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Envirotech Adoption Picks Up Pace: 5 Stock Choices

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Globally, there has been an urgent need to step up efforts toward conserving the environment. Countries are now deeply concerned over climate change and its gradual impact on daily lives. While government and companies have shown a sense of accountability in recent years, investors did their share by investing responsibly toward a sustainable future. However, to curb the impacts of human involvement that lead to carbon footprint and pollution, the application of environmental technology has become essential.

Creating a Positive Impact on the Environment

What do environmental technologies encompass? In simple terms, these make up a class of electronic devices that can promote sustainable management of resources. Environmental technologies, also known as envirotech, have several other aliases like green technology (greentech) or clean technology (cleantech). This class of electronic devices can either address purification and waste management, or sustainable energy or both.

In recent years, companies have been pushed to disclose their environmental impact, especially metrics like carbon footprint, energy consumption, water and waste management. Researchers and scientists can thus formulate the company’s role in the overuse of natural resources, global climate change, and deforestation, and suggest them to take steps on creating a positive impact on the environment. Companies dealing in envirotech provide specific technologies that are used only for solving environmental problems like carbon-scrubbing filters, waste reduction technologies, water purification systems and more.

For instance, envirotech companies dealing in carbon-based waste have found ways to convert turkey bowels to used tires into oil by adding sufficient heat and pressure, a process called thermo-depolymerization. Hence, this technology can make petroleum in the same way by speeding up the process that would take millions of years to achieve the same byproduct.

Some companies focus on using microbes and plants to clean up contamination. A process called phytoremediation is being used to clean up nitrates present in contaminated water with the help of microbes and arsenic from contaminated soil by plants.

In fact, rise in adoption of radio-frequency identification sensors is eliminating carbon emissions and increasing interest for the use of clean energy resources among individual and industries. And, favorable government policies to tackle climate change and pollution are boosting the space. Additionally, the use of Internet of Thing (IoT) has contributed to the reduction in pollution and emission, exploitation of the environment, while minimizing operational costs and power consumption.

5 Stocks Picks

Envirotech companies are gaining spotlight as more companies consider taking services to not only play their role in conserving nature but also please investors who are focused on environment and sustainability. Per an Allied Market Research report, the global green technology and sustainability market was valued at $8.79 billion in 2019 and is projected to see a CAGR of 24.3% to reach $48.36 billion by 2027. Hence, we have shortlisted five stocks that offer envirotech and are poised to return well on investment.

Heritage-Crystal Clean, Inc. (HCCI - Free Report) provides parts cleaning, hazardous and non-hazardous waste, and used oil collection services to customers in the industrial and vehicle maintenance sectors. The company's expected earnings growth rate for the current year is more than 100% compared with the Zacks Pollution Control industry’s projected earnings growth of 12.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 36.1% upward over the past 60 days.

Heritage-Crystal Clean sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fuel Tech, Inc. (FTEK - Free Report) provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions. The company's expected earnings growth rate for the current year is 47.1% compared with the Zacks Pollution Control industry’s projected earnings growth of 12.8%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 43.8% upward over the past 60 days. Fuel Tech holds a Zacks Rank #2 (Buy).

Sharps Compliance Corp. (SMED - Free Report) provides medical, pharmaceutical, and hazardous waste management services. This Zacks Rank #2 company's expected earnings growth rate for the current year is 47.1% compared with the Zacks Pollution Control industry’s projected earnings growth of more than 100%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 55.8% upward over the past 60 days.

Quest Resource Holding Corporation (QRHC - Free Report) provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables. The company's expected earnings growth rate for the current year is 100% compared with the Zacks Waste Removal Services industry’s projected earnings growth of 13.1%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised more than 100% upward over the past 60 days. Quest Resource holds a Zacks Rank #2.

Clean Harbors, Inc. (CLH - Free Report) provides environmental and industrial services, it collects, transports, treats, and disposes hazardous and non-hazardous waste. This Zacks Rank #2 company that belongs to the Zacks Waste Removal Services industry has a projected earnings growth rate of 9.1% in the current year. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 6.8% upward over the past 60 days.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

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