The 3 Best Climate Change Stocks to Buy in June 2024


  • Investing in these three of the best climate change stocks could allow you to contribute to a sustainable future while potentially generating strong returns.
  • Cadence Design Systems (CDNS): The electronic design automation software company enables the development of energy-efficient technologies.
  • Johnson Controls (JCI): As a leader in smart and sustainable building technologies, the company capitalizes on the growing data center market.
  • Waste Management (WM): The largest waste management company in North America focuses on recycling and waste-to-energy solutions.
Best Climate Change Stocks - The 3 Best Climate Change Stocks to Buy in June 2024

Source: Shutterstock

Today, we introduce three of the best climate change stocks as the world transitions towards a more sustainable future. Governments, businesses, and individuals are implementing solutions to mitigate environmental damage. These steps range from developing clean energy technologies to sustainable infrastructure, and innovative solutions to reduce greenhouse gas emissions.

Meanwhile, the global push towards sustainability presents a compelling investment opportunity. Underscoring the profitability of sustainable investing is an exchange-traded fund (ETF) like the iShares MSCI ACWI Low Carbon Target ETF (NYSEARCA:CRBN). This ETF provides exposure to equities with a lower carbon exposure than that of the broader market. The CRBN fund has appreciated 11% year-to-date (YTD), mirroring the strong gains of the benchmark S&P 500 index.

Companies across various sectors are developing innovative solutions to mitigate climate change and transition towards a sustainable future. By investing in some of the best climate change stocks, you can contribute to a greener future while potentially generating strong returns for your portfolio.

Cadence Design Systems (CDNS)

A Cadence corporate office building has a sign with the company logo out front
Source: mrinalpal /

First up on our list of best climate change stocks is Cadence Design Systems (NASDAQ:CDNS). The company specializes in electronic design automation (EDA) software, a critical toolset for designing microchips. Their software suite empowers engineers to create complex integrated circuits more efficiently and effectively.  This technology plays a vital role in developing energy-efficient chips used in electric vehicles, renewable energy systems, and smart grids.

The EDA software company delivered mixed financial results for the first quarter of 2024. Total revenue declined 1.2% to $1.009 billion, yet still beat analyst estimates. Adjusted net income and adjusted diluted earnings per share (EPS)  both slumped 9.3% to $318 million and $1.17, respectively.

Meanwhile, Cadence Design Systems finalized its acquisition of BETA CAE Systems, which offers engineering simulation solutions. This strategic move strengthens Cadence’s Intelligent System Design strategy by adding complementary structural analysis capabilities to its multiphysics suite. As a result of the expanded portfolio, customers can enjoy increased solutions across automotive, aerospace, industrial, and healthcare sectors, among others.

So far in 2024, CDNS stock has appreciated close to 10%.  At present, the shares are richly valued at 49.75x forward earnings and 19.70x sales. Nonetheless, Wall Street has a 12-month price target of $322 for CDNS, signaling around a 10% upside.

Johnson Controls (JCI)

A sign for a Johnson Controls location showing the logo and address of the company.
Source: Jonathan Weiss /

A leader in smart and sustainable building technologies, Johnson Controls (NYSE:JCI) is the next company among today’s best climate change stocks. The company provides solutions for building automation, heating, ventilation, and air conditioning systems, and fire protection. JCI focuses on optimizing energy efficiency through its advanced building management systems and technologies. They also offer expertise in green building design and implementation, contributing to the reduction of a building’s environmental footprint.

Investors were pleased that Johnson Controls delivered strong financial results for the second quarter of 2024, as sales increased 1% YOY to $6.7 billion. The company reported a 12% rebound in orders, driven by continued strength in data centers. Adjusted net income grew 3% to $533 million, while adjusted EPS increased 4% to 78 cents.

Recently, Johnson Controls has strengthened its push into the high-growth data center market by forming a dedicated “Global Data Center Solutions” organization. This strategic move aims to combine energy-efficient, sustainable, and safe data center solutions with unmatched service to meet the increasing demand.

Since January, JCI stock has surged 22% YTD and is currently trading at an attractive 17.06 times forward earnings and 1.79 times sales. In addition, Johnson Controls shares offer a current dividend yield of 2.12%. Potential investors may regard a dip in JCI stock as an opportunity to invest for the long term.

Waste Management (WM)

person depositing a plastic water bottle in a yellow plastic recycling bin. The bin is in a line-up of several other blue and green bins.

The largest waste management company in North America, Waste Management (NYSE:WM) is another strong candidate for best climate change stocks. The company offers waste collection, recycling, and disposal services for residential, commercial, industrial, and municipal customers. Beyond traditional waste collection and disposal, WM actively invests in innovative solutions to minimize environmental impact. These efforts include diverting waste from landfills through recycling initiatives and implementing waste-to-energy conversion technologies to generate renewable power.

In late April, Waste Management reported robust financial results. Revenue increased 5.5% YOY to $5.16 billion. Adjusted net income surged 32% YOY to $706 million, while adjusted EPS jumped 34% to $1.75.

In company news, Waste Management’s management has recently announced the acquisition of Stericycle, an important company in medical waste services, for $7.2 billion. This strategic move expands WM’s environmental solutions portfolio into the high-growth healthcare market. In other words, Waste Management is en route to becoming a one-stop shop for customers seeking comprehensive environmental solutions.

So far in 2024, WM stock has gained almost 13% and come with a current dividend yield of 1.50%. Currently, the shares are trading at 28 times forward earnings and 3.93 times sales. Finally, analysts have a 12-month price target of over $224 for WM, signaling around 12% upside.

On the date of publication, Tezcan Gecgil 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 Publishing Guidelines.

Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the U.S. and U.K. and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to and the U.K. website of The Motley Fool.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC