Podcast: Sustainable and Infrastructure Stocks Analysts Adore
Sustainable and Infrastructure Stocks Analysts Adore podcast: Covers stocks related to renewable energy, data infrastructure, waste management, retail, and others.
Transcript & Links, Episode 131, May 31, 2024
Hello, Ron Robins here. So, welcome to this podcast episode 131 titled “Sustainable and Infrastructure Stocks Analysts Adore.” 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 4 article links below that time didn’t allow me to review them here.
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5 sustainable UK stocks that Fools love
The stock picks in my first article, though from the UK, are likely available and applicable to investors globally. It’s titled 5 sustainable UK stocks that Fools love. By Fools it’s referring to the famous Fools investors, site, and is written by the The Motley Fool Staff and found at fool.co.uk.
Here are some quotes from the article.
“1. Croda International (LSE:CRDA)
By Oliver Rodzianko.
What it does: Croda International sustainably creates speciality chemicals to enhance products in a wide range of industries.
Croda International has ‘committed to becoming the most sustainable supplier of innovative ingredients on the planet’…
Not only is the company leading in environmental preservation efforts, but it’s also making a handsome profit in the process. Over the past 10 years, the shares have grown 78% in price. It also has a net margin of 10%, which is great for its industry…
Now, I must mention that in the past, it has faced legal action over negative effects on the environment from a plant it operated. There’s some chance that something like this could happen again, which would be bad reputationally.
But overall, this company looks very strong to me. I appreciate its efforts in getting toward a cleaner, safer work culture.
2. Gore Street Energy Storage Fund (LSE:GSF)
By Royston Wild.
What it does: Gore Street Energy Storage Fund invests in power retention assets across Europe and the US.
This small cap invests in utility-scale power storage assets with the aim of providing regular dividend income to its shareholders.
Today its objective is to provide annual dividends equivalent to 7% of net asset value (NAV) per ordinary share, or 7p per share, whichever is higher. It’s a strategy that creates a chunky 5.1% dividend yield for the current financial year…
At current prices I think the trust is worth serious consideration. At 60.3p per share, it trades at a whopping 43% discount to its estimated NAV.
3. Renewi (LSE: RWI)
What it does: Renewi is a European waste management company that uses most of the waste collected for recycling or energy production.
The share price has… grown by an impressive 72% over the past five years.
Renewi shares trade on a price-to-earnings ratio of 12, which I think looks cheap. Whether that turns out to be the case depends partly on Renewi maintaining or growing its earnings. The past couple of years have been good, however the track record is inconsistent.
The business is highly cash generative but has a net debt that outstrips its market capitalisation. That is a risk to long-term profitability.
I like the business’ clear strategic focus, its extensive operational footprint and its proven business model. I see long-term revenue growth opportunities. If the company can reduce its indebtedness, I think those revenues provide a solid basis for profitability.
3. Tesco (LSE:TSCO)
What it does: British multinational high street supermarket chain selling groceries and general merchandise.
Founded in London in 1919, Tesco is now one of the largest retailers in the world…
Overall, it scores higher than most of its competitors when it comes to ESG. I think it strikes a good balance of committing to realistic sustainability efforts without threatening its bottom line.
4. The Renewables Infrastructure Group (LSE: TRIG)
By Ben McPoland.
What it does: The Renewables Infrastructure Group is an investment trust with a portfolio of onshore and offshore wind farms and solar parks in the UK and Europe.
[It’s] a FTSE 250 stock that I’ve been buying opportunistically over the past year. It’s down 27% in two years.
One silver lining to this falling share price is that the dividend yield now stands at 7.3%. And the forecast yield for this financial year is a very attractive 7.6%.
Beyond the passive income potential, what I like here is the diversification in both assets (wind and solar farms and battery storage assets) and geography (six countries)…
The shares are trading at a whopping 23.1% discount to the estimated value of the firm’s assets. Overall, I think there is a lot of value on offer here for patient investors.”
End quotes.
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3 Data Infrastructure Stocks Poised to Soar on Skyrocketing Demand
My second article appeared on the highly productive analyst site investorplace.com. It’s titled 3 Data Infrastructure Stocks Poised to Soar on Skyrocketing Demand by Larry Ramer. Now some quotes from that article.
“1. Akamai (NASDAQ:AKAM)
announced that its content delivery network would start offering cloud-computing services. So, it seems that the company is turning into a de facto owner and operator of datacenters…
With Akamai becoming a datacenter operator and benefiting from competitive advantages compared to most existing datacenters, its long-term outlook appears bright.
Akamai has a low forward price-earnings ratio of 13.6 times.
2. Vertiv (NYSE:VRT)
provides monitoring systems and power management products for datacenters. As a result, the company is ideally positioned to get a big boost from the proliferation of datacenters.
Last quarter the company’s orders soared 60% versus the same period a year earlier, bringing its backlog to a huge $6.3 billion. Further, its operating profit climbed 42% year-over-year. And if the firm’s adjusted operating profit comes in at the midpoint of its guidance range, the metric will increase 28% compared with 2023. The company is also benefiting from AI-driven demand.
Last month, prominent investment bank Oppenheimer started coverage of Vertiv stock with a $96 price target and an ‘outperform’ rating. Oppenheimer referred to Vertiv as an AI infrastructure player…
Vertiv’s strong financial results and powerful, positive catalysts make it one of the top data infrastructure stocks to buy.
3. Arista Networks (NYSE:ANET)
sells datacenter hardware, such as switches, routing products and VPNs.
The company is well-positioned to gain market share in the $45 billion Ethernet network switches market. Its switches are able to integrate more easily into the most advanced chips than Cisco’s (NASDAQ:CSCO) switches…
Also importantly, Arista has a market-leading 35% share of the high-speed switching market, which are becoming much more prevalent in datacenters. Moreover, the latter trend is expected to intensify in the coming years.”
End quotes.
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2 Renewable Energy Stocks That Could Put You in the Green
The third article is back to everyone’s favorite sector with the title 2 Renewable Energy Stocks That Could Put You in the Green. It’s by Demetris Afxentiou and found on msn.com. Now some of what he says about his picks.
“1. Innergex Renewable Energy (TSX:INE)
is one of those stocks that go unnoticed by investors…
Innergex operates a portfolio of 85 facilities with a generating capacity of over 4,200MW. The company also has a backlog of projects in various stages of development comprising over 9,300MW of capacity… Innergex has taken an aggressive stance on expansion.
Innergex has operations across North America, South America, and Europe. In terms of facilities, Innergex’s portfolio comprises hydro, wind, and solar elements. While its portfolio of facilities also includes battery energy storage systems…
Despite the company’s aggressive growth and juicy dividend (more on that in a second), Innergex’s stock is down 25% year to date…
Still, the company remains a stellar long-term pick that also boasts a healthy 5.89% [dividend yield?], making it a great option for growth and income-seeking investors alike.
2. Brookfield Renewable Partners (TSX:BEP.UN)
is an intriguing option worthy of mention.
Brookfield Renewable currently has operations across 20 countries, boasting a well-diversified portfolio of wind, solar, and hydro facilities across those markets…
That revenue stream is backed by long-term regulated contracts which often span decades. The company is also expecting to continue growing its portfolio through rate increases and expansion.
Turning to income, Brookfield offers investors a juicy 5.22% yield. This fact, along with the expected growth of the renewable energy market alone, makes Brookfield a superb buy-and-forget candidate for almost any portfolio
Throw in the substantial discount on the stock right now, which shows a 30% drop over the trailing 12-month period, and you have a great discounted buy.”
End quotes.
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What are the best solar companies of 2024?
And in the same theme is this article titled What are the best solar companies of 2024? It’s by Tom Horton and found at cbsnews.com.
“The best solar companies of 2024 offer quality equipment, budget-friendly financing options, and top-notch customer service. Take a look at our top picks below.
- Best overall: SunPower
- Best high-quality: Palmetto Solar
- Best referral program: Blue Raven Solar
- Most flexible financing options: Sunrun
- Most affordable: Tesla”
End quotes.
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Responsible Investing, Rewarding Returns: 3 ESG Stocks to Feel Good About
And my last article is this one titled Responsible Investing, Rewarding Returns: 3 ESG Stocks to Feel Good About. It’s by Josh Enomoto and again found on investorplace.com. Here are some of Mr. Enomoto’s comments on his picks.
“1. Applied Materials (NASDAQ:AMAT)
Per its public profile, the company engages in the provision of manufacturing equipment, services and software to the semiconductor, display and related industries. Analysts rate shares a consensus moderate buy with a $234.91 price target, implying about 11% upside potential.
What makes Applied one of the ESG stocks to buy is the underlying efforts toward sustainability…
In the past four quarters, its average positive earnings surprise came out to 8.15%. For fiscal 2024, covering experts anticipate a rather slow year. However, for fiscal 2025, EPS could rise to $9.53 on sales of $29.65 billion.
2. Target (NYSE:TGT)
As a general merchandise retailer, it has evolved into a one-stop shop. Many if not most of its stores offer apparel, jewelry and accessories, shoes, beauty and personal care products, electronics, groceries and several other home goods categories.
A mainline initiative of the company centers on inclusion and diversity efforts… Some of the company’s efforts have aroused criticism yet it maintains its commitment.
The current fiscal year may be a challenging one. While EPS may rise to $9.43 (from last year’s $8.94), revenue might only reach $107.13 billion. That’s down slightly from the prior year. Still, looking out to the next 12-month cycle, EPS could improve to $10.52 on revenue of $111.1 billion. Thus, Target is one of the ESG stocks to buy.
3. Prologis (NYSE:PLD)
is structured as a real estate investment trust. According to its corporate profile, Prologis the global leader in logistics real estate with a focus on high-barrier, high-growth markets. Analysts rate Prologis stock a consensus strong buy with a $130.80 price target, implying over 17% upside potential…
Financially, the company has enjoyed an impressive track record over the past four quarters. During this cycle, the average positive earnings surprise clocked in at 26.88%. For fiscal 2024, analysts anticipate revenue to reach $7.65 billion. That’s up 12.2% from last year’s print of $6.82 billion. It’s an intriguing idea for ESG stocks to buy.”
End quotes.
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Honorable Mentions that time didn’t allow me to cover here.
1. Title: Top 10: ESG Fund Managers on sustainabilitymag.com. By Charlie King.
2. Title: Is First Solar, Inc. (NASDAQ:FSLR) the Best Alternative Energy Stock to Buy Now? On yahoo.com. By Meerub Anjum.
3. Title: Is Enphase Energy Inc. (NASDAQ:ENPH) the Top Alternative Energy Stock Pick of Analysts? On yahoo.com. By Meerub Anjum.
4. Title: The best solar companies of 2024 on cnn.com. By Tony Carrick, Roxanne Downer, and Alora Bopray.
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Ending Comment
Well, these are my top news stories with their stock and fund tips — for this podcast titled: “Sustainable and Infrastructure Stocks Analysts Adore.”
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© 2024 Ron Robins, Investing for the Soul
