tiprankstipranks
These 3 Climate Stocks Could Surge on COP27 Summit Results
Stock Analysis & Ideas

These 3 Climate Stocks Could Surge on COP27 Summit Results

Story Highlights

As the annual COP27 meeting kicks off in Egypt, world leaders will compare notes and propose solutions to address the issue of climate change. With this, there’s an opportunity for nations to collaborate on a global problem – and a chance for forward-thinking investors to bulk up their Earth-friendly portfolios.

It’s quite possibly the most important climate-related event of 2022 – yet, it’s hardly even mentioned in the financial press or on stock trading message boards. The annual COP27 summit has the potential to impact developed nations’ approach to cleaning up the planet. It’s worth keeping tabs on, just for the environmental and political implications – but at the same time, there are three stocks, FSLR, CHPT, and NEE, that investors ought to consider, as well.

So, where are the pockets of value as the heads of various powerful nations convene to discuss clean-energy initiatives? There are at least three stocks with notable growth potential as the COP27 summit kicks off. However, before we jump into any Earth-friendly trades, first, it’s important to know what this meeting is all about and why it’s relevant to financial traders of all stripes.

What is COP27, Anyway?

Touted across the world but barely mentioned in the mainstream American press, COP27 is an annual meeting that’s more formally known as the 27th gathering of the Conference of the Parties to the United Nations Framework Convention on Climate Change. This year, it’s taking place in an Egyptian city known as Sharm El-Sheikh from November 6 to November 18.

Some of the heads of state in attendance are U.S. President Joseph Biden, French President Emmanuel Macron, and German Chancellor Olaf Scholz. However, Russian President Vladimir Putin and Chinese President Xi Jinping aren’t attending COP27.

Despite the absence of Putin and Xi, there may be some wheeling and dealing – or at least constructive discussions – among the world leaders present at the summit. Therefore, it’s likely not a bad idea to take a small position in the following three stocks, all of which echo the primary themes of COP27: addressing carbon emissions, global warming, and climate change in general.

First Solar (NASDAQ: FSLR)

Headquartered in Arizona, First Solar is a go-to name for many green-energy investors. Founded in 1999, First Solar was an early mover in the field of providing comprehensive photovoltaic (PV) solar energy solutions, including eco-efficient solar modules that produce less carbon than conventional crystalline silicon PV panels.

For solar-focused potential profits on the heels of the COP27 summit, you’d be hard-pressed to find a better investment than FSLR stock. First Solar is a highly ambitious solar market leader that recently announced a plan to invest up to $1 billion in a new, 3.5 gigawatts-DC manufacturing facility in the American Southeast.

Furthermore, First Solar is a powerful revenue generator, having posted $629 million in net sales in Q3 2022. Given the company’s current growth rate – and with solar-energy awareness raised at the COP27 meeting – First Solar and its investors should soon have their day in the sun.

Is FSLR Stock a Buy, According to Analysts?

Turning to Wall Street, FSLR is a Moderate Buy, based on 12 Buys and five Hold ratings. The average First Solar price target is $171.33, implying 16.5% upside potential.

ChargePoint (NYSE: CHPT)

Ready to electrify your portfolio while the COP27 summit’s still in progress? If so, then you have an opportunity right now to stake your claim in California-based ChargePoint, a provider of electric vehicle (EV) charging stations.

According to the company, the total investment in EV charging infrastructure in the U.S. and Europe is estimated to reach $60 billion by 2030 and a whopping $192 billion by 2040. Is it possible that COP27 will produce an agreement or two that pushes these investments even higher?

It’s certainly possible, and investors can get ahead of the curve by grabbing a few shares of CHPT stock. This is a fiercely ambitious competitor, as ChargePoint claims over 4,000 commercial and fleet customers – including 80% of Fortune 500 companies – and has delivered over 87 million charging sessions.

By the way, ChargePoint President and CEO Pasquale Romano also happens to have the ear of President Biden. Not long ago, Biden appointed Romano to the National Infrastructure Advisory Council (NIAC). This should provide a confidence boost to CHPT stockholders, as it certainly can’t hurt ChargePoint to have an executive in such a significant government-advisory position.

Is CHPT Stock a Buy, According to Analysts?

Turning to Wall Street, CHPT is a Strong Buy, based on six Buys and one Hold rating. The average ChargePoint price target is $24.79, implying 108.2% upside potential.

NextEra Energy (NYSE: NEE)

Florida-headquartered NextEra Energy is aptly named, as it represents the next era of energy – clean and otherwise. NextEra owns America’s largest electric utility, Florida Power & Light Company, so this might not sound like a company that would benefit from COP27. However, there’s more to NextEra than meets the eye, including a green-energy angle to consider.

Bear in mind that the transition away from fossil fuels won’t happen overnight. Hence, it’s likely not a terrible idea to invest in NEE stock since Florida Power & Light generates strong revenue from delivering conventional electricity to 12 million Floridians. At the same time, though, NextEra owns NextEra Energy Resources. This subsidiary and its affiliated entities comprise the “world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage,” according to the company.

If you’re wondering whether NextEra is taking the clean-fuel revolution seriously, note that the company is collaborating with Coffee County, Alabama, to build the state’s first landfill renewable natural gas production facility. Now, that’s an initiative that the COP27 Summit attendees can applaud – and NEE stockholders can applaud the company for paying a 2.1% forward annual dividend, as well.

Is NEE Stock a Buy, According to Analysts?

Turning to Wall Street, NEE is a Strong Buy, based on nine Buys and one Hold rating. The average NextEra Energy price target is $92.90, implying 20.6% upside potential.

Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles