Podcast: Top Climate-Smart Stocks

Podcast: Top Climate-Smart Stocks

Top Climate-Smart Stocks includes one article with 26 global picks. Another article refers to ESG companies in ‘unassailable’ market positions.

By Ron Robins, MBA

Transcript & Links, Episode 127, April 5, 2024

Hello, Ron Robins here. So, welcome to this podcast episode 127 titled “Top Climate-Smart Stocks.” 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 2 article links below that time didn’t allow me to review here.


26 climate-smart stocks shine in new BMO screen

I’m beginning with this article from Canada, but its recommended stocks are pertinent to investors globally. It’s titled 26 climate-smart stocks shine in new BMO screen. It’s by Freschia Gonzales and found on wealthprofessional.ca. Here are some quotes from the article.

BMO Nesbitt Burns analyst Doug Morrow has launched a new ‘climate opportunities screen’ targeting stocks positioned to thrive in the fight against climate change, as reported by The Globe and Mail…

The selection process started with 432 stocks rated as outperform at BMO, evaluating them against criteria such as net-zero emissions policies, transparency in carbon emissions, and board oversight of climate targets…”

Here are the first 5 of the final 26 stocks on the list.

  • Adobe Systems (ADBE)
  • AstraZeneca (AZN)
  • Avery Dennison (AVY)
  • Baker Hughes Co. (BKR)
  • BHP (BHP).” End quotes.

For the rest of the companies go to this podcast edition’s web page at investingforthesoul.com/podcasts and click the link to this article.


5 Cheap Sustainable Stocks With Moats

The next article appeared on the renowned morningstar.com site. It’s titled 5 Cheap Sustainable Stocks With Moats and it’s by Muskaan Hemrajani and Leslie P. Norton. Now some quotes from the authors.

“These companies not only have low ESG risk scores, indicating that the companies are exposed to fewer environmental, social, and governance risks, but they are also trading at a price 50% lower than their fair values, according to Morningstar.

In addition, all five have been assigned a Morningstar Economic Moat Rating of wide or narrow by the analyst covering the stock…

Note: quoted stock prices are as of March 22, 2024.

1) Etsy ETSY

Fair Value: $140

Morningstar Rating: 4 stars

Price: $67.82

Etsy is trading at a 51% discount.

Etsy is a top-10 e-commerce marketplace operator in the US and the UK, with sizable operations in Germany, France, Australia, and Canada. The firm dominates an interesting niche, connecting buyers and sellers through its online market to exchange vintage and craft goods.

2) BorgWarner BWA

Fair Value: $72

Morningstar Rating: 5 stars

Price: $33.20

BorgWarner is trading at a 54% discount.

BorgWarner is a Tier I auto-parts supplier with three operating segments: An air management group, a drivetrain and battery systems group, and an e-propulsion segment.

3) Sirius XM Holdings SIRI

Fair Value: $7.50

Morningstar Rating: 5 stars

Price: $3.88

This stock is trading at a 48% discount.

Sirius XM Holdings consists of two businesses: SiriusXM and Pandora. SiriusXM transmits music, talk shows, sports, and news via its satellite radio network, primarily to consumers who pay a subscription fee, often tied to a vehicle. Pandora, acquired in February 2019, is a streaming music platform that offers an ad-supported radio option and a paid on-demand service.

4) Aptiv PLC APTV

Fair Value: $148

Morningstar Rating: 5 stars

Price: $78.72

This stock is trading at a 46% discount.

Aptiv is an automotive supplier. Its signal and power solutions segment supplies components and systems that make up a vehicle’s electrical system, including wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems.

5. Charter Communications CHTR

Fair Value: $550

Morningstar Rating: 5 stars

Price: $290

This stock is trading at a 46% discount.

Charter owns cable TV networks. It is the product of the 2016 merger of three cable companies: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 56 million US homes and businesses, around 40% of the country.

End quotes.


The Ethical Investor’s Dream: 7 Socially Responsible Stocks With Skyrocketing Potential

Now Investor Place has produced some interesting research articles with many ESG and sustainably oriented stock picks. Their latest article is this one titled The Ethical Investor’s Dream: 7 Socially Responsible Stocks With Skyrocketing Potential. It’s by Josh Enomoto.

1) Microsoft (NASDAQ:MSFT)

While Microsoft ranks among one of the biggest technology companies in the world… it ranked as number one on Investor’s Business Daily’s (IDB) 100 Best ESG Companies for 2023 list. Judging from its nearly 16% upside performance since the beginning of January, it’s ethical and viable…

Experts rate Microsoft a strong buy with a $470.30 average price target. That implies about 10% upside potential.

2) Alphabet (NASDAQ:GOOGL)

Another world-renowned tech giant, Alphabet came in at number 25 on IDB’s list for top ESG companies last year. Fundamentally, the company should benefit from its ownership of the Google ecosystem. Commanding an overwhelming market share of the search engine space, Alphabet probably isn’t going anywhere but up…

Alphabet carries a strong buy consensus view with a $165.37 price target, implying about 10% upside.

3) TJX Companies (NYSE:TJX)

TJX Companies is a discount retailer… it specializes in off-price apparel, shoes and accessories. It made number 22 on IDB’s list of top ESG businesses in 2023. On a fundamental note, the gradual return to normalization could see increased demand for cheap business casual attire…

Analysts rate TJX a strong buy with a $110.84 average price target, implying over 11% growth potential.

4) Air Products and Chemicals (NYSE:APD)

provides atmospheric gases, process and specialty gases, equipment, and related services throughout the world. On IDB’s ESG list last year, Air Products came in at number 18. To be fair, it’s one of the riskier ideas on this list, with shares losing 13% year-to-date…

Air Products and Chemicals also carries a moderate buy view with a $272 price target, implying 15% upside potential. If you want a potentially discounted opportunity among socially responsible stocks, this might be it.

5) Mondelez (NASDAQ:MDLZ)

A multinational confectionary, food, beverage and snack company, offers everyday relevance for investors and consumers. And if the economy gets a bit wobbly, Mondelez should rise as a beneficiary of the trade-down effect. Notably, Mondelez ranked as number 15 on IDB’s top ESG list…

Experts rate Mondelez a strong buy with an $83.47 price target.

6) Bunge (NYSE:BG)

A critically important name among socially responsible stocks, Bunge operates as an agribusiness and food company worldwide. It conducts operations through four segments: Agribusiness, Refined and Specialty Oils, Milling and Sugar and Bioenergy. On IDB’s ESG list, Bunge came in at number 11…

Analysts are optimistic with Bunge’s chart performance, rating it a moderate buy with a $115.30 target. That implies more than 16% growth potential.

7) Adobe (NASDAQ:ADBE)

Another top-tier technology enterprise, Adobe is a software giant. It’s perhaps best known for its Photoshop program and other products aimed at the creatives community. Because of the rise of the gig economy, Adobe could be more important than many people realize. As for its inclusion as one of the socially responsible stocks, Adobe ranked as number 14 in IBD’s top ESG list…

Analysts rate Adobe a moderate buy with a $620.63 target, implying over 24% upside potential.”

End quotes.


Benefits of Sustainable Investing and 3 Companies Paving the Way!

This next article comes from a site I haven’t seen before – techbullion.com. Its author, Adriaan Brits, offers some good insights backing his stock picks. It’s titled Benefits of Sustainable Investing and 3 Companies Paving the Way! Here’s some of what Mr. Brits says about his picks.

1) AGCO: Advancing Agricultural Sustainability

AGCO, an American agricultural machinery manufacturer, has emerged as a compelling option for sustainable investing. AGCO integrates sustainability into its core business strategy, emphasizing innovation and technology to make agriculture more efficient, productive, and environmentally friendly. 

2) ICL Group: Promoting Sustainable Agriculture and Nutrition 

ICL Group, a leading global specialty minerals company, and one of the largest fertilizer manufacturers in the world, offers another attractive opportunity for sustainable investment. ICL’s operations center around producing a sustainable food supply, focusing on soil health, plant nutrition, and food quality. 

3) John Deere: Pioneering Precision Agriculture 

John Deere, a familiar name in agricultural machinery, has been pushing boundaries to make farming sustainable and efficient. The company’s focus on innovations to improve machinery efficiency and promote agriculture makes it a promising prospect for sustainable investors.”

End quotes.


Why I Keep Loading Up on These High-Yielding, Renewable-Energy Dividend Stocks

Lastly, is another article by an analyst who is frequently covered in these podcasts: Matt DiLallo at The Motley Fool. This article is titled Why I Keep Loading Up on These High-Yielding, Renewable-Energy Dividend Stocks and it’s seen on finance.yahoo.com. Quotes…

“The transition to renewable energy is one of the biggest investment megatrends of our lifetime. Over the coming decades, the world needs to invest trillions of dollars to decarbonize the economy. That should power above-average growth for companies focused on those sectors in years to come.

I want to cash in on this megatrend. That’s why I’ve been loading up on renewable-energy stocks. I recently bought a few more shares of NextEra Energy Partners and Brookfield Renewable. Here’s why I believe they could generate powerful total returns over the long term.

1) NextEra Energy Partners (NYSE: NEP)

NextEra Energy Partners has hit a speed bump in recent years. Surging interest rates have driven up its cost of capital. Not only have borrowing costs risen, but its stock price has lost nearly 70% of its value from the peak in early 2022, driving its dividend yield up to 13%. That has made it more difficult to secure new funding at an attractive rate to refinance existing financing as it matures and obtain new capital for acquisitions. Because of that, the company has had to alter its strategy…

If NextEra Energy can execute its plan, it could produce powerful total returns. It would pay a very lucrative and growing dividend. On top of that, it has significant stock-price appreciation potential as its share price recovers. While there’s a high risk of a dividend cut due to its high payout ratio, a reduction could accelerate its recovery by enabling it to retain more cash to fund growth and strengthen its balance sheet. This high upside potential is why I continue loading up on its stock.

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

Brookfield Renewable has gotten caught up in the growth concerns weighing on NextEra Energy Partners. Its shares are more than 55% below their high in 2022. That pushed its dividend yield up over 6%.

However, its issues were more a matter of timing than problems with financing. The company grew its funds from operations by 7% per share last year despite rising rates and supply chain issues. That was slightly below its target of 10%, largely due to later-than-expected transaction closings in the fourth quarter. It also had one that didn’t close because shareholders voted against the deal…

Brookfield’s dividend income and earnings growth alone could power total annual returns in the mid-teens from here. Add in a recovery in its stock price, and the upside potential is even more significant.”

End quotes.


One Other Honorable Mention

Title: Strong Buy Renewable Energy Stocks to Add to Your Q2 Must-Watch List on investorplace.com. ByVandita Jadeja.

One Article from Australia

Title: 10 ASX Cleantech Stocks (Updated 2024) on nasdaq.com. By Melissa Pistilli.


Ending Comment

Well, these are my top news stories with their stock and fund tips — for this podcast titled: “Top Climate-Smart Stocks.”

Now, please be sure to click the like and subscribe buttons on Apple Podcasts, Google Podcasts, or wherever you download or listen to this podcast. That helps bring these podcasts to others like you.

And please click the share buttons to share this podcast with your friends and family. Let’s promote ethical and sustainable investing as a force for hope and prosperity in these deeply troubled times!

Contact me if you have any questions.

Thank you for listening.

I’ll talk to you next on April 19th.

Bye for now.


© 2024 Ron Robins, Investing for the Soul

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