Happy Eco News Top 5 Eco-friendly Companies and Green Stocks To Buy in 2024
Reading Time: 4 minutesTop 5 Eco-friendly Companies and Green Stocks To Buy in 2024
Interests in environmentally focused stocks have faced headwinds over the last few years, mainly due to the high costs of renewable energy infrastructures and ongoing economic challenges. However, 2024 signals a strong resurgence in this sector.
The installation of global renewable power has been on the rise since 2023, followed by an increase in market capitalization to $7.2 trillion in Q1 of 2024. In addition, the stabilizing of the U.S. interest rate cycle is expected to further boost clean energy companies and related stocks. This article details the top five green stocks that can help you position for the incoming boom in green stocks.
Overview of Eco-Friendly (Green) Investments
Green investments aim to facilitate and support businesses that prioritize environmental safety. These enterprises work to reduce harmful pollutants in alternative production and utilize technologies, such as solar and wind power, that promote sustainability to minimize their ecological footprint. Unlike the older technologies that employ fossil fuels that produce harmful exhausts and waste products, these businesses are focused on safeguarding the health of the natural world for the future and promoting necessary regulations as the world adjusts to climate-friendly alternatives.
Investments in the sustainability sector have heightened lately, especially with the growing interest and appeal of the general public in climate reforms. In turn, many markets, like foreign exchange trading, are thriving. Like the green stocks sector, forex trading is also a highly sustainable financial market. Every transaction carried out by traders is processed digitally and could result in lower greenhouse emissions compared to other investment processes. The cryptocurrency market, for instance, has caused more environmental concerns, given crypto mining accounts for 0.9%-1.7% of the total electricity used in the US. If you’re looking to build a portfolio populated with sustainable-focused companies, the pioneering organizations listed below are paving the way to a brighter future.
Tesla (TSLA)
Tesla is popular for producing some of the most sustainable cars in the world. The production of these renowned electric vehicles (E.V.s) has earned the company its title as a leading eco-friendly company. These EVs are more sustainable than traditional internal combustion vehicles (ICEs). Tesla’s emissions per vehicle went down 29% between 2021 and 2022 and another 10% by 2023. Car development is known to be a resource-heavy and pollutant-high business, but the company is one of the few that have successfully found a way around this.
At its Shanghai Gigafactory, Tesla recycled 94% of its total waste in 2023. Overall, about 90% of the company’s waste was recycled in 2023. The company also handles the majority of its in-house processes, which has helped it monitor and adjust from time to time. NASDAQ charts show that TESLA stocks are up 20.55% in the past month, solidifying its promises of good profits for investors.
General Electric (G.E.)
The multinational conglomerate is second on our list, particularly since it has made a number of significant strides towards sustainability. Its investment in clean technologies like sustainable aviation, hydrogen power, and carbon capture have been some of these companies’ goals over the years. G.E. aerospace technologies, for instance, is focused on achieving a long-term goal of net-zero carbon emissions by 2050. General Electric also operates in industries like industrial power, renewable energy, and healthcare. The G.E. stocks are up over 10% in the last month and are one of August’s top performers.
NextEra Energy Inc. (NEE)
NextEra Energy, Inc. (NEE) is a large American energy company. Headquartered in Juno Beach, Florida, it is one of the largest electric utility holding companies in the U.S. and a leader in solar and wind electricity generation, which makes it one of the biggest green investments in 2024. In addition to wind and solar, NextEra is investing heavily in large-scale battery storage systems, which are crucial for stabilizing renewable energy supplies and ensuring consistent power availability. The company’s long-term goal is to be carbon emissions-free by no later than 2025.
First Solar Inc (FSLR)
First Solar is a renowned American manufacturer of solar panels. The company develops and provides utility-scale P.V. power plants, offering other services, including finance, construction, and maintenance of end-of-life panel recycling. First Solar’s resource-efficient manufacturing procedures have helped the company achieve a carbon footprint of about 2.5 times lower and a water footprint of about three times lower. According to the company’s recent financial reports, it recorded a revenue of €3.39 billion, which is significantly higher than the €3.00 billion acquired in 2023. It has recorded significant growth over the years, and the company’s stocks could be a solid buy to add to your portfolio.
American Water Works (AWK)
American Water Works Company, Inc. is the largest publicly traded water and wastewater utility company in the United States. It provides water and wastewater services to millions of people across the country through regulated operations in several states. The company emphasizes water conservation through programs encouraging customers to use water efficiently. This includes education initiatives and smart water technology solutions to reduce water waste. AWK’s revenue as of June 2024 was $1.15 billion, with a net profit margin of 24.11%.
Exploring Green Investment for Long-Term Profitability
Eco-friendly companies offer a compelling proposition: long-term viability and growth potential. This certainty is one of the sector’s many perks, which is why market investors will turn to them again in 2024. For those seeking enduring investment opportunities aligned with environmental sustainability goals, the stocks highlighted in this article present particularly attractive and profitable options.
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