PODCAST: Great ESG Stocks for Your Portfolio

Great ESG Stocks for Your Portfolio. Stocks include Procter & Gamble, Texas Instruments, C.H. Robinson Worldwide, Teladoc, Nvidia, Adobe, Microsoft Inc., ChargePoint Holdings Inc., Li Auto Inc., FuelCell Energy Inc., Ford Inc., Facedrive, Shopify Inc., Polaris Infrastructure, Telus Corporation, Shaw Communications Inc., Magna International, Enphase Energy Inc., Canadian Solar, First Solar, Proterra, Vestas Wind Systems.

PODCAST: Great ESG Stocks for Your Portfolio

Transcript & Links, Episode 62, July 16, 2021

Hello, Ron Robins here. Welcome to podcast episode 62 published on July 16, titled “Great ESG Stocks for Your Portfolio” — and presented by Investing for the Soul. investingforthesoul.com is your site for vital global ethical and sustainable investing news, commentary, information, and resources.

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

Now, just a reminder. I do not evaluate any of the stocks or funds mentioned in this podcast. Furthermore, if you’re concerned about the ESG and sustainability ratings of any stock or fund included in this podcast, check your broker’s site for such information.

If your broker doesn’t have this information, signup for free with Morningstar and you can gain access to company and fund ESG-sustainability ratings. Please note, I receive no compensation from Morningstar or anyone else covered in these podcasts.

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

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1. Great ESG Stocks for Your Portfolio

I’ll begin with Steve Booyens's article titled 7 ESG Stocks to Add to Your Portfolio that appeared on investorplace.com. I’ll mention each company followed by some of his remarks on that company. Incidentally, he says “For this article, I used MSCI’s (NYSE: MSCI) ESG ratings. MSCI is one of two leading ESG data providers alongside Sustainalytics.” So,

"1) Procter & Gamble (NYSE: PG)

Long-standing brand strength has assisted Procter & Gamble in ascertaining a dividend payout for 64 consecutive years. MSCI cites factors such as product safety and carbon footprint as drivers behind the company’s strong ESG rating…

A forward dividend yield of 2.54% doesn’t only mean that income prospects are bright, but it also means that the company’s growth is intact.

2) Texas Instruments (NASDAQ: TXN)

Texas Instruments receives a near-perfect rating from MSCI. I like the stock as a semiconductor play due to the diversity in the company’s distribution lines. A growing electronics market and a rebound in the auto market should contribute immensely to its top line moving forward…

A dividend yield of 2.1% is seen as high relative to the sector. I used the P/E price multiple and expected EPS and calculated an intrinsic value of $226, worth an upside of roughly 19%. KeyBanc’s recent price target of $240 per share should breathe air into the argument.

3) C.H. Robinson Worldwide (NASDAQ: CHRW)

Corporate governance and behavior have caused an upgrade to a AA rating of late for this logistics and shipping company…

The company has experienced 26.25% in year-over-year revenue growth and 125% growth in normalized net income year over year…

Judging based on relative value, the stock’s very attractive… CH Robinson recently received a $117 price target from UBS, which could mean an upside of 26%.

4) Teladoc (NYSE: TDOC)

This healthcare tech stock has pulled back by over 20% over the past year after its merger with Livongo Health, followed by a class-action complaint against the latter. The stock leveled out in the last month with a 3% gain, and investors are optimistic, following the company’s reported 150% year over year in revenue growth last quarter…

With a price to book ratio of 1.54 versus its five-year average of 6.52, I certainly see relative value at play.

5) Nvidia (NASDAQ: NVDA)

Nvidia has been in a speculative space of late, but I believe that shouldn’t be the case. The company is gaining market share in an expanding industry. Furthermore, Nvidia is a cash-rich company, which is being used for growth acquisitions, dividends, and share buybacks…

Analysts from BMO Capital remain optimistic as they placed a $1,000 price target on the stock last week. I think the stock could reach the $1,190 handle by next year…

Corporate governance, behavior, and human capital development are the predominant factors contributing to the company’s AAA ESG rating.

6) Adobe (NASDAQ: ADBE)

Adobe has been a popular stock among analysts over the past year. The company’s ESG is driven by its data privacy policy, sound corporate governance, and favorable working conditions. Adobe has experienced solid growth through Adobe experience and its creative and document cloud products.

The stock has massively outperformed its sector median over the past three months…

I used the P/E multiple and multiplied it by the EPS to find a possible upside of 20%. If shares continue to be repurchased and diluted EPS continue to improve, investors could expect returns in excess of even that.

7) Microsoft (NASDAQ: MSFT)

Corporate governance and exploiting opportunities in cleantech have assisted Microsoft in achieving a favorable ESG rating. I wrote about Microsoft in a previous article…

Microsoft has experienced 15.34% growth in its year-over-year revenue growth in the trailing 12 months… In addition, Microsoft’s return on equity of 44.99% is more than six times the sector average.” End quotes.

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2. Great ESG Stocks for Your Portfolio

The next article relates to the potential for successful returns in the booming alternative energy and electric vehicle industry—though it appears miss-titled with the title Best Renewable Energy Stocks To Buy This Week? 4 To Watch. It’s by Josh Dylan which I saw on nasdaq.com. Here’s some of what Mr. Dylan has to say.

“The… federal focus on EV adoption would highlight companies such as Blink Charging (NASDAQ: BLNK) and Volta Charging (NYSE: SNPR)…

(He continues.) Here are four (companies) making headlines in the stock market now.

1) ChargePoint Holdings Inc. (NYSE: CHPT)

ChargePoint is an EV infrastructure company that is based in Campbell, California. The company operates one of the largest online networks of independently owned EV charging stations. It has a strong leadership position in North America and a growing presence in Europe. The company has an established, capital-light business model with growth that is proportional to a rapidly growing EV market. ChargePoint Holdings Inc. stock is up by over 170% in the last year…

2) Li Auto Inc. (NASDAQ: LI)

Li Auto is an electric vehicle manufacturer that is headquartered in Beijing. The company designs, develops, manufactures, and sells premium smart EVs. In essence, it is a pioneer to successfully commercialize extended-range electric vehicles in China… LI Stock is up by over 85% in the last year.

3) FuelCell Energy Inc. (NASDAQ: FCEL)

FuelCell Energy is a renewable energy company that focuses on fuel cell technology. It delivers efficient and clean solutions for the supply, recovery, and storage of energy. It also develops and maintains megawatt-scale fuel cell systems for utilities, industrial and large municipal power users. FuelCell Energy Inc. stock has seen impressive gains of over 150% in the past year…

4) Ford Inc. (NYSE: F)

Another upcoming name in the renewable space now would be Ford Inc. Sure, most would not immediately think of this legacy automobile industry giant when discussing renewable energy. However, like most of its peers, the company is pivoting hard towards the EV industry amidst global green initiatives… The company is currently planning to invest over $30 billion towards its EV divisions through 2025. Ideally, Ford hopes to electrify its entire portfolio by the end of the decade…

The company’s shares have skyrocketed by over 220% since its pandemic era low.” End quotes.

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3. Great ESG Stocks for Your Portfolio

Now here’s an article with an intriguing title: Is This The Hottest ESG Stock Of 2021? It’s by Nicholas Perry and on the oilprice.com site. Here are some quotes from the article.

“This company is Facedrive (TSXV: FD, OTC: FDVRF)… Facedrive calls itself a multi-faceted ‘people-and-planet first’ tech ecosystem offering socially responsible services to local communities with a strong commitment to doing business fairly, equitably, and sustainably…

Facedrive Foods helps connect people with their favorite restaurants and food stores in their area and provides them with great green deals… Facedrive Health strives to develop and offer innovative technological solutions to the most acute health challenges including its proprietary TraceSCAN wearable technology for contact tracing… Facedrive Marketplace… offers curated merchandise created from sustainably sourced materials…

We think the company’s recent growth strides… could put Facedrive in a position to be one of the most attractive tech stocks in all of North America for 2021…” End quotes.

Now, Mr. Perry also has the following Canadian stock suggestions… Quote.

“1) Shopify Inc (TSX: SH)

is playing a pivotal role in the e-commerce boom. Not only does it help anyone and everyone who wants to have a try at launching their own business, it gives them the tools and resources to do so… Shopify is pushing towards sustainability in a major way.

2) Polaris Infrastructure (TSX: PIF)

Is a Toronto-based renewable energy giant with a global footprint…

3) Telus Corporation (TSE: T)

Long-standing commitment to putting its customers first fuels every aspect of its business… In fact, Telus Health is one of the country’s biggest healthcare IT providers. And it’s done so with sustainability in focus… (Telus also has) four consecutive years on the Dow Jones Sustainability World Index.

4) Shaw Communications Inc (TSE: SJR.B)

… is one of Canada’s leading telecom infrastructure and cloud service providers… And that’s not necessarily a bad thing when you consider Shaw’s sustainability goals. In fact, it is one of the biggest customers of Bullfrog Power which sources its electricity from a blend of wind energy and hydropower…

5) Magna International (TSX: MG)

… is a great way to gain exposure to the wider alternative energy boom - and by extension ESG - market without betting big on one of the new hot automaker stocks tearing up Robinhood right now…” End quotes.

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Honorable Mentions. Even more great ESG stocks for your portfolio

1) Top Solar Energy Stocks To Watch Right Now? 3 For Your List by Brett David. Quote “Best Solar Energy Stocks To Watch Now Daqo New Energy Corporation (NYSE: DQ); Enphase Energy Inc. (NASDAQ: ENPH); and Canadian Solar Inc. (NASDAQ: CSIQ)” End quote. Of course, Daqo is highly controversial. There’s much written about it in the media.

2) These 3 Renewable Energy Stocks Are Too Cheap to Ignore by Travis Hoium who recommends First Solar (NASDAQ: FSLR), Howard Smith likes Proterra (NASDAQ: PTRA), and Daniel Foelber who picks Vestas Wind Systems (OTC: VWDRY).

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Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast: “Great ESG Stocks for Your Portfolio.“

To get all the links, stock symbols, or to read the transcript of this podcast -- and more -- go to investingforthesoul.com/podcasts and scroll down to this episode.

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Talk to you next on July 30. Bye for now.

© 2021 Ron Robins, Investing for the Soul.