Podcast: Great Green Energy Stock Picks

Ethical & Sustainable Investing News to Profit By!

Great Green Energy Stock Picks includes these articles: “How Green Energy Players Are Making Big Waves in the Stock Market,” by Christopher Liew; “2 Canadian ESG Stocks for Ethical Investors,” by Adam Othman; “Why This Under-the-Radar Renewable Energy Stock is a 'Strong Buy,’” by Benjamin Rains; “5 Top UK Sustainable Investment Trusts To Consider In H2 2023,” by Gaurav Sharma; and “20 Biggest Infrastructure Companies in the US,” by Ty Haqqi.

Transcript & Links, Episode 109, June 30, 2023

Hello, Ron Robins here. So, welcome to my podcast episode 109 titled “Great Green Energy Stock Picks.” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources. And look at my newly totally revised website at investingforthesoul.com!

So, remember that you can find a full transcript, and links to content – including stock symbols and bonus material – on this episode’s podcast page located at investingforthesoul.com/podcasts.

Now if any terms are unfamiliar to you, simply Google them.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, nor do I receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal to you any personal investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief so that I can get as many companies covered as possible in the time allowed. Please go to this podcast's webpage for links to the actual articles for more company and stock information. Links to an additional 3 articles are included below.

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1) Great Green Energy Stock Picks

Now the first two articles are from Canada, but they detail opportunities relevant to a global audience.

The first article is titled How Green Energy Players Are Making Big Waves in the Stock Market, by Christopher Liew, on fool.ca. Here’s some of what Mr. Liew has to say about his three picks.

“1. Ballard Power Systems (TSX:BLDP)

Market analysts recommend a hold rating. Their 12-month average price target is $22.91, or a 293% return potential. Ballard’s competitive advantages include experience in manufacturing fuel cell products (40 years), top-tier long-term customers, and strategic shareholders…

The latest product and potential growth driver is next-generation, thin, flexible graphite bipolar plates. Ballard plans to invest around $18 million in manufacturing the plates this year through 2025.

2. Nano One Materials Corp. (TSX:NANO)

Nano One outperforms the TSX (Toronto Stock Exchange) year to date (+18.85% versus +1.11%). Market analysts recommend a buy rating, with an average price target of $6.50 (+124%) in 12 months. This $302 million company’s contribution to the fight against climate change is the production of high-performance lithium-ion battery cathode materials.

According to management, the company’s technology applies to electric vehicles, energy storage, and consumer electronics. Besides reducing costs, the low-carbon intensity improves environmental impact. Nano One owns Canada’s only LFP (lithium ferrous phosphate) battery production facility.

3. Exro Technologies (OTC:EXRO.F)

Exro Technologies develops new-generation power electronics that expand the capabilities of electric motors and batteries…

The significant upside will come from continued focus on innovation in e-transition and energy storage market verticals. The addressable markets for its lead products, Coil Driver (motor controllers) and Cell Driver (energy storage), should reach US$133 billion and US$224 billion by 2030, respectively…

Market analysts recommend a strong buy rating, forecasting 55% price appreciation in one year.” End quotes.

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2) Great Green Energy Stock Picks

Now, the second article is titled 2 Canadian ESG Stocks for Ethical Investors, by Adam Othman on fool.ca. Among Mr. Othman’s comments on his two picks are these.

“1. Canadian National Railway (TSX:CNR)

might not seem like an ESG stock… However, this Canadian Dividend Aristocrat can be an excellent investment for this purpose. The $105.92 billion market capitalization company headquartered in Montreal is vital to the North American economy.

Boasting the only 18,600-mile railway network connecting three coasts in North America…

It generates solid financial results. In 2022, it increased its revenue by 18.2% and net income by 4.5%, increasing its free cash flow by 29.2% compared to the previous year…. Sustainalytics gives Canadian National Railway stock a low ESG risk rating due to its Climate Action Plan aligning with international ESG standards.

2. Innergex Renewable Energy (TSX:INE)

The $2.73 billion market capitalization company develops, owns, and operates run-of-river hydroelectric facilities. It also has a substantial number of wind and solar energy farms located in North and South America and France.

…Operating as an electricity utility company, it has a low-risk business model. 2022 saw Innergex reduce its net loss from $185.4 million in 2021 to $91.1 million. Its free cash flows rose by almost 60% year over year…

As of this writing, Innergex Renewable stock trades for $13.39 per share, down by 34.55% from its 52-week high. Currently, it pays its shareholders their payouts at a juicy 5.38% dividend yield.” End quotes.

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3) Great Green Energy Stock Picks

And now to a company that’s often overlooked according to this Zacks analyst. The article is titled Why This Under-the-Radar Renewable Energy Stock is a 'Strong Buy'. It’s by Benjamin Rains and found on zacks.com. Here’s some of what Mr. Rains says about Arcosa, Inc.

“Arcosa, Inc. (ACA - Free Report)

provides infrastructure-related products and solutions across construction, engineered structures, and transportation markets. Arcosa is benefitting from megatrends such as aging infrastructure, as well as the ‘continued shift to renewable power generation, and the expansion of new transmission, distribution, and telecommunications infrastructure…’

Arcosa crushed Zacks Q1 earnings estimate in late April and provided hugely upbeat guidance. Arcosa’s fiscal 2023 consensus estimate has surged by 44% since its report, with FY24’s figure 38% higher. Arcosa’s bottom-line positivity helps it grab a Zacks Rank #1 (Strong Buy)…

Arcosa’s engineered structures division includes utility structures, telecom structures, wind towers, and beyond. Arcosa’s wind tower business is booming… since the passage of the Inflation Reduction Act…

The gusts at Arcosa’s back include grid-hardening, electrification of vehicles, connecting renewable energy to the grid, the wireless 5G telecom buildout, and more…

Other Fundamentals

Zacks estimates call for Arcosa’s adjusted 2023 earnings to surge by 27% and then jump another 18% higher in 2024 to reach $3.26 per share… Overall, Arcosa appears to be a somewhat under-the-radar and strong way to gain exposure to multiple long-term trends in the U.S. and global economy. And its recent slip sets up a better entry point.” End quotes.

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4) Great Green Energy Stock Picks

Next is this article, also applicable to a global audience. It’s titled 5 Top UK Sustainable Investment Trusts To Consider In H2 2023. It’s by Gaurav Sharma and seen on forbes.com. Here are some quotes.

“Typically listed on UK and Japanese markets, investment trusts are public-listed pooled investment vehicles that generate income by investing in stocks of other companies, bonds (both corporate and government issued), real estate, infrastructure and privately held enterprises, etc.…

Based on current dividend yields*, NAV discounts** and exchange rates***, for me the following five UK-listed sustainable investment trusts stand out:

1. Triple Point Energy Transition Plc (LON: TENT)

Dividend Yield: 8.27%

Listed on the main market of the London Stock Exchange, Triple Point Energy Transition Plc invests in UK and European renewable energy projects touting its credentials as a stable dividend-paying trust that aims to enable a pan-European transition to a low carbon economy. Furthermore, its 7-8% average dividend yield not only ranks it among the highest in its category but also puts it on the list of the 20-highest dividend-yields among all UK-listed investment trusts.

2. NextEnergy Solar Fund (LON: NESF)

Dividend Yield: 7.52%

NextEnergy Solar Fund is listed on the London Stock Exchange's main market and is a constituent of the FTSE 250 index. As the name suggests, it invests in a diversified portfolio of solar energy and energy storage infrastructure assets. Most of its long-term cashflows are inflation-linked via UK government subsidies, and it offers an attractive dividend yield.

3. Renewables Infrastructure Group (LON: TRIG)

Dividend Yield: 5.97%

Renewables Infrastructure Group has been listed on the London Stock Exchange for over a decade and is also a constituent of the FTSE 250 index. The company focuses on onshore and offshore wind farms and solar parks in the UK and Europe.

4. Octopus Renewables Infrastructure Trust (LON: ORIT)

Dividend Yield: 5.52%

With its management trail leading to one of Europe's largest renewable energy investors – Octopus Energy – the Octopus Renewable Energy Infrastructure Trust aims to provide both capital appreciation as well as sustainable dividends by building and operating a diversified portfolio of renewable energy assets in Europe and Australia.

5. Greencoat UK Wind Plc (LON: UKW)

Dividend Yield: 5.51%

Greencoat UK Wind has the honor of being the first UK renewable infrastructure fund to list on the London Stock Exchange. It is also a constituent of the FTSE 250 index and is focused on UK wind power generation.” End quotes.

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20 Biggest Infrastructure Companies in the US

Now, the US economy is currently being lifted by two massive spending bills related to infrastructure. Many ethical and sustainable investors see infrastructure companies as having a place in their portfolios. So, this article might be of interest to many of you. It’s titled 20 Biggest Infrastructure Companies in the US. It’s by Ty Haqqi and is seen on finance.yahoo.com.

Only the public companies and non-fossil-fuel related are included here... and quotes about these companies are limited.

“14. Crown Castle Inc. (NYSE:CCI)

Total revenue (in billions): $58.1

Crown Castle provides shared communications infrastructure in the U.S. including small cells, cell towers and fiber, and counts itself among the largest U.S. infrastructure companies.

13. Fluor Corporation (NYSE:FLR)

Total revenue (in billions): $13.8

Fluor Corporation is one of the biggest engineering companies in Texas… The share price of Fluor Corporation has stayed the same over the last one year with its gains being wiped out over the last few months.

12. Norfolk Southern Corporation (NYSE:NSC)

Total revenue (in billions): $12.7

Norfolk Southern Corporation is one the biggest railroad companies in the U.S., not to mention among the largest infrastructure companies in the U.S. Norfolk Southern Corporation has been in the news the past few months for a massive derailment in East Palestine, Ohio, which resulted in the release of tons of toxic chemicals, and has recently been sued by the Department of Justice for the same.

11. American Tower Corporation (NYSE:AMT)

Total revenue (in billions): $10.7

American Tower Corporation owns and operates wireless and broadcast communications infrastructure not just in the U.S. but in several other countries as well.

6. CSX Corporation (NASDAQ:CSX)

Total revenue (in billions): $14.9

CSX Corporation is engaged in the business of real estate and rail transportation, and is headquartered in Florida. CSX Corporation's ROE has exceeded the industry average in the past though part of that is because of the company's high debt portfolio.

3. Union Pacific Corporation (NYSE:UNP)

Total revenue (in billions): $24.9

Union Pacific Corporation is the largest railroad company in the country, and one of the largest infrastructure companies in the U.S., and has provided a return of 61% to its investors in the last 5 years.

2. AT&T Inc. (NYSE:T)

Total revenue (in billions): $120.7

AT&T Inc. is one of the biggest telecom and mobile telephone services company not just in the U.S., but also the world. Recently, AT&T Inc. raised over $4.2 billion in an attempt to buy out wireless minorities.

1. Comcast Corporation (NASDAQ:CMCSA)

Total revenue (in billions): $121.4

Comcast Corporation is among the most valuable telecom companies in the world and its stock is favored by institutional owners who own around 85% of the company’s stock.”

End quotes.

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Two Other Honorable Mentions

1. Title: 5 Top Alternative Energy Companies on builtin.com. By Margo Steines.

2. Title: Why T. Rowe Price Group is a Top Socially Responsible Dividend Stock (TROW) on nasdaq.com. By BNK Invest.

One Article from Australia

Title: The Ethical Investor: El Niño is back! But there’s one ASX company that could benefit from a potential drought. By Eddy Sunarto on stockhead.com.au.

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Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast titled: “Great Green Energy Stock Picks.”

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© 2023 Ron Robins, Investing for the Soul