ESG is here to stay. Every year the concept of sustainable finance in markets has continued to be an integral part of the process for most investors. ESG or Environmental, Social, and Governance investing is a growing theme that looks into how a company protects the environment in its operations through sweeping policies (i.e., reducing carbon emissions), manages and addresses its employees’ working environment and communities in which it operates, and how it deals with the company’s leadership and shareholder rights. This has led to the rise of clean energy stocks to buy.
The widespread adoption of the ESG framework has convinced many investors to look beyond a company’s financials. This increased awareness expanded the need for ESG assessment and growth into sectors that promote clean energy, renewable energy, and proper waste disposal. In addition, the movement has also prompted governments to create legislation that requires market professionals to ensure that their portfolio meets an appropriate ESG rating requirement. These measures further boost ESG stocks and related sectors, making them more attractive to investors.
Let’s look at some green stocks to buy right now.
Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) is a company that designs and manufactures home energy solutions that manage, store, and control energy using their platform. ENPH’s Enphase Energy System gives its customers advanced monitoring and remote maintenance capabilities while increasing solar generation and storage efficiency.
The solution also includes a cloud-based energy management platform for consumption monitoring and seamless management. Enphase is famous for its game-changing microinverter technology that transforms sunlight into a safe and scalable energy source, making it an ideal green energy stock worthy of consideration.
Enphase ended its second quarter this year with better-than-expected earnings by beating estimates by 22.11% at $1.16 EPS. Revenue has also grown by 34.12%, reaching $711.12 million. The company is well-positioned to serve the continuous growth of the rooftop solar market with its offering. With potential policy incentives for consumers to adopt sustainable technology, ENPH is poised to take advantage of these to drive further growth and make ENPH one of the best clean energy stocks to buy.
Rex American Resources Corporation (REX)
REX American Resources Corporation (NYSE:REX) is a holding company operating in the ethanol and by-products segment. REX’s operations are divided between four different subsidiaries: NuGen Energy, One Earth Energy, LLC (NuGen), LLC (One Earth), and Big River Resources, LLC (Big River). REX’s primary ethanol operations focus on corn, ethanol, natural gas, distillers grains, and non-food grade corn oil.
With interests in over six ethanol production facilities and 199 plants over 25 states, REX has U.S. production of around 17.9 billion gallons annually.
Rex expects to release its earnings and performance this August 29, 2023. Looking at its past performance, the company beat earnings expectations for the last four quarters. Its most recent earnings last April even beat estimates by 275%! Not only that, but Truist Securities also recommends REX as a “Strong Buy.” With growing earnings and an increased transition to sustainability, REX is one of the best options for any investor looking for exposure to renewable energy stocks.
Perma-Fix Environmental Services (PESI)
Perma-Fix Environmental Services (NASDAQ:PESI) is an environmental services and equipment company that operates in treatment and services segments focused on processing radiological, nuclear, and hazardous waste. These segments include processing and disposal services, equipment calibration and maintenance, site surveys, and radiological measurement. The company also researches problematic waste streams and identifies, develops, and implements custom waste processing techniques to treat these hazardous wastes. This makes it one of those clean energy stocks to buy.
PESI recently received a 5-year contract in a USACE Enviro-Fix joint venture valued at $40 million that helps with the company’s sustained profitability. The company also awaits numerous project awards to further support its growth, strong balance sheet, and liquidity. All this means PESI could be one of the best choices for anyone looking for exposure to green stocks.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
