Renewable Energy Stock Picks — and More, covers investments in renewable energy, Canadian sustainable companies, water investments, women’s empowerment, plus…

Transcript & Links, Episode 134, July 12, 2024

Hello, Ron Robins here. So, welcome to this podcast episode 134 titled “Renewable Energy Stock Picks — and More.” 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 are also 3 article links below that time didn’t allow for me to cover here.

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These 50 Canadian corporations are betting big on green

Now nearly all the articles covered in this episode relate to renewable energy investments – except this one. Though it’s about Canadian companies, many of them will be of interest to ethical investors globally. Hence, I’m beginning with it and it’s titled These 50 Canadian corporations are betting big on green. The editorial is by Rick Spence and appears on corporateknights.com.

“Now in its 23rd year, the Best 50 helps track how Canadian businesses are meeting the low-carbon and green-transition challenge – as well as where they’re getting stuck in the process…

The companies that made the Best 50 are mostly corporations with more than $1 billion in annual revenues, as well as Crown corporations, large co-ops and members of the S&P/TSX Renewable Energy and Clean Technology Index. What sets them apart is their commitment to doing business differently – they’re companies that derive significant revenue from greener products and services, invest in increasingly sustainable projects, and prioritize equity in their operations.

Crucially, the companies’ average sustainable investment (as a percentage of total investment) hit 58.9% this year, up 9% over last year’s 49.7% – that’s compared to just 8.4% for the average large Canadian corporation.”

End quotes.

Among the top public companies on the list are Brookfield Renewable Partners LP (NYSE:BEP), Wheaton Precious Metals Corp. (WPM), Cascades Inc. (CAS.TO), and BCE Inc. (BCE.TO).

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1) Renewable Energy Stock Picks — and More

So, back to the renewable energy sector with this first article titled 3 Best Renewable Energy Stocks to Buy in July 2024, According to Analysts. It’s by Sheryl Sheth and seen on nasdaq.com. Here are some of her comments.

“1. Fluence Energy (NASDAQ:FLNC)

is engaged in empowering the global clean energy transition by providing energy storage solutions. The company also offers cloud-based software solutions for renewables and energy storage. Importantly, Fluence Energy has the backing of two industry-leading companies, Siemens (DE:SIE) and AES Corp. (NYSE:AES)…

On TipRanks, Fluence Energy stock has a Strong Buy consensus rating based on 12 Buys and three Hold recommendations. The average Fluence Energy price target of $30.21 implies an impressive 83.9% upside potential from current levels. Meanwhile, Fluence Energy shares have plunged 31.1% so far in 2024.

2. ReNew Energy Global (NASDAQ:RNW)

India-based ReNew Energy Global is one of the largest renewable companies in the world, with a clean energy portfolio of roughly 15.6GW (gigawatts) on a gross basis as of May 31. The company provides innovative and sustainable decarbonization solutions for corporates. Plus, it engages in the production of wind, solar, and hydropower and manufactures solar PV (photovoltaic) cells…

With six unanimous Buy ratings, ReNew Energy Global stock commands a Strong Buy consensus rating on TipRanks. The average ReNew Energy Global price target of $8.82 implies 45.1% upside potential from current levels. Year-to-date, ReNew Energy Global shares have lost 19.5%.

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

claims to own one of the largest renewable energy portfolios in the U.S. The company has approximately 6,200 net MW (megawatts) of installed wind, solar, and battery energy storage systems. Plus, it owns another 2,500 net MW of environmentally-sound, highly efficient natural gas generation facilities. The company believes in rewarding shareholders with generous dividend payments…

With six Buys and one Hold rating, Clearway Energy stock has a Strong Buy consensus rating on TipRanks. The average Clearway Energy Class C price target of $31 implies 27.6% upside potential from current levels. Clearway Energy shares have declined 8.4% so far in 2024.”

End quotes.

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2) Renewable Energy Stock Picks – and More

Also, related to renewable energy is this article titled 3 ESG Funds to Buy As Sustainable Investing Gathers Steam. It’s by Zacks Equity Research and found at au.sports.yahoo.com. Here are some comments on their picks from the Zack’s analysts.

“All of these funds carry a Zacks Mutual Fund Rank #2 (Buy). In addition, the minimum initial investment for these funds is within $5,000.

We expect these funds to outperform their peers in the future… Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

1. Fidelity Select Environment and Alternative Energy Portfolio (FSLEX)

The fund invests… in securities of companies mostly engaged in activities related to alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies or other environmental support services. The non-diversified fund invests in U.S. and non-U.S. issuers alike…

Fidelity Select Environment and Alternative Energy Portfolio has an annual expense ratio of 0.85%, which is below the category average of 1.09%. It has returned 4.9% over the past five years.

2. Parnassus Core Equity Fund – Investor Shares (PRBLX)

aims for capital growth and current income through its investments… (It)… invests in large-capitalization companies in the United States that have long-term competitive advantages and relevancy, quality management teams and positive performance in the ESG criteria…

Parnassus Core Equity Fund – Investor Shares has an annual expense ratio of 0.86%, which is below the category average of 0.93%. It has returned 9.1% over the past five years.

3. TIAA-CREF Core Impact Bond Fund Retail Class (TSBRX)

The fund invests (most of) … its assets in bonds. TIAA-CREF Core Impact Bond Fund Retail Class gives particular consideration to environmental, social and governance criteria…

TIAA-CREF Core Impact Bond Fund Retail Class has an annual expense ratio of 0.65%, which is below the category average of 0.80%. It has returned 3.2% over the past five years.”

End quotes.

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3) Renewable Energy Stock Picks — and More

And here is my next renewable energy article. It’s titled The 3 Smartest Renewable Energy Stocks to Buy With $500 Right Now and is by Rich Duprey and found on investorplace.com. Now some brief quotes from Mr. Duprey on each of his picks.

1. NextEra Energy (NYSE:NEE)

is the first renewable energy stock that investors should consider buying. It is the world’s largest generator of renewable energy from the wind and sun and a top-tier stock in battery storage. At the end of 2023, NextEra had approximately 72 gigawatts (GW) of total capacity in its portfolio. Of that amount, half or 36 GW came from renewables, some 70% more than its nearest competitor with wind power represented as two-thirds of the total renewable capacity…

NextEra Energy will be one of the top renewable energy stocks to buy that leads the way.

2. Brookfield Renewable Partners (NYSE:BEP)

is the leading provider of hydropower in the country. It operates as one of the world’s largest publicly traded platforms for renewable power and decarbonization solutions.

Yet where 85% of Brookfield’s portfolio was once hydropower generation, today it stands at about 50% as the company grew through mergers and acquisitions…

Although it primarily has projects in North America and Latin America, more recently as the Neoen acquisition shows, it is expanding more towards Europe and Asia.

Brookfield Renewable Partners is a renewable energy stock to buy because of its hydro sector dominance that cannot be easily, or readily, replicated.

3. First Solar (NASDAQ:FSLR)

is the world’s leading manufacturer of thin-film solar panel technology and a pure-play in the solar panel space. It focuses on the U.S. and Indian markets where the greatest booking potential lays, particularly in the domestic utility-scale market…

First Solar has built a solid financial foundation and a strong balance sheet to weather future storms. Its thin-film cadmium telluride technology is distinctive in the industry that benefits from its simple manufacturing process.

First Solar should also benefit from the Biden administration’s protectionist trade policies. It recently imposed high-import barriers on cheaper Chinese panels.”

End quotes.

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4) Renewable Energy Stock Picks — and More

This last article takes us away from renewable energy. It’s titled 6 impact investing firms and funds that are top picks from U.S. News. The article’s authors are staff at equities.com. Now some brief quotes from the article.

“Impact investing firms

1. Eaton Vance Corp. (EV)

When this investment management firm bought Calvert Investment Management in 2016, it acquired a company that’s been involved in responsible investing for years. It launched an ESG bond portfolio in 1987 and a non-U.S. ESG portfolio in 1992. In 1995, it debuted Calvert Impact Capital. Now, Calvert Impact offers notes targeting community investment, carbon reduction and a more inclusive banking system. It also offers several small business recovery funds.

2. Impax Asset Management Group PLC. (IPXAF)

This is another firm that grew its impact investing offerings through an acquisition. In 2017, it announced that it would buy Pax World Management. Impax has worked with the World Bank to structure an impact bond to finance 300,000 water purifiers for schools and other institutions in Vietnam…

3. Trillium Asset Management

This ESG-focused fund provider offers impact investing strategies targeting sustainable agriculture, low-income housing, job creation and retention, Native American community development, financial services that help people avoid predatory payday lenders, environmental sustainability, development of domestic and international communities and child care. It typically directs investments to nonprofit loan funds or development banks and credit unions targeting historically underserved sections of society.

Impact investing funds

1. First Trust Nasdaq Clean Edge Green Energy Index Fund (QCLN)

This alternative energy fund tracks an index of securities issued by companies involved in advanced materials, energy intelligence, renewable electricity generation and renewable fuels, and energy storage and conversion. The $702 million fund has an expense ratio of 0.59%, or $59 per year for every $10,000 invested. It also paid a 30-day SEC yield of 1.2% as of the end of May. (It)… is up more than 60% over the past five years, though the last few years have been rough going for the fund.

2. Invesco Water Resources ETF (PHO)

This ETF tracks an index of companies involved in the conservation and purification of water for homes, businesses and industries. Most of its holdings focused on resource security and basic needs, with a smaller percentage allocated to climate action. The $2.1 billion fund has an expense ratio of 0.6% and is up more than 80% over the past five years.

3. YWCA Women’s Empowerment ETF (WOMN)

This fund hits on a theme that is big in the impact investing community: women’s empowerment. (It)… tracks an index of companies that ‘have strong policies and practices in support of women’s empowerment and gender equality,’ the fund’s website says. Impact Shares donates all the net advisory profits from (the fund) to the YWCA. The $56 million ETF has an expense ratio of 0.75% and is up more than 74% over the past five years, beating its category average.”

End quotes.

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Honorable Mentions that time didn’t allow me to cover here

1. Title: 7 Investments That Make You Feel Good While You Make Money on aol.com. By Laura Bogart.

2. Title: Top 10: Climate Tech Unicorns on sustainabilitymag.com. By Marcus Law.

Honorable Mention From the UK

1. Title: Top 10 most-purchased ETFs in June 2024 on ii.co.uk. By Sam Benstead.

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Ending Comment

Well, these are my top news stories with their stock and fund tips — for this podcast titled: “Renewable Energy Stock Picks — and More.”

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Bye for now.

© 2024 Ron Robins, Investing for the Soul