By Victor Reklaitis, MarketWatch
A big meeting on climate change in Paris has ended with a historic deal. Banks have been thinking about that hot-button topic — including how to make money from it.
Bank of America Merrill Lynch has come up with more than 220 stocks from around the world that “have exposure to climate change-related solutions.” BAML’s broad roundup comes as Goldman Sachs offers its own ideas about the best “green” stocks.
MarketWatch has whittled down BAML’s long list to just companies that have “high” exposure to such products or services, according to the bank, rather than only “medium” or “low” exposure. Also eliminated are companies that aren’t traded on U.S. exchanges.
There are “9 entry points for investors wishing to play the climate change and low carbon solutions theme,” said BAML equity strategists Sarbjit Nahal, Beijia Ma and Felix Tran in a note released Dec. 1. They say the nine places to get involved are: “1) Energy Efficiency; 2) Wind; 3) Solar; 4) YieldCos; 5) Nextgen Vehicles, Batteries & Storage; 6) Nuclear; 7) Hydro; 8) Diversified Cleantech; and 9) Other Cleantech.”
But the whittled-down list below covers just six of those nine areas, as there are no U.S.-listed companies with high exposure to wind, nuclear or diversified cleantech, according to BAML. The term “YieldCos” refers to renewable-energy spinoffs that promise high payouts, as Barron’s has put it .
Without further ado, below are U.S.-listed stocks that BAML views as having high exposure to climate change-related products or services. The bank released its roundup as the Paris meeting began.
Enphase Energy /zigman2/quotes/207948472/composite ENPH -0.66%
First Solar /zigman2/quotes/209356097/composite FSLR +0.51%
SolarCity /zigman2/quotes/205874957/delayed SCTY +10.00%
SunPower /zigman2/quotes/200243424/composite SPWR -5.62%
SunRun /zigman2/quotes/205021014/composite RUN +3.79%
Nextgen Vehicles, Batteries & Storage
Tesla Motors /zigman2/quotes/203558040/composite TSLA +10.78%
CEMIG /zigman2/quotes/208968898/composite CIG 0.00%
Novozymes /zigman2/quotes/207053704/delayed NVZMY +0.93%
BorgWarner /zigman2/quotes/201434123/composite BWA +3.23%
Metaldyne Performance Group
Sensata Technologies /zigman2/quotes/205854600/composite ST +1.16%