Analysts’ Sustainable Stock Picks

Analysts’ Sustainable Stock Picks. Infrastructure, renewable energy, and sustainable stocks with high dividend yields, that analysts say to buy now.

By Ron Robins

Transcript & Links, Episode 126, March 22, 2024

Hello, Ron Robins here. So, welcome to this podcast episode 126 titled “Analysts’ Sustainable Stock Picks.” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Now, remember that you can find a full transcript, and links to content – including stock symbols and bonus material – on this episode’s podcast page located at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, nor do I receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal to you any personal investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast's webpage for links to the actual articles for more company and stock information. Also, some companies might be covered more than once and there is also 1 article link below that time didn’t allow me to review here.

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Infrastructure Stocks to Buy Hand Over Fist in March by Lee Samaha

Infrastructure is an investment that most ethical and sustainable investors like to invest in. So I want to begin with this article. It’s titled 3 Infrastructure Stocks to Buy Hand Over Fist in March and by Lee Samaha. It’s found on fool.com. Here are some brief quotes from the article.

“1. Trimble (TRMB)

With Trimble… infrastructure projects can be precisely managed with a significant reduction in waste and the kind of cost overruns the industry is famous for. It's a key player in digitally transforming how infrastructure is built and maintained…

Based on Wall Street analyst estimates, Trimble will trade at slightly less than 20 times the estimated free cash flow in 2025, a highly attractive multiple…

2. Freeport-McMoRan (FCX) 

The (copper) miner has the resources and the financial flexibility to invest in increasing supply, and to benefit from increased prices for copper. That's why it's the best mining stock to buy in 2024.

3. Atkore (ATKR) 

Atkore [is] a leading manufacturer of products used in electrical power systems in its electrical segment. It also manufactures metal frames and pipes -- among other things -- in its safety and infrastructure segment.

Atkore's earnings could significantly improve in the coming years, and so the stock looks like a good value trading on 10 times its estimated 2024 earnings.” End quotes

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5 Sustainable Stocks With a High Yield by Muskaan Hemrajani

Sustainable stocks with high yields are also in demand by investors. Hence, I thought this article would be of interest. It’s titled 5 Sustainable Stocks With a High Yield by Muskaan Hemrajani on morningstar.com. Now some of what Mr. Hemrajani has to say about his picks.

“1. Best Buy (BBY)

January 2024 Dividend Yield 5.08%

Price: $78.21 as of March 6, 2024

Fair Value Estimate: $90

Morningstar Rating: 3 stars

Morningstar ESG Risk Rating Assessment: Low

According to Morningstar senior equity analyst Sean Dunlop, ‘Best Buy’s dividend should be safe, with its 5%-plus yield looking quite attractive to income investors.’

2. Prudential Financial (PRU)

January 2024 Dividend Yield 4.77%

Price: $109.61 as of March 6, 2024

Fair Value Estimate: $108

Morningstar Rating: 3 stars

Morningstar ESG Risk Rating Assessment: Low

‘Overall, the company has returned approximately $26 billion to shareholders in the past eight years through dividends and share repurchases,’ Morningstar equity analyst Suryansh Sharma wrote in a report…

Prudential Financial provides a variety of financial-services products.

3. Exelon (EXC)

January 2024 Dividend Yield 4.14%

Price: $36.68 as of March 6

Fair Value Estimate: $39

Morningstar Rating: 4 stars

Morningstar ESG Risk Rating Assessment: Medium

Exelon is a pure-play electric and gas transmission and distribution utility that provides investors with a stable earnings profile.

4. Interpublic Group of Companies (IPG)

January 2024 Dividend Yield 3.76%

Price: $31.85 as of March 6.

Fair Value Estimate: $39

Morningstar Rating: 4 stars

Morningstar ESG Risk Rating Assessment: Negligible

Interpublic Group is one of the global Big Five advertising holding companies…

IPG has consistently increased its dividend, posting 7% average annual growth over the past five years.

5. HP (HPQ)

January 2024 Dividend Yield 3.7%

Price: $30.23 as of March 6

Fair Value Estimate: $27

Morningstar Rating: 3 stars

Morningstar ESG Risk Rating Assessment: Low

‘We don’t anticipate HP improving its midcycle growth potential or margin profile, but we do expect it to continue generating heady cash flow and sending nearly all of it back to shareholders between its dividend and repurchase program,’ Morningstar equity analyst William Kerwin (said).” End quotes.

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3 Renewable Energy Stocks That Are Screaming Buys in March by Matt DiLallo

And back to a usual favorite with this article titled 3 Renewable Energy Stocks That Are Screaming Buys in March. It’s by a familiar analyst in this space: Matt DiLallo -- and seen on finance.yahoo.com.

“1. NextEra Energy (NYSE: NEE)

Shares of NextEra Energy have slumped 25% over the past year. That price drop has driven its dividend yield up to around 3.7%, its highest level over the past decade…

The company should have plenty of power to continue growing its earnings at a healthy rate.

2. Brookfield Renewable (NYSE: BEPC) (NYSE: BEP)

Brookfield Renewable stock has shed about 17% of its value over the past year, driving its dividend yield up to 5.8%.

Growth drivers include renewable-energy development projects, inflation-driven rate increases, margin enhancement activities, and mergers and acquisitions.

3. Clearway Energy (NYSE: CWEN) (NYSE: CWEN.A)

Clearway Energy's stock has tumbled nearly 30% over the past year, driving its dividend yield to an eye-popping 7.3%... Given the growth ahead for renewable energy, there should be plenty of investment opportunities.”

End quotes.

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15 Biggest Wind Energy Companies in the World by Meerub Anjum

This analysis of wind energy companies will interest many of you too. It’s titled 15 Biggest Wind Energy Companies in the World by Meerub Anjum and found on finance.yahoo.com. Now some brief quotes by Ms. Anjum.

“Please note that we converted market caps in foreign currencies to USD according to their respective exchange rates, as of March 13.

15. Northland Power Inc. (OTC:NPIFF)

Market Cap: $4.41 billion

The company operates offshore and onshore wind facilities in Europe and Canada.

14. Suzlon Energy Ltd (NSE:SUZLON)

Market Cap: $6.13 billion

Suzlon Energy Ltd. is one of the largest wind turbine manufacturers in the world.

13. Acciona S.A. (OTC:ACXIF)

Market Cap: $6.76 billion

Acciona, S.A… is a leading infrastructure and renewable energy company.

12. Brookfield Renewable Corporation (NYSE:BEPC)

Market Cap: $9.18 billion

The company provides wind, solar, and hydroelectric energy solutions.

11. Siemens Energy AG (ETR:ENR)

Market Cap: $12.29 billion

The company provides renewable energy services through its subsidiary, Siemens Gamesa Renewable Energy.

10. Avangrid, Inc. (NYSE:AGR)

Market Cap: $13.81 billion

The company serves more than 7 million people and has developed 8.7 GW of renewable energy capacity.

9. EDP Renováveis, S.A. (OTC:EDRVY)

Market Cap: $14.79 billion

The company has over 270 wind farms and operates in 28 international markets across the world.

8. Ørsted A/S (OTC:DNNGY)

Market Cap as of March 13: $21.42 billion

Ørsted A/S is a leading renewable energy company, specializing in the development, construction, and operation of offshore and onshore wind farms.

7. Vestas Wind Systems A/S (OTC:VWDRY)

Market Cap: $28.59 billion

Vestas Wind Systems A/S… specializes in the designing, manufacturing, and installing of wind turbines.

6. GE Vernova

Expected Revenue (2024): $35 billion

With an experience of more than 130 years, GE Vernova helps in the generation of nearly 30% of the world's electricity and has a significant role in energy transition.

5. Adani Green Energy Limited (NSE:ADANIGREEN)

Market Cap: $37.42 billion

The company has 12 wind power plants all over India.

4. Constellation Energy Corporation (NASDAQ:CEG)

Market Cap: $53.37 billion

The company operates 27 wind projects across 10 states, with the ability to produce nearly 1,400 MW of energy.

3. Enel SpA (OTC:ENLAY)

Market Cap: $69.12 billion

The company is a leader in renewable energy, providing wind, hydro, and energy storage services.

2. Iberdrola, S.A. (OTC:IBDRY)

Market Cap: $75.62 billion

The company installed 1,793 MW of offshore wind facilities at the end of 2023. An additional 3,000 MW will be in operation before 2027.

1. NextEra Energy, Inc. (NYSE:NEE)

Market Cap: $117.29 billion

The leading renewable energy company specializes in wind and solar energy. The company has tripled its wind energy production over the last decade. It has over 119 wind farms in operation.” End quotes.

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15 Biggest Solar Companies in the World by Meerub Anjum

Similarly to the above article is this one but on solar companies. It’s also by Meerub Anjum and found on finance.yahoo.com. It’s titled 15 Biggest Solar Companies in the World. Again, some brief quotes on each company.

“The biggest solar companies in the world are ranked in ascending order of their market caps, as of March 12, 2024. Please note that we have converted the market caps of foreign companies to USD according to their respective exchange rates as of March 12.

15. ReNew Energy Global Plc (NASDAQ:RNW)

Market Cap: $2.42 billion

The company specializes in solar and wind energy. Its projects contribute to 1.9% of the total power capacity in India.

14. Clearway Energy, Inc. (NYSE:CWEN)

Market Cap: $2.55 billion 

The company boasts a diversified portfolio of renewable and conventional generation assets in the US, including solar and wind power generation.

13. Risen Energy Co Ltd (SHE:300118)

Market Cap: $2.66 billion 

Risen Energy Co Ltd specializes in the research and development, production, sales, and service of solar modules, solar terminal application and integration, and photovoltaic technology.

12. Shanghai Aiko Solar Energy Co Ltd (SHA:600732)

Market Cap: $4.04 billion

The company specializes in the manufacturing of photovoltaic products, solar cells, ABC modules, battery storage, inverters, and energy management systems.

11. SolarEdge Technologies, Inc. (NASDAQ:SEDG)

Market Cap: $4.12 billion 

The company specializes in solar energy solutions, DC-optimized inverters, PV power optimization, monitoring, and energy storage solutions.

10. GCL Technology Holdings Limited (OTC:GCPEF)

Market Cap: $4.44 billion

GCL Technology Holdings Limited is a leading renewable energy company, specializing in the manufacturing of solar materials and advanced solar technologies.

9. Xinyi Solar Holdings Limited (OTC:XISHY)

Market Cap: $7.31 billion

Xinyi Solar Holdings Limited is a leading solar company, specializing in the sale and production of solar products, the development and operation of solar farms, engineering and procurement, and construction services.

8. Nextracker Inc. (NASDAQ:NXT)

Market Cap: $8.21 billion

Nextracker specializes in solar tracking systems, monitoring and control, utility-scale solar power, solar power plant performance, solar software, and risk mitigation.

7. Trina Solar Co Ltd (SHA:688599)

Market Cap: $8.22 billion

Trina Solar Co Ltd specializes in smart energy solutions, solar PV modules, and solar projects.

6. Brookfield Renewable Corporation (NYSE:BEPC)

Market Cap: $9.18 billion

The company operates and develops renewable power facilities and has $52 billion in power assets under management.

5. JA Solar Technology Co Ltd (SHE:002459)

Market Cap: $9.20 billion

JA Solar Technology Co Ltd… specializes in the manufacturing of high-functioning photovoltaic products including solar panels, PV modules, solar modules, and solar projects.

4. Enphase Energy, Inc. (NASDAQ:ENPH)

Market Cap: $16.43 billion

Enphase Energy… specializes in solar energy, solar storage, solar power, microinverters, solar panels, PV modules, solar distributors and installers, residential and commercial solar systems, solar batteries, and energy storage.

3. First Solar, Inc. (NASDAQ:FSLR)

Market Cap: $17.03 billion

The company provides solar technology solutions and produces eco-efficient solar modules.

2. Adani Green Energy Ltd (NSE:ADANIGREEN)

Market Cap: $37.42 billion 

Adani Green Energy Ltd… is a leading renewable energy company in India. It develops and operates utility-scale grid-connected solar power plants among other renewables.

1. NextEra Energy, Inc. (NYSE:NEE)

Market Cap: $117.29 billion 

NextEra Energy… is a leading utilities and renewable energy company, specializing in solar and wind energy.” End quotes.

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Can retail clients be impact investors? By David Kitai

Now there’s a particular reason I’m including this article titled Can retail clients be impact investors? It’s by David Kitai on wealthprofessional.ca. The fund appears to now be available to both US and Canadian investors. You’ll see why I’m including this article when you hear these quotes from it.

“Within the world of values based investing — which includes both ESG and socially responsible investing (SRI) — impact investing has largely been the remit of billionaires and foundations. Unlike ESG or SRI, which seek to avoid social harm in an investment portfolio, impact investing seeks to fund positive social changes. That sort of investing requires consensus on what constitutes positive change and relatively heavy involvement on the part of the impact investor, which is why it’s been largely left outside the reach of retail investors…

Late last year, Franklin Templeton Canada launched the Franklin Martin Currie Improving Society Fund, which explicitly aims to provide Canadian retail investors with an impact strategy.” End quotes.

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Other Honorable Mentions – not in any order.

1) Title: 3 Stocks That Are Capitalizing on the Shift to Renewable Energy on investorplace.com. By Muslim Farooque.

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Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast titled: “Analysts’ Sustainable Stock Picks.”

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I’ll talk to you next on April 5^th.

Bye for now.

 

© 2024 Ron Robins, Investing for the Soul