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5 Sustainable Stocks to Snap Up Ahead of Earth Day

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Apr 22 is celebrated as Earth Day and billions across the globe engage in activities to draw people’s attention toward climate crisis and environmental degradation. Since its inception in 1970, Earth Day has witnessed major environmental events, for instance the signing of the Paris Agreement in 2016. According to the United Nations, the theme for this year is “Restore our Earth,” which will be the second Earth Day Live digital event.

Transition to Net-Zero Emissions

Over the past decade, consumers and businesses have worked hard to prioritize environmental protection over economic growth. In fact, concepts like environmental, social, and corporate governance (ESG) now play a crucial role in shaping investment decisions, especially when it comes to millennial investors. Robeco’s ‘2021 Global Climate Survey’ shows that almost 73% investors stated that climate change is already a significant factor in their investment policy. The increasing awareness among investors has created the need for decarbonization. This in turn is supporting the transition toward a low-carbon economy, away from fossil fuels.

The United States’ re-entry into the global climate???fight plays a significant role in this transition, after President Joe Biden re-signed the Paris Agreement. Biden has pledged to slash America’s greenhouse gas emissions at least to half by 2030. In his efforts to achieve a 100% clean energy economy and reach net-zero emissions no later than 2050, he has planned to host a virtual summit of 40 world leaders to discuss the climate crisis. The summit will be held on Apr 22 and 23 and Biden will seek new commitments from the world’s biggest carbon emitters by setting more realistic goals.

Earlier in March, Biden had announced his infrastructure initiative, in which he plans to deploy $2 trillion in infrastructure projects to curb the country’s greenhouse gas emissions. The fund will be used in clean-energy measures, including electric vehicles funding, research and development, addition of charging stations, and retrofitting buildings and residences.

5 Sustainable Stock Picks

A post-pandemic green recovery could now inspire companies to produce more sustainable low-carbon products and investors should also park their funds.And new environmental regulation and changing business landscape focusing more on ESG will impact sectors like manufacturing, utilities and more. Here are five Earth-friendly stocks that will continue to grow as companies race against the climate clock.

NVIDIA Corporation (NVDA - Free Report) operates as a visual computing company. The company plans to source 65% renewable energy globally by 2025 and its GPUs are 20 to 25 times more efficient than CPU servers for AI workloads, which help in reducing carbon footprint.

The company’s expected earnings growth rate for the current year is 35.5% compared with the Zacks Semiconductor - General industry’s projected earnings growth of 18.5%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 16.6% upward over the past 60 days. NVIDIA flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Microsoft Corporation (MSFT - Free Report) develops, licenses and supports software, services, devices and solutions. This tech giant has been carbon-neutral across the world since 2012 and commits to being carbon-negative by 2030. Microsoft is also investing $50 million in AI for Earth to accelerate innovation by enabling AI directly to address sustainability challenges.

The company’s expected earnings growth rate for the current year is nearly 28% compared with the Zacks Computer - Software industry’s projected earnings growth of 2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 0.4% upward over the past 60 days. Microsoft carries a Zacks Rank #2 (Buy).

Texas Instruments Incorporated (TXN - Free Report) designs, manufactures and sells semiconductors to electronics designers and manufacturers.  The company’s operations require the use of raw materials, chemicals, energy and water. It has voluntarily set reduction goals, which comprise investment in new abatement technologies and the reuse and recycling of water when feasible.

The company’s expected earnings growth rate for the current quarter is 25.8% against the Zacks Semiconductor - General industry’s projected earnings decline of 0.6%. The Zacks Consensus Estimate for the Zacks Rank #2 company’s current-year earnings has been revised 1.2% upward over the past 60 days.

Deckers Outdoor Corporation (DECK - Free Report) designs, markets, and distributes footwear, apparel and accessories for casual lifestyle use. The company has been a member of the world’s largest corporate sustainability initiative, the United Nations Global Compact (UNGC), since 2016. Its sustainable development goals include materials, waste, water, gender equality and quality education, chemistry, climate and clean energy and human rights.

The company’s expected earnings growth rate for the current year is 35% compared with the Zacks Shoes and Retail Apparel industry’s projected earnings growth of 17.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 0.2% upward over the past 60 days. Deckers Outdoor carries a Zacks Rank #2.

Adobe Inc. (ADBE - Free Report) operates as a diversified software company. The company offers Adobe Creative Cloud where designers are using 3D and AR design tools to create photorealistic content and design for circularity, reducing environmental impact — that means no more costly photoshoots, wasted materials, packaging, or emissions from shipping and travel.

The company’s expected earnings growth rate for the current year is 17.6% compared with the Zacks Computer - Software industry’s projected earnings growth of 2%. The Zacks Consensus Estimate for this Zacks Rank #2 company’s current-year earnings has been revised 5.5% upward over the past 60 days.

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