Top ideas in sustainable energy and mobility for Q3 - Baird

Baird analysts shared their top stocks for sustainability, clean energy, and mobility in an Equity Research Morning Report.

The renewables sub-sector (NASDAQ:RNRG) has underperformed year-to-date at -2.2%, compared to the S&P 500 (SP500), which is up 13.8%.

By the second half of 2025, Baird analysts expect high volatility with “the ebbs and flows of polling and interest rate cut expectations, which are two of the largest catalysts for the space outside of company control.”

These are Baird’s top ideas in sustainable energy and mobility into the third quarter:

• HA Sustainable Infrastructure Capital Inc. (HASI) - This is Baird’s top idea within the sub-sector.
• First Solar Inc. (FSLR) - Analysts expect the average selling prices to be strong, even with lighter bookings, with demand for domestic panels supporting pricing power.
• Itron Inc. (ITRI) - Analysts expect a strong quarter and are confident that the company’s guidance will be maintained or raised.
• Nextracker Inc. (NXT) - The company should continue to benefit from strength in solar because of cost competitiveness and the need for power generation.

Other sustainable energy and mobility ETFs: (SOLR), (KARS), (TAN), (ICLN).