Socially Responsible Stocks To Buy includes the following articles: “10 Best Socially Responsible Stocks to Buy According to Analysts,” by Fahad Saleem; “Top Infrastructure Stocks – From An Engineer’s Perspective,” by Financial Engineering; “Top Utilities Stocks for May 2023, by Noah Bolton; “3 Sustainable Investing Stocks to Buy for Socially Responsible Gains,” by Joel Baglole

Transcript & Links, Episode 106, May 19, 2023

Hello, Ron Robins here. So, welcome to my podcast episode 106 titled “Socially Responsible Stocks To Buy.” 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. And look at my newly totally revised website at investingforthesoul.com!

So, 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.

Now if any terms are unfamiliar to you, simply Google them.

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 so that I can get as many companies covered as possible in the time allowed. 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 are also 7 article links below that time didn’t allow me to review them here.

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1) Socially Responsible Stocks To Buy

I’m starting with this article titled 10 Best Socially Responsible Stocks to Buy According to Analysts by Fahad Saleem. Article found on insidermonkey.com. Here are a few of Mr. Saleem’s quotes on each of his picks.

“For this article we first scanned the Vanguard FTSE Social Index Fund Investor Shares (VFTSX) which seeks to track the performance of the FTSE4Good US Select Index… The fund… uses ESG criteria to screen stocks. We picked 10 stocks which have a strong upside potential based on their average analyst price targets. 

10. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 62

Analyst Price Target: $340

The Home Depot also mentions its ESG goals and ESG-related plans on its website.

9. Costco Wholesale Corporation (NASDAQ:COST)

Hedge Fund Holders: 66

Analyst Price Target: $545 

Last year, Costco voted in favor of a proposal put forward by Green Century Capital Management which suggested that the company should set targets for reaching net-zero greenhouse gas (GHG) emissions.

8. NIKE, Inc. (NYSE:NKE)

Hedge Fund Holders: 71

Analyst Price Target: $138

NIKE’s slogan in the ESG space is ‘Move to Zero,’ which shows its commitment to becoming carbon neutral.

7. Pfizer Inc. (NYSE:PFE)

Hedge Fund Holders: 75

Analyst Price Target: $46.50

Pfizer plans to achieve the Net-Zero Standard by 2040.

6. Tesla Inc. (NASDAQ:TSLA)

Hedge Fund Holders: 91

Analyst Price Target: $186.20

Despite short-term headwinds, analysts believe Tesla has a lot of room to run.

5. NVIDIA Corporation (NASDAQ:NVDA)

Hedge Fund Holders: 106

Analyst Price Target: $355

NVIDIA Corporation has pledged to use advanced technologies to fight the climate change problem… NVIDIA plans to source 65% of its global electricity from renewable sources by 2025.

4. UnitedHealth Group Inc. (NYSE:UNH)

Hedge Fund Holders: 110

Analyst Price Target: $600

UnitedHealth Group Inc.’s ESG risk score is 15.3, according to Sustainalytics, which comes under the low risk category.

3. Visa Inc. (NYSE:V)

Hedge Fund Holders: 177

Analyst Price Target: $300

A strong ESG score and investments in the ESG space makes Visa Inc. a key part of the Vanguard FTSE Social Index Fund.

2. Alphabet Inc. (NASDAQ:GOOG)

Hedge Fund Holders: 209

Analyst Price Target: $130 

Alphabet Inc. is famous for investing heavily into the ESG space and environment-related projects.

1. Microsoft Corporation (NASDAQ:MSFT)

Hedge Fund Holders: 259

Analyst Price Target: $304

Microsoft Corporation has secured solid ESG ratings from several independent agencies because of its investments in the ESG space and sustainable business practices.” End quotes

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2) Socially Responsible Stocks To Buy

Now, an article that might interest many of you. It’s titled Top Infrastructure Stocks – From An Engineer’s Perspective, by Financial Engineering. Seen on seekingalpha.com. Here’re some comments from the article.

“1. American Tower Corporation (AMT)

(Is) one of the largest global players in physical communications assets, most notably in macro cell towers and now data centers…

The critical necessity for American Tower Corporation’s assets will be at the heart of what is being dubbed as ‘Industrial Revolution 4.0’ which is being discussed in regards to 5G and the Internet of Things, IoT…

With the implementation of 5G and IoT we have the capability to significantly reduce traffic accidents, drastically improve manufacturing operations for greater flexibility in meeting global demands, and greatly improve our efficient use of resources with improved distribution networks of energy sources.

2. Union Pacific Corporation (UNP)

Train operations have greatly improved in recent years through a revolutionary change in the approach to rail operations known as precision scheduled railroading (or PSR)… the benefits of PSR are significant to rail operations… PSR changed the focus of traditional rail operations from full train operations to individual train car operations… In a recent government report it is evidenced that PSR has led to a drastic decrease in operating ratios (operating expenses as a proportion of revenues) from 2011-2021…

3. DTE Energy (DTE).

The main reason for including this company among the most important is due to the increasing electrification of our world… The vast majority of DTE’s revenues are derived from its 2.2 million electric customer connections, the undisputed leader in the state of Michigan.

… Detroit (Michigan) automakers own roughly 10-15% of global market share for vehicle sales and closer to 40% of the United States market share. If DTE is successfully able to expand and sufficiently meet the energy demands of the EV ramp-up in Detroit it will be pivotal in proving the viability of EV adoption not just in the United States but for the rest of the world as well…

While each of these companies may not provide home run returns witnessed by tech in the past several decades, I’d be surprised if they do not provide solid, healthy returns and stability to a portfolio. If these corporations and their peers suffer substantial losses or fail in the near future, we most likely will have bigger concerns as a society than the performance of these stocks.” End quotes.

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3) Socially Responsible Stocks To Buy

A favorite of older ethical investors is utility stocks for their stability of returns. This is a good piece about them. It’s titled Top Utilities Stocks for May 2023, by Noah Bolton. Article on investopedia.com. Here’s some of what Mr. Bolton says about his picks.

“These are the utilities stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

• Enel Chile S.A. (ENIC): Enel is a Chilean-based electricity provider. The company creates electricity from solar, wind, and geothermal power plants… 12-Month Trailing P/E Ratio 2.8.

• Brookfield Renewable Corp. (BEPC): Brookfield Renewable owns and operates pure-play renewable energy facilities focusing on wind, solar, and hydroelectric power. Brookfield Renewable and EIG Consortium entered a binding agreement in March to acquire 100% of Origin Energy Ltd.’s energy markets business, ‘Australia’s largest integrated power generator and energy retailer…’ 12-Month Trailing P/E Ratio 4.2.

• Pampa Energia S.A. (PAM): Pampa Energia is an integrated energy company based in Argentina operating hydroelectric plants, thermal plants, and wind farms. The company also explores and produces natural gas, oil, and various petrochemicals… 12-Month Trailing P/E Ratio 4.3.

Fastest-Growing Utilities Stocks

These are the top utilities stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and most recent quarterly YOY earnings-per-share (EPS) growth…

• Altus Power Inc. (AMPS): Altus Power is a clean electrification company that services commercial, industrial, and public industries. At the end of 2022, Altus Power reached an agreement with True Green Capital Management LLC to acquire 220 MW of solar assets for $293 million… EPS Growth 600%. Revenue Growth 24%.

• Cadiz Inc. (CDZI): Cadiz is a water treatment company that offers clean water resources for agricultural development. Note Cadiz doesn’t have an EPS growth figure… because the company reported negative EPS in the most recent quarter… Revenue Growth 304%.

• Capital Power Corp. (CPX.TO): Capital Power owns and operates 29 renewable energy facilities located throughout North America… Net income in the first quarter more than doubled from the year before… EPS Growth 148. Revenue Growth 153%.

Utilities Stocks With the Most Momentum

• Genie Energy Ltd. (GNE): Genie is an energy provider that supplies electricity and natural gas for residential and business customers. The company also operates a solar energy business segment. In late March, Genie Renewables acquired the rights to a 6.25-megawatt solar generation site in upstate New York. Genie’s revenue increased 23% year-over-year in the first quarter of 2023… 12-Month Trailing Total Return 129%.

• Cadiz Inc.: See company description (previously)… 12-Month Trailing Total Return 129%.

• Enel Chile S.A.: See company description (previously)… 12-Month Trailing Total Return 118%.” End quotes

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4) Socially Responsible Stocks To Buy

Lastly, we have this recommendation titled 3 Sustainable Investing Stocks to Buy for Socially Responsible Gains by Joel Baglole. Found it on investorplace.com. Now a few comments by him.

“1. General Electric (NYSE:GE)

The company is pushing further into renewable energy, namely with GE Vernova… GE Vernova develops wind turbines, hydropower generation and energy storage solutions.

GE stock has gained 73% in the past 12 months, including a 56% increase this year.

2. Ford Motor (NYSE:F)

Ford Motor which is spending more than $50 billion in an effort to produce 2 million electric vehicles a year by the end of 2026… And the company pays a quarterly dividend of 15 cents a share for a yield above 5%.

3. Albemarle (NYSE:ALB)

(Is) the largest producer of lithium for EV batteries in the world… Over the past five years, Albemarle stock has gained 78%. In the past 12 months, however, the company’s share price has come down 10%. This is mainly due to shifting demand in China, where the country’s electric vehicle production has been repeatedly interrupted due to Covid-19 lockdowns.” End quotes.

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Other Honorable Mention – not in any order

1. Title: Atlantica Sustainable Infrastructure: Revolutionizing the Energy Industry with Sustainable Investments on beststocks.com. By Roberto Liccardo.

2. Title: This solar energy tech stock could surge 50%, Guggenheim says on cnbc.com. By Hakyung Kim.

3. Title: 3 Sustainable Investing Stocks to Buy on investorplace.com. By Joel Baglole.

4. Title: Top Alternative Energy Stocks for Q2 2023 on investopedia.com. By Zaw Thiha Tun.

5. Title: 3 Alternative Energy Stocks to Watch Amid Insufficient Hydrogen Funding on zacks.com. By Aparajita Dutta.

6. Title: Water and investing – the risks, opportunities and why it matters on www.hl.co.uk. By Laura Hoy.

7. Title: 7 Alternative Energy Stocks to Watch in 2023 on investorplace.com. By Muslim Farooque.

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Ending Comment

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© 2023 Ron Robins, Investing for the Soul