Climate change may be a divisive topic… but it’s a profitable one.
It’s no surprise that new companies are popping up in the space—trying to capitalize on the budding trend.
Solar panels and electric cars dominate the discussion, and with good reason.
The cost of lithium-ion batteries has dropped nearly 80% in the past decade. And more households are installing solar systems than any other time in history.
It probably helps when you have athletes and celebs like Lewis Hamilton, Mark Ruffalo, and Leonardo DiCaprio use their platform to bring awareness to climate change.
So where can you make some serious green?
I’ve put together a list of five companies that I believe are poised to go on a run. And if you can get your timing right, they can turn out to be excellent trades and mega-profitable.
Ecolab has big plans to be at the head of hygiene, energy, and water technology. The goal: process waste, meet regulatory standards, and improve efficiency. Their client list wraps the globe with 40 diverse industries and 170 countries. Most supply safe food, green energy, clean water, and healthy environments.
They work everything from wastewater to health and safety compliance. Companies rely on them to meet governmental and community standards.
I love how they work with companies to optimize and streamline their energy and water usage. While recycling is great, conservation drops dollars to the bottom.
Bottom line is Ecolab helps recycle our waste, keeping the environment clean and safe.
Tesla holds the title as luxury electric car that people dream about but that not the only title it holds. It is one of the most climate conscious automakers. Tesla’s vehicles are at the top of the list when it comes to reducing carbon emissions due to its electric cars. Their global community saved millions of tons of CO2 by choosing to drive electric cars.
While Tesla had a volatile year, dipping below $200 at one point, it climbed right back up. That is thanks to the fact that Tesla has cornered about 17% sales of the electric vehicle market. Many hedge funds are betting on the Tesla bull until 2024, predicting it doubles in price from its automated driving technologies and high demand.
First Solar (FSLR)
Out of America’s many solar panels manufacturers, First Solar is leading the pack. First Solar is working on boosting its annual manufacturing capacity. Two years ago, First Solar saw an epic demand for its products. Its backlog of orders is enough to keep its production facilities busy until 2020. That number doesn’t include new orders. Most of what First Solar will be producing is its next-generation Series 6 panels. These panels lower installation costs and are more effective.
Business is great. But, the majority of the company’s profits come from its solar panels not from developing power systems. Eventually, demand and growth could taper off for First Solar. The biggest challenge still remains battery storage for off-peak hours.
Clean Harbors (CLH)
Clean Harbor operates in similar industries to Ecolab, including environmental, industrial, and energy services. But they work more on the petrochemical end and hazardous waste disposal.
They’re one of the largest recycler and refiner of used oil. When the BP oil spill made headlines, Clean Harbor got enlisted for cleanup. The estimate is that Clean Harbor made $300 million from just sales because of the spill.
Clean Harbor is also racking money from post-consumer recycled plastics. The value for this market in 2019 was under $8 billion. However, by 2024 it could be as much as $10.2 billion.
Waste Management Inc. (WM)
Waste Management has come a long way since its 1998 fraud scandal. They run around 300 waste removal stations and 250 landfills. But its eyes are set on the trash to treasure business. To obtain that goal, they invested in gas-to-energy and waste-to-energy facilities.
Waste Management also worked on the BP oil spill cleanup. They were in charge of carting away oil, contaminated sand, and other oil-contaminated waste from the Deepwater Spill.
The profits are showing that climate change is good for books. Waste Management received an A from the environmental non-profit CDP. But that wasn’t the only reward, this year WM stock has been higher than it’s ever been.
Think outside the box
There’s more industries riding this change than you realize. Part of the demand driving Beyond Meat’s growth comes from consumers looking to reduce their carbon footprint. Even artificial intelligence companies are taking a piece of the action, working to make companies more efficient.
The higher they rise, the more likely they are to provide a TPS setup. That’s where I step in with my Weekly Money Multiplier trades.