Investing in a Greener Future: 3 Stocks for the Eco-Conscious Investor

  • Eco-friendly stocks are some of the most attractive investments.
  • Linde (LIN): Stable company with strong growth prospects.
  • Stellanis (STLA): Competitive EV segment backed by impressive financials.
  • First Solar (FSLA): Innovative company with a worldwide presence trading at a discount.
Eco-friendly stocks - Investing in a Greener Future: 3 Stocks for the Eco-Conscious Investor

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The future is green. The world is progressively becoming more eco-friendly through changes in habits, consumption and even energy sources. The green technology and sustainability market is rapidly growing, valued at $16.5 billion in 2023 and expected to grow to $61.92 billion by 2030, representing a CAGR of 20.8%.

With so much growth in store for investors, now is a great time to invest in eco-friendly stocks. At the same time, investing in eco-friendly stocks allows investors to support companies with a similar mission and values. Below are three of the best stocks for an eco-conscious investor. 

Linde (LIN)

Logo of Linde AG (LIN) in Hanover, Germany - The Linde Group is a multinational chemical company
Source: nitpicker / Shutterstock.com

Linde (NYSE:LIN) is a German company that is a leader in hydrogen energy, a sustainable form of energy with immense potential for efficiency. The company is among the largest in the energy sector, allowing it to make impressive progress toward developing new hydrogen energy technology. Even in its earlier stages, their hydrogen energy progress has multiple uses, whether reducing carbon emissions from aviation, enabling renewables through storage or creating worldwide hydrogen fueling systems

Linde also has attractive financials, which provide more reason to buy the stock. Most recently, they had a profit margin of 18.59%, a 10% increase year over year, and a strong figure, which means that the company can generate massive profits even after spending billions on research and development. This gives Linde flexibility and stability. The company is also valued at over $220 billion. Its sheer size and large margins enable it to comfortably work on new sustainable technology without risking the company’s financial safety. 

Stellanis (STLA)

Stellantis (STLA) logo at the transmission factory. The Stellantis subsidiaries of FCA are Chrysler, Dodge, Jeep, and Ram.
Source: Jonathan Weiss / Shutterstock.com

Stellanis (NYSE:STLA) is a car company that manufactures Jeep, Ram, Chrysler and Dodge, though it also produces electric vehicles (EVs). It only sells EVs in Europe, though it will expand to the U.S. this year. Stellanis is one of the biggest car companies that manufacture EVs, and their models have many competitive advantages, such as long-range, luxurious design and affordable prices. 

Looking at Stellanis’ financials, the stock continues to be a buy. Even though the industry profit margins tend to be slim, Stellanis boasts an impressive profit margin of 8.42%, allowing room for investing in the company and stability from economic downturns. The company also has a P/E ratio of only 4.3, much lower than its industry average of around 9. This further indicates that Stellanis trades at a discount, signaling a good time to buy. 

First Solar (FSLR)

Person holding smartphone with logo of US renewable energy company First Solar Inc. (FSLR) on screen in front of website. Focus on phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

First Solar (NASDAQ:FSLR) is an industry leader in the solar energy space and an attractive investment for eco-friendly investors. The company has an international presence, having created and managed some of the world’s most technologically advanced solar power plants, with a presence in North America, South America, Europe, Africa and Australia. The company is innovative, as it has constantly been cutting costs and increasing efficiency.

First Solar’s most recent financial statement also points to a buy. The company has consistently been profitable in the past year, a difficult benchmark for solar energy companies to hit. In addition, it has been reporting massive profits. First Solar had a 30.14% profit margin in the most recent quarter, which translates to over $349 million in profit and allowed the company to be even more competitive with its massive amount of cash. The company has doubled its revenue from the first quarter of 2023 and has profited eight times more. The company is growing fast, with no signals to stop. At the same time, it has a P/E ratio of just 11.69, suggesting that the stock is currently undervalued. 

On the date of publication, Tomas Levani 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.

Tomas is a self-taught investor with a passion for ESG investing. He has managed the portfolio of a small investment fund, interned at a Fortune 500 investment company, and started his own research firm. Through his freelance writing, he now aims to find favorable investments in companies with a mission of bettering the world.


Article printed from InvestorPlace Media, https://investorplace.com/2024/03/investing-in-a-greener-future-3-stocks-for-the-eco-conscious-investor/.

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