Best Vegan and Climate Tech Stocks

Ethical & Sustainable Investing News to Profit By!

Stocks covered include those related to renewable energy, vegan foods, climate tech, and more.

By Ron Robins, MBA

Transcript & Links, Episode 133, June 28, 2024

Hello, Ron Robins here. So, welcome to this podcast episode 133 titled “Best Vegan and Climate Tech 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 from the UK.

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The 3 Best Vegan Stocks to Buy in June 2024

Many ethical investors are vegan or vegetarian. And their ranks are growing. So, this first article will interest them – but also numerous other investors. It’s titled The 3 Best Vegan Stocks to Buy in June 2024. It’s by Muslim Farooque and seen on investorplace.com. Here are some quotes from the article.

“Their market leadership and recent fundamental achievements highlight their potential for long-term growth and rewarding shareholder returns.

1. Laird Superfood (NYSEAMERICAN:LSF)

has effectively carved a niche in the burgeoning plant-based food industry, serving a variety of natural and functional products from coffee creamers to beverage-enhancing supplements. Its diverse product lineup appeals to a range of customers, from turmeric coffee creamers to performance-enhancing mushrooms.

2. Vita Coco (NASDAQ:COCO)

is another top vegan play, and it’s easily the best pick from the list… it dominates the coconut water market with a 50% market share, offering a unique proposition from mainstream competitive sports and energy drinks. Also, it’s a hit with health-conscious consumers and athletes providing a laundry list of post-exercise recovery benefits.

3. Calavo Growers (NASDAQ:CVGW)

distributes avocados and other perishable plant-based foods. Focusing on global retail grocery and food service customers, the company efficiently capitalizes on the increasing shift toward vegan-friendly food options.

To be fair, it hasn’t been the most rewarding of vegan stocks, but recent results suggest it’s turning a corner.”

End quotes.

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5 Renewable Energy Stocks With a High Yield

This next article is back to investors’ favorite sector. It’s titled 5 Renewable Energy Stocks With a High Yield. It’s by Liz Angeles and found on Morningstar.com. Now some quotes from Ms. Angeles.

“We located five stocks included in the Morningstar North America Renewable Energy Index that provide attractive dividend yields and range from fairly valued to significantly undervalued.

A ratio above 1.00 is considered overvalued, and a ratio below 1.00 is undervalued.

Dividend Yields and Valuation Ratios for 5 US Renewable Energy Stocks

Source: Morningstar Direct. As of May 30, 2024.

1. Avangrid Inc

Fair Value Estimate: $35.75

Morningstar Rating: 3 stars

Morningstar Uncertainty Rating: Medium

Morningstar Capital Allocation Rating: Standard

Industry: Utilities—Regulated Electric

Avangrid’s renewable energy development subsidiary is one of the largest developers of renewable energy projects in the United States. It owns over 8.6 gigawatts of wind and solar energy capacity across the US.

2. Eversource Energy 

Fair Value Estimate: $73

Morningstar Rating: 4 stars

Morningstar Uncertainty Rating: Low

Morningstar Capital Allocation Rating: Standard

Industry: Utilities—Regulated Electric

Eversource Energy is one of the largest utilities in the US Northeast after its 2012 merger with NStar, 2017 acquisition of Aquarion, and 2020 acquisition of Columbia Gas.

3. Evergy

Fair Value Estimate: $65

Morningstar Rating: 4 stars

Morningstar Uncertainty Rating: Low

Capital Allocation Rating: Standard

Industry: Utilities—Regulated Electric

Evergy formed in June 2018 when Great Plains Energy of Kansas City, Missouri, and Westar Energy of Topeka, Kansas, merged. ‘With the integration complete and a new management team in place, Evergy is working to improve historically challenging regulation and invest in clean energy,’ writes Morningstar’s Miller.

4. OGE Energy

Fair Value Estimate: $38

Morningstar Rating: 3 stars

Morningstar Uncertainty Rating: Low

Morningstar Capital Allocation Rating: Standard

Industry: Utilities—Regulated Electric

OGE operates Oklahoma Gas & Electric and serves customers in Oklahoma and Arkansas.

5. Gilead Sciences 

Fair Value Estimate: $97

Morningstar Rating: 5 stars

Morningstar Uncertainty Rating: Medium

Capital Allocation Rating: Standard

Industry: Drug Manufacturers—General

Gilead has committed to obtaining all the electricity used in its operations from renewable sources by 2025. As of 2022, 62% of its global electricity needs were met by renewable sources, including on-site generation from solar arrays.”

End quotes

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5 stocks with high sustainability ratings that are also market darlings

Continuing with the renewable energy theme is this article titled 5 stocks with high sustainability ratings that are also market darlings. It’s by Faizan Farooque and seen on equities.com. Now some quotes from Mr. Farooque.

“1. NextEra Energy NEE

generates the most North American wind and solar energy. The corporation has invested considerably in renewable energy and intends to cut carbon emissions in 10 years and eliminate all Scope 1 and Scope 2 carbon emissions…

Future prospects are good for NextEra Energy, as earnings are expected to rise 8.24% to $3.68 per share next year. The company will benefit from the transition to sustainable practices and renewable energy sources, boosting its ESG credentials and long-term profitability.

2. Tesla TSLA

Tesla’s main goal is to make greener electric cars… For a circular economy, Tesla recycles batteries and vehicle parts… To minimize fossil fuel usage and promote sustainable energy, Tesla invests heavily in solar panels and battery storage. All plants at Gigafactory Berlin and others are now carbon neutral…

In the fourth quarter of last year, Tesla dominated the EV industry with 161,385 sales, up 23% from the year before. As an ESG investment, Tesla more than makes up for boardroom losses with strong potential having sold 51% of BEVs in Q4, up 1% from the third quarter.

3. Unilever UL

aims to achieve net-zero emissions by 2039… including a 100% reduction in all greenhouse gas emissions and a significant percentage reduction in Scope 3 emissions, which include emissions from land use, manufacturing and energy usage…

Unilever has initiated a $1.5 billion share buyback scheme, with an initial tranche of $850 million. This indicates that they wish to give the owners their money back and think the business is financially sound… Unilever distinguishes out from other firms in the consumer cyclical category with a 3.3% yield and a forward payout ratio of 57%, giving it enough opportunity to grow its dividend in the future.

4. Microsoft MSFT

is working to increase carbon-free electricity, reduce emissions and improve biodiversity, according to its 2024 Environmental Sustainability Report. Contracted renewable energy and carbon reduction projects exceed 19.8 gigawatts. Data center growth and materials have increased Scope 3 emissions.

There are numerous ESG features in Microsoft Cloud for Sustainability… They’re also improving emissions data management for all three scopes and providing tools for more accurate reporting and calculations.

5. Cisco Systems CSCO

ESG programs demonstrate their commitment to environmental and social responsibility… Several major rating agencies have granted Cisco strong ESG rankings. Cisco has a 12.4 Sustainalytics ESG risk score, indicating good performance. MSCI rates Cisco AA, indicating a market leader, while Refinitiv rates it 85, indicating greatness.

Cisco aims to be carbon-neutral by 2040.”

End quotes.

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5 Climate Tech Companies to Watch in 2024

Now something a little unusual with this article titled 5 Climate Tech Companies to Watch in 2024. It’s by Jake Smiths and found at msn.com. However, only 2 of the 5 companies are public, so they are the ones covered here.

“1. Dotz (ASX:DTZ)

a leading nanotechnology company traded on the Australian Stock Exchange (ASX), is at the forefront of innovation in carbon-based nanotechnologies. The company is dedicated to developing cutting-edge climate and industrial nano-technologies, with a primary focus on pioneering carbon dioxide (CO2) management solutions, guiding us towards a carbon-neutral future.

Central to Dotz's efforts is DOTZ EARTH, a revolutionary CO2 capture carbon-based sorbent technology specifically crafted for industrial decarbonization. DOTZ EARTH effectively addresses two pressing environmental challenges: industrial carbon emissions and plastic pollution. This groundbreaking technology ingeniously utilizes plastic waste as its primary raw material for creating a solid sorbent, facilitating CO2 capture and storage and marking a significant contribution to the global fight against climate change.

2. NuScale Power (NYSE:SMR)

has introduced a groundbreaking nuclear power plant that surpasses the large gigawatt nuclear facilities of the past in terms of intelligence, safety, cleanliness, and cost competitiveness. They specialize in developing and commercializing small modular reactors (SMRs).

At the core of the NuScale power plant is the NuScale Power Module™ (NPM), an SMR that consolidates traditional components—the reactor vessel, steam generator, pressurizer, and containment—into a single, simplified, and fully factory-fabricated unit. Each NPM has the capacity to generate 77 megawatts of electricity (MWe), and a NuScale plant can accommodate up to 12 NPMs, totaling 924 MWe (gross). This scalability, a distinctive feature of NuScale, enables the customization of facility output to align with demand and project economics.”

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5 Undervalued Stocks From Morningstar’s New LGBTQ+ Index

Pleasing ethical investors in the LGBTQ+ community will be this information in an article titled 5 Undervalued Stocks From Morningstar’s New LGBTQ+ Index. Its author is Quinn Rennell and is seen on morningstar.com. Here is some of what he has to say.

“The Index's 5 Cheapest Constituents Based on Price/Fair Value. Source: Morningstar. Data as of June 7, 2024

1. General Motors GM

• Fair Value Estimate: $84

The Detroit-based auto giant scores a perfect 7 on ExecuPride’s assessment for its LGBTQ+ inclusivity… GM’s stock was up 27.99% for the year to date as of June 7, 2024, and it is currently trading around $45 with a Morningstar Uncertainty Rating of High. This gives the stock a 5-star Morningstar Rating and the best value within the Morningstar Developed Markets LGBTQ+ Leaders Index.

2. Mercedes-Benz Group MBG

• Fair Value Estimate: EUR 117

The Stuttgart-based auto giant also scores a perfect 7 on ExecuPride’s assessment for its LGBTQ+ inclusivity. Like GM, it also trades at a steep discount, with a 0.56 price/fair value ratio as of June 7… Mercedes-Benz’s stock is up 12.16% on the year so far. Mercedes-Benz has a 5-star rating with a narrow Morningstar Economic Moat Rating.

Morningstar analyst Krzysztof Smalec writes that Mercedes-Benz ‘reported disappointing first-quarter earnings.’

3. Woodside Energy WDS

• Fair Value Estimate: (Australian dollars) AUD 45
• Industry: Oil and Gas Exploration and Production

Woodside scores a 4 out of 7 on ExecuPride’s LGBTQ+ assessment, one of the highest in the energy sector. Woodside’s stock is down 9.69% year to date. This stock receives a 5-star rating.

4. Roche ROG

• Fair Value Estimate: CHF 379
• Industry: Drug Manufacturers—General

The Swiss biopharmaceutical and diagnostic giant scores 4 out of 7 on ExecuPride’s assessment for its LGBTQ+ inclusivity. Roche’s stock was up 3.32% for the year as of June 7. Roche has a wide economic moat, a price/fair value ratio of 0.64, and a 5-star rating.

5. Bristol-Myers Squibb BMY

• Fair Value Estimate: $63
• Industry: Drug Manufacturers—General

Bristol-Myers Squibb discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, cancer, and immune disorders. Bristol-Myers Squibb scores a 7 on ExecuPride’s assessment for its LGBTQ+ inclusivity. Its stock is down 17.27% for the year so far.”

End quotes.

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Honorable Mentions From the UK

1. Title: Best Performing Sustainable Funds in 2024 on morningstar.co.uk. By Sunniva Kolostyak.

2. Title: The ESG funds making a comeback – on investorschronicle.co.uk. By Dan Jones.

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Ending Comment

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

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I’ll talk to you next on July 12th.

Bye for now.

© 2024 Ron Robins, Investing for the Soul