Rising political and social acceptance of environmentalism is bolstering companies that have already been immersed in the green economy and encouraging change in those that haven't. Weather events such as wildfires and floods have intensified. Nations are continuing to discuss climate policies this week at a United Nations summit in Scotland.
Some consumers are becoming more conscious and demanding more eco-friendly products. And
clean energy technology is getting cheaper. "Any serious professional investor should be making green and clean at least some part of their portfolio," says Andrew DeFrancesco, CEO of SOL Global Investments Corp. "I don't know a sector outside of crypto that has as much global opportunity and appeal, including cannabis." These are the best green stocks to add to your portfolio now:
1. UGE International Ltd. (ticker: UGEIF). Nicholas Boychuk, analyst with Cormark Securities, says the company's model of developing, building, owning and operating commercial and community solar projects will result in a strong and diversified recurring revenue base. He likes that the business model allows property owners to monetize unused space and consumers to get access to clean, local, renewable power at or below grid rates. A tail wind for the company is the goal of President Joe Biden's administration to power the equivalent of 5 million American homes with community solar systems. Boychuk says that would mark a 700% capacity increase. "Combined with low ongoing operating costs, UGE should generate consistently high
EBITDA margins and free cash flow," he says, referring to earnings before interest, taxes, depreciation and amortization. "We expect the company will thrive."
2. Beyond Meat Inc. (BYND). Beyond Meat's shares have been in a slump, recently trading below $100, when they were near $200 a little over a year prior. That's an opportunity to invest in a leader in a growing market, says Peter Krull, CEO with Earth Equity Advisors. "We like Beyond Meat," he says. "The importance of shifting to a plant-based diet is a vital climate-change solution." Still, Beyond Meat faces increasing competition for pieces of a relatively small pie. And some of that competition in the plant-based protein space is coming from much bigger companies such as Tyson Foods Inc. (
TSN), Kellogg Co. (
K) and Conagra Brands Inc. (
CAG). "However, we believe the quality of their product, in addition to their first-mover status, positions them quite well moving forward," Krull says.
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