging who are helping accelerate the shift towards renewables.
Infrastructure companies are doing well in this climate change era. This is because the world needs more and more infrastructure to cope with our society’s increasing population and demands.
With world leaders taking strides to improve clean energy, more and more companies are making strides to make our planet cleaner. Consequently, if you’re interested in investing in a company with a sustainable policy, here’s a rundown of some of the companies that can reduce your carbon footprint:
- Tesla (NASDAQ:TSLA)
- Brookfield Renewable Partners (NYSE:BEP)
- ChargePoint Holdings (NYSE:CHPT)
- Caterpillar (NYSE:CAT)
- Stem (NYSE:STEM)
Stocks to Buy: Tesla (TSLA)
Tesla’s mission is to accelerate the advent of sustainable transport by bringing electric cars to market. They believe doing so will help alleviate environmental issues and address climate change. Tesla also wants to help expedite the world’s transition to sustainable energy through its solar and battery products.
Tesla doesn’t just manufacture electric cars. They also manufacture a whole range of products to help people be more environmentally friendly, like solar panels that collect energy during the day and batteries that store it at night.
The company expects its production to boom, and the stock price is on an upward trajectory for several years now. They do not plan to release any new electric models this year but will continue to focus on supply-chain issues to meet customer demand. Tesla is focusing on building more cars for the models it already produces and plans to add.
Tesla sold nearly a million electric cars in 2021, and it’s proven to be a runaway success. They are opening up new plants worldwide to keep up with demand. The company is adding more factories to its products and has a manifesto of producing 20 million EVs every year, which will happen in the next ten years. Overall, if you are looking for stocks to buy, TSLA will always remain near the top of the list.
Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners is a game-changer for the renewable energy industry. The company invests in renewable energy projects and is one of the largest renewable energy investors in the world. They are also a leader in sustainable infrastructure management, with expertise that ranges from hydroelectric power to solar photovoltaics.
The company’s footprint is global, and as it continues to grow, you will see an uptick in profitability. It operates in North America, Europe, Asia-Pacific, and South America and has over 200 renewable energy projects.
BEP has 36 GW worth of renewable energy projects in the pipeline. This is enough to power 7 million homes for one year. And with 21 GW in renewable assets that offset emissions equivalent to taking 6 million gas-powered vehicles off the road, they’re well-poised to meet their targets.
Brookfield has a diverse stream of revenues, the bulk of which come from its hydroelectric power plants. Hydroelectric energy is one of the older clean energy technologies. However, it still makes up half of Brookfield’s revenue. These projects have limited growth opportunities compared to other clean energy technologies. But hydropower is highly reliable and can be used for uninterrupted power generation. Hydropower is also the driving force for economic growth in other areas.
Brookfield Renewable has a 9GW pipeline of solar and wind projects, making its total pipeline worth around 28GW. Solar power is always going to be the real growth segment in renewables. Therefore, the conglomerate is moving in the right direction here.
Altogether, Brookfield Renewable Partners has revolutionized the energy industry by investing in renewable energy sources for more than a decade. This has made them a leader in this field and has helped them to reach new heights.
Stocks to Buy: ChargePoint Holdings (CHPT)
The world of electric vehicles is expanding rapidly and the demand for charging stations has increased. ChargePoint is a company that provides EV charging stations to businesses and individuals. There are 163,000 ChargePoint locations across North America and Europe.
They have a 70% market share of fast chargers, making them the largest EV charger network in North America. ChargePoint’s mission is to change the way people think about electric transportation by making it easy for people to charge, use and own an electric vehicle.
Charge Point offers EV charging hardware for businesses and sells software to measure and monitor the amount of time taken up. It can be installed on-premises or in the cloud. ChargePoint provides 360-degree service, so you can rest assured that you’ll continue to get revenue even after installation.
The plan to expand your EV charging network while changing the company’s charging model and providing innovation will be key in making this business profitable. The company seems to think that if it can build up a lot of customers, it will be able to make money in various ways.
However, different EV charging providers, both publicly listed and private, can give tough competition to ChargePoint. The networks the car manufacturers have built or intend to build will also be a challenge for ChargePoint. In addition, the company is a growth stock. They have not done too well in the last six months. But if you are a risk-tolerant investor, this one has the potential to become a multi-bagger.
Electric vehicles are becoming increasingly popular, so it’s not surprising they’ll support the company’s growth soon. ChargePoint is a leading company in this space, so it’ll only really be able to reap all of these benefits if its business model stays strong.
Caterpillar is a large, global equipment manufacturer. They are a leading manufacturer of construction and mining equipment. The company holds the top rank in the earthmoving industry and is one of the most valuable brands in the world.
Caterpillar’s history is erratic. Hence, it is important to look at their history with a long-term view. As you can see, the construction, mining, and energy markets affect Caterpillar’s revenue. When raw materials prices are high and the economy is growing, it’s a good time for the company. However, demand can decrease when the market is struggling or during recessions.
There are analysts who claim that the stock is going through a temporary cyclical recovery. Yet, when dealers replenish their inventory and end-market sales start to slow down, the stock will go down again. Moreover, the bears are concerned about how the governments’ budget balances will fare as these countries grapple with meeting increased health care spending. This could potentially tighten budgets for infrastructure spending in the future.
Optimists point out that Caterpillar started a multi-year mining investment recovery as commodity prices have improved. And they’re coming out of a period of low investment. In addition, Caterpillar’s oil and gas-related products sales should do well now that oil prices are rising exponentially. Until the Russia-Ukraine conflict subsides, expect the situation to remain the same.
In conclusion, while Caterpillar has struggled in recent years, there are also some positive developments. These include increased infrastructure expansion in North America and a billion dollars worth of investment in research and development. That makes it one of the best stocks to buy.
Stocks to Buy: Stem (STEM)
Stem provides sustainable battery solutions. Using a powerful artificial intelligence (AI) and machine learning technology, Athena can seamlessly switch between generation in real-time, grid power, and storage if needed. More and more people are embracing solar power, lessening their dependence on the electricity grid. Solar panels can also help regulate renewable energy intermittency and lower carbon emissions.
You need a reliable source of clean energy. That’s why it’s worth considering battery storage. That way, you can smooth out the production of power from renewable sources to give people reliable energy at all times with less maintenance.
That is where Stem is a unique proposition. It is a leader in the field of smarter battery storage. They don’t make batteries and work with manufacturers to find the most efficient ones and also provide a complete hardware and software solution in one package for customers who want to take advantage of this emerging opportunity.
This software can generate revenue. And long-term success relies on money brought in from software usage. Overall, Stem has a large pipeline of opportunities that should provide steady growth.
On the publication date, Faizan Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan does not directly own the securities mentioned above.