PODCAST: Sustainable Stocks for Your Portfolio

Sustainable Stocks for Your Portfolio, this podcast, covers the following stocks. Brooks Automation, Cohu. Ultra Clean Holdings, Entegris, Brookfield Renewable Partners, Vestas Wind Systems A/S, First Solar Inc., Beyond Meat, Clean Harbors, Atlantica Sustainable Infrastructure, Brookfield Infrastructure, Crown Castle, Aemetis, Orbital Energy Group, and VivoPower International. Reviewers: Aniruddha Ganguly, Yelena Mandenberg, Matthew DiLallo, Jonathan Phillip

PODCAST: Sustainable Stocks for Your Portfolio

Transcript & Links, Episode 51, February 12, 2021

Hello, Ron Robins here. Welcome to podcast episode 51 published on February 12, titled “Sustainable 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.

And Google any terms that are unfamiliar to you.

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1. Sustainable Stocks for Your Portfolio

Though not described as ESG stocks, most ESG funds hold many electronics stocks. Here’s an article titled 4 Top Electronics Stocks to Buy From a Prospering Industry from Zacks. And it’s by Aniruddha Ganguly.

I’ll first mention the name of the recommended stock followed by some brief comments by Mr. Ganguly.

1) Brooks Automation (BRKS)

This Chelmsford, MA-based company is benefiting from robust growth in its life sciences business driven by COVID-19-led demand. Moreover, this global provider of semiconductor manufacturing automation solutions and life science sample-based services and solutions has significantly expanded its life science clientele. Markedly, China also offers significant growth opportunity for its life sciences segment. Moreover, solid demand for contamination control solutions remains a key catalyst…

The Zacks Consensus Estimate for its fiscal 2021 earnings has moved up 5.5% to $1.72 per share over the past 60 days. This Zacks Rank #1 (Strong Buy) company has gained 97.5% in the past year.  

2) Cohu (COHU)

This Zacks Rank #1 company is gaining from the rising demand for its semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors and thermal sub-systems in the wireless mobility market. Improving automotive and industrial, and rising demand for EVs bode well for the company. Moreover, shortage in auto chip supply is expected to increase capacity that bodes well for Cohu, which has a strong presence in the EV and ADAS market segment. Cohu has solid growth prospects in Test, Handler and Inspection markets in the long haul.

The Zacks Consensus Estimate for its 2021 earnings has risen 17.4% to $2.56 per share over the past 60 days. Cohu’s shares are up 89.9% in the past year.

3) Ultra Clean Holdings (UCTT)

This Hayward, CA-based company is benefiting from an expanding clientele. Robust demand for its part cleaning, surface encapsulation and high sensitivity micro contamination analysis solutions is a key catalyst. Moreover, recovery in wafer fab utilization bodes well for this Zacks Rank #2 (Buy) company.

Further, the company’s strong exposure to etch and deposition market as well as an expanding global footprint is a major positive.

The Zacks Consensus Estimate for its 2021 earnings has moved up 2.7% to $3.03 per share in the past 60 days. Ultra Clean’s shares are up 72.9% in the past year.

4) Entegris (ENTG)

This Billerica, MA-based company provides microcontamination control products, specialty chemicals and advanced materials handling solutions for manufacturing processes in the semiconductor and other high-technology industries. This Zacks Rank #2 stock is benefiting from solid demand for its leading-edge solutions in advanced technology nodes and increasing need for end-to-end contamination control solutions. Further, the acquisition of GMTI strengthens Entegris’ position as the premier supplier of yield enhancement solutions for the semiconductor market.

Markedly, the consensus mark for its current-year earnings has inched up 1.1% to $2.82 per share over the past 60 days. Entegris’ shares have gained 97.1% in the past year. ” End quotes.

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2. Sustainable Stocks for Your Portfolio

This second article is titled Sustainable Investing: Five Stocks To Check Out and is by Yelena Mandenberg. It was published on the gritdaily.com site. Though she covers some familiar ground to other posts in these podcasts, Ms. Mandenberg does have some new companies you can check out.

I’ll again mention the company she likes followed by a few of her remarks about that company.

“!) Brookfield Renewable Partners (BEP)

Focusing on renewable energy, Brookfield owns nearly 1000 power generating facilities worldwide, with their portfolio including hydroelectric dams, wind power, and solar power. They’re also well-known for a focus on community engagement, employee well-being, and social responsibility. Their stock is a slow-grower but overall profitable, with increases to come through the next few years as the company plans to continue to buy and create renewable energy facilities.

2) Vestas Wind Systems A/S (VWDRY)

This Denmark based company develops, manufactures, and installs wind turbine systems. They work with countries around the globe and are soaring in popularity.

3) First Solar Inc. (FSLR)

They design and manufacture photovoltaic solar power systems and solar modules around the world. As the popularity of solar energy increases, you can expect their stock to keep going up.

4) Beyond Meat (BYND)

Another industry that’s doing incredibly well is sustainable food. The company Beyond Meat is popular and profitable to invest in as many eateries and fast food companies are now relying on this product for their increasingly health-conscious or vegetarian customers. A study recently showed that this alternative ‘meat’ company generates less greenhouse gas emissions, uses less energy & resources, and less impact on water and land than traditional beef companies.

5) Clean Harbors (CLH)

As other companies struggle with spills, cleanups, and making changes to their own brands, they rely on companies that already know how to do that. Clean Harbors is particularly known for helping to clean up after the Deepwater Horizon explosion and the 2010 Gulf of Mexico Oil Spill. They continue to provide emergency spill response and hazardous waste management services.” End quotes.

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3. Sustainable Stocks for Your Portfolio

Now, one of our great analysts, Matthew DiLallo of The Motley Fool has written a piece titled 3 Top Infrastructure Stocks to Buy in February. Many ethical and sustainable investors have infrastructure stocks in their portfolios.

Here are his 3 recommendations followed by some brief remarks by him.

1) Atlantica Sustainable Infrastructure (NASDAQ: AY)

Overall, 69% of its income comes from renewable energy production, 15% from the transmission and transportation of electricity, 13% from natural gas-related infrastructure like power plants, and 3% from water desalination facilities…

Atlantica pays out most of its cash flow in dividends, offering a higher yield that's currently around 4.1%... Atlantica aims to invest $200 million to $300 million per year on new infrastructure additions, which should support steady dividend growth.  

2) Brookfield Infrastructure (NYSE:BIP) (NYSE:BIPC)

… is one of the biggest infrastructure operators in the world. It operates transportation, energy, and data infrastructure as well as utilities. Long-term contracts or government-regulated rates back 95% of its revenue, providing it with highly visible cash flows. Brookfield pays out the bulk of that money via a dividend that currently yields 3.7%. 

The infrastructure giant uses the cash it retains to help fund acquisitions. It has invested about $1 billion on new additions in recent months, highlighted by a telecom tower portfolio in India and a stake in a large-scale U.S. LNG producer.

3) Crown Castle (NYSE: CCI)

… is a real estate investment trust (REIT) focused on operating communications infrastructure. The company owns a leading telecom tower portfolio in the U.S. and a rapidly expanding network of small cells and fiber optic cable to support the country's 5G rollout. The company leases space on this infrastructure to mobile carriers under long-term contracts that provide it with stable cash flow.

Crown Castle also pays out most of those funds to investors via dividends, with its payout currently yielding 3.4%. The company expects to be able to grow its cash flow at a 7% to 8% annual rate for at least the next decade.” End quotes.

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4. Sustainable Stocks for Your Portfolio

So, to our final post. It’s titled Making A List Of The Best Stocks To Buy Now? 3 Renewable Energy Stocks To Watch by Jonathan Phillip and was on Nasdaq.com. As usual, I’ll mention the company name followed by brief comments from the author.

“1) Aemetis (NASDAQ: AMTX)

Aemetis is a California-based advanced renewable fuels and biochemicals company. Its development pipeline is focused on the reduction of carbon intensity…

Aemetis seems to be firing on all cylinders for now. Could this mark the beginning of another great year for Aemetis stock?

2) Orbital Energy Group (NASDAQ: OEG)

The company is working towards creating a diversified energy services platform. Orbital’s group of businesses include its gas systems, power services, and solar services…

The company has also been doing well financially… This included year-over-year jumps of 124% in total revenue and 134% in cash on hand.

3) VivoPower International (NASDAQ: VVPR)

VivoPower is an international renewable energy tech company. It is involved in the fields of battery tech, electric vehicles (EVs), and even solar and critical power services…

VivoPower announced that it closed a $250 million agreement with Australia-based GB Auto Group. Through the agreement, GB will become the exclusive distributor of VivoPower’s Tembo Toyota EV conversion kits in Australia. According to the report, it is the biggest deal for EVs in the Australasian region to date…” End quotes.

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End Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast: “Sustainable 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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Thank you for listening.

Talk to you next on February 26. Bye for now.

© 2021 Ron Robins, Investing for the Soul.