7 Sustainable Stocks for Eco-Conscious Investors in 2024


  • Building a green portfolio? Consider the stocks below.
  • NextEra Energy (NEE): Is planning to increase its energy production considerably this year.
  • Tesla (TSLA): This company is launching its next-generation vehicle factory in Texas.
  • Enphase Energy (ENPH): Is expected to recover strongly this year.
  • Continue reading for more sustainable stock ideas!
Sustainable Stocks 2024 - 7 Sustainable Stocks for Eco-Conscious Investors in 2024

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These sustainable stocks for 2024 should be on your watchlist, not only for their potential to generate solid returns but also for their contribution to a more sustainable and environmentally friendly future.

What’s best is that these companies also trade at reasonable valuations, and I also believe that they have the potential to surge higher as the world is presently far behind its carbon-neutral goals.

So here are seven sustainable stocks for 2024 that investors should consider adding to their portfolios.

NextEra Energy (NEE)

Engineers in yellow jackets and hard hats looking at a laptop in a workshop

As the world’s largest producer of wind and solar energy, NextEra Energy (NYSE:NEE) is my go-to recommendation for people who are interested in buying a renewable energy stock.

This year could be a massive one for NEE stock. They aim to increase their wind and solar capacity by the end of 2024 significantly. The company is also focusing on battery storage technology to enhance grid reliability.

Last quarter, the company added more than 3.2 gigawatts (GW) of new renewable and storage projects to its backlog, marking a record quarter for the company. This is complemented by an expansive pipeline of approximately 250 GW of renewables and storage projects in various stages of development.

Wall Street rates NEE stock as a “Buy,” and there’s an upside of 20.33% for its stock price from its current levels.

Tesla (TSLA)

Tesla (TSLA) on stock market. Tesla financial success and profit.
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Tesla (NASDAQ:TSLA) is a marquee name in financial media, and I believe that its potential has not yet been fully priced in yet to its valuation.

Although the company’s vehicle volume growth rate in 2024 might be notably lower than the previous year as it pivots towards more opportunities, it’s also working hard to deliver a number of new initiatives for 2024.

A key part of these initiatives involves investing a huge amount ($10 billion) into capital expenditures to improve its range of electric vehicles and AI capabilities. Some of these initiatives include a next-generation low-cost vehicle platform expected to start production at Giga Texas and several other plants. It’s also focusing on developing its Supercharger network, which will involve additional expenditures.

Analysts expect that TSLA will experience a deterioration in its topline for FY2024 by 17.36%, but they also forecast a 17.38% for its EPS the same year, and that EPS increase could nearly double in FY2025.

Enphase Energy (ENPH)

mobile phone screen with Enphase Energy (ENPH) logo on it to represent renewable energy stocks
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Enphase Energy (NASDAQ:ENPH) creates some of the “picks and shovels” for the renewable energy sector. This includes energy management solutions, such as microinverters and EV charging stations.

Now might be a good time to invest in ENPH if one is bullish on the renewable energy sector performance this year. The reason is that the company expects 2024 to be a year of recovery for the residential solar sector. This projection comes amid ENPH stock’s value falling 53.69% over the past year, mostly due to headwinds in Europe affecting its deliveries.

Part of this recovery is anchored in moving the production base for its batteries to the U.S. This move could be beneficial for ENPH stock, as it is expected to enhance its Investment Tax Credit (ITC) benefits under the Inflation Reduction Act and ultimately improve its financial performance.

Due to ENPH’s planned initiatives and depressed stock price this year, analysts have given it a substantial projected upside of 60.67% to be reached within 12 months.

Brookfield Renewable Partners L.P. (BEP)

Brookfield Renewable logo on a phone screen. BEPC stock. BEP stock.
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Brookfield Renewable Partners L.P. (NYSE:BEP) operates one of the world’s largest renewable power platforms. Its portfolio stretches across wind, hydroelectric, solar, and more, and operates in most of the world’s major continents.

The company has 31,800 megawatts of installed capacity at its sites, and it’s looking to expand that capacity even further to help the world transition from thermal coal burning. Some additional avenues it will explore this year include hydrogen and carbon capture to further its industrial diversification.

Although BEP’s P/E ratio is currently negative, it is forecasted to reach breakeven profitability within the next twelve months. Today may then be a wise time to pick up shares, as in FY2025, analysts expect its EPS to surge 566.41% to 53 cents per share.

Beyond Meat (BYND)

Person holding mobile phone with logo of American meat substitute company Beyond Meat Inc. (BYND) on screen in front of web page. Focus on phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

Beyond Meat (NASDAQ:BYND) offers sustainable meat alternatives for people who are concerned with the ethical and or environmental impacts of animal farming.

BYND is a penny stock, and its valuation has cratered over the past five years, losing 89.98% of its value over this time. However, it’s exploring initiatives to turn the company around, and Wall Street expects that it will be cash flow positive within the next twelve months.

In order to get there, BYND is exploring a number of new initiatives, which include a more nuanced pricing strategy to support gross margin expansion. This is a requirement, as its gross margin is currently negative at 0.49% over the past 12 months, which indicates that it must get its costs under control.

In light of these efforts, BYND stock has a 19.58% upside for its stock price.

Ball Corporation (BLL)

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Ball Corporation (VIE:BLL) is a leading supplier of sustainable aluminum packaging for a range of sectors and industries. Its goal is to reduce the carbon footprint of its aluminum.

BLL would be a great candidate for an ESG stock, as it has many avenues on its plate for 2024 to help the environment. One of these initiatives includes transitioning to a circular and decarbonized business model. 

Part of its decarbonization efforts sees BLL stock purchasing 151 megawatts of new wind energy, expected to produce 600,000-megawatt hours of clean energy annually. It is expected that this clean energy arrangement will power half of its manufacturing facilities in the U.S.

In terms of its financials last quarter and its outlook for the future, things look solid for BLL stock. The company highlighted double-digit growth in comparable operating earnings and significant free cash flow generation. 

Also, the anticipated sale of its aerospace division is expected to strengthen Ball’s financial position, which could open up the door to share buybacks and stronger dividends.

Vestas Wind Systems A/S (VWDRY)

A wind turbine appears in silhouette against a bright orange and blue sky.
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Vestas Wind Systems A/S (OTCMKTS:VWDRY) is a global leader in installing wind turbines and is also the go-to company for servicing these structures as well.

Due to the urgency of resolving the climate crisis and Europe’s open-handed approach the renewables, VWDRY had an outstanding year. In 2023, a record 4.2 GW of new offshore wind farms came online, with €30bn of new investments confirmed for future projects.

The company is also expanding its production capacity as well, with a new base of operations being established in Poland. This new factory is planned to produce blades for Vestas’ flagship V236-15.0 MW offshore wind turbine and is expected to start operations in 2026.

Therefore, the company’s outlook is bullish for the future, and it’s one of those sustainable stocks for 2024 that investors should consider.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/7-sustainable-stocks-for-eco-conscious-investors-in-2024/.

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