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In this article, we take a look at 10 cheap ESG stocks to buy right now. If you want to see more discounted ESG stocks, go directly. 5 cheap ESG stocks to buy now.
ESG investment is investment that considers environmental, social and governance issues. The term is often used interchangeably with ‘sustainable investing’ or ‘socially responsible investing’.
With respect to environmental issues, investors consider whether a company contributes to the conservation and protection of the natural environment. With respect to social issues, investors consider whether companies have good relationships with their employees, customers and communities. Finally, with respect to governance aspects, investors consider whether companies have standards of leadership and provide risk management.
ESG investing is a big trend on Wall Street.
According to PwC, “asset managers around the world are expected to increase their ESG-related assets under management (AuM) from US$18.4 trillion in 2021 to US$33.9 trillion by 2026. The compound annual growth rate ( CAGR) is projected to be 12.9%, and ESG assets are on pace to account for 21.5% of global AuM within five years.”
2022
Given that investors are looking at areas that do not always produce the best returns, ESG investing may not align with returns in the broader market, especially if fees are higher than average.
Nonetheless, there are some ESG stocks that trade at attractive valuations given the market pullback in 2022.
High inflation has led the Federal Reserve to raise interest rates six times this year alone, and many analysts believe the US central bank will raise interest rates further.
Broader market indices have fallen sharply in 2022 as a result of significant interest rate hikes, with some stocks trading at relatively low valuations and undervalued.
If economic data do not meet expectations, there could be further downside in the short to medium term. Given the uncertainty, it may be a good idea for long-term investors to own well-diversified stock portfolios across many different sectors.
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methodology
In our list of 10 cheap ESG stocks to buy now, we’ve highlighted 10 of the top 33 Vanguard ESG US Stock ETF (ESGV) stocks with futures PERs below 15 as of November 8, 2022. % of the fund.
Using the collective wisdom of hedge funds, we ranked the 10 based on how many hedge funds in our database owned shares of the same stock at the end of Q2 2022.
10 cheap ESG stocks to buy now
10. Verizon Communications (NYSE:VZ)
Projected P/E as of 11/8: 7.45
Hedge fund holders: 58
Verizon Communications Inc. (NYSE:VZ) is a company dedicated to ESG initiatives. In its ESG 2021 report, Verizon Communications Inc. (NYSE:VZ) stated that by 2035, its operations will have a net It said it is working to achieve zero emissions. , Verizon Communications Inc. (NYSE: VZ) announced his multi-year $3 billion pledge to strengthen vulnerable communities, help bridge the digital divide, and contribute to the achievement of the UN’s SDGs. I also did By 2030, support 1 million small businesses with technical resources and tools and upskill 500,000 individuals with technical training. ”
In terms of stocks, Verizon Communications Inc. (NYSE:VZ) is down 28% year-to-date as of Nov. 9 given overall market weakness and inflation.
Diamond Hill Capital Management commented on Verizon Communications Inc. (NYSE:VZ) in its Q2 2022 Investor Letter:
“Verizon Communications (NYSE:VZ), like other wireless providers, is raising the prices of its plans to offset the impact of inflation. It also said the wireless industry has experienced an aggressive promotional environment over the past 18 months. There are also signs that the industry’s low intensity of promotions will benefit Verizon in its quarterly share of net additions, while pushing customers to shift to higher-priced unlimited plans. It will allow us to continue to focus.”
Along with Bank of America Corporation (NYSE:BAC), JP Morgan Chase & Co. (NYSE:JPM) and Meta Platforms (NASDAQ:META), Verizon Communications (NYSE:VZ) is cheap. ESG stocks. At the end of Q2 2022, a number of hedge funds have entered the database.
9. Cisco Systems (NASDAQ:CSCO)
Forward PER as of 11/8: 11.73
Hedge fund holders: 63
Cisco Systems, Inc. (NASDAQ:CSCO) has a goal of net-zero Scope 1, 2 and 3 emissions by 2040. The company achieves its goals by increasing the energy efficiency of its products and solutions, leveraging renewable energy and investing in innovative carbon removal solutions. Cisco Systems, Inc. (NASDAQ: CSCO) also made his $477 million cash and in-kind donation to community programs in FY21. Shares of Cisco Systems, Inc. (NASDAQ:CSCO) are down about 30.5% year-to-date given the market’s weakness as of Nov. 9.
8. Broadcom (NASDAQ:AVGO)
Forward PER as of 11/8: 11.9
Hedge fund holders: 66
Broadcom Inc.’s (NASDAQ:AVGO) ESG initiatives include more than $1.2 million in donations for COVID-19 relief in 2021 and the launch of the Diversity@Broadcom initiative to encourage a more diverse, equitable and inclusive community. Includes raising. The company is also looking to reduce data power consumption with new data center products. Data centers could account for 13% of global power consumption by 2030, up from about 1% today, according to Broadcom Inc. (NASDAQ:AVGO). As of November 9, shares of Broadcom Inc. (NASDAQ:AVGO) are down 29.2% year-to-date as NASDAQ is down 34.6% year-to-date.
7. Bristol-Myers Squibb (NYSE:BMY)
Forward PER as of 11/8: 10.06
Hedge fund holders: 69
Bristol-Myers Squibb Company (NYSE:BMY) is an ESG leader, pledging to reduce total energy use by 15% and reduce water use across its facilities. Bristol-Myers Squibb Company (NYSE:BMY) also wants to provide equal opportunities for its employees and is committed to upholding United Nations principles on human rights. Bristol-Myers Squibb Company (NYSE:BMY) is up almost 29% year-to-date as of Nov. 9.
In its third quarter 2022 investor letter, RGA Investment Advisors commented on Bristol-Myers Squibb Company (NYSE:BMY):
Bristol-Myers Squibb Company (NYSE:BMY), referenced above, boasts a double-digit free cash flow yield, perhaps the best acquisition environment in history, split almost evenly between buybacks, dividends and M&A. In 2019, BMY acquired Celgene, where he had one of the industry’s leading corporate development programs. We see this as a great exit for us as generalists who believe companies like BMY should truly thrive with the ability to acquire good assets and science at low valuations. I mentioned the Turning Point acquisition above, and expect the company to become more aggressive in the M&A world. Importantly, Celgene joined his BMY with his CAR-T platform which is phenomenal. CAR-T is a cell therapy that targets cancer by activating the body’s immune system. Along with M&A, this will be an important growth vector in overcoming the company’s patent cliff. ”
6. Pfizer (NYSE:PFE)
Expected P/E as of 11/8: 9.15
Hedge fund holders: 70
Pfizer Inc. (NYSE:PFE) is a leading ESG company because it prioritizes the health and well-being of society and the environment in which it operates. The company also focuses on mitigating the impacts of climate change and reducing the waste generated by its operations. As of 11/9, shares of Pfizer Inc. (NYSE:PFE) are down 17.5% year-to-date given the overall market weakness.
Bargain ESG with many hedge funds like Pfizer (NYSE:PFE), Bank of America Corporation (NYSE:BAC), JPMorgan Chase (NYSE:JPM) and Meta Platforms (NASDAQ:META) It is a brand name. On databases owned at the end of Q2 2022.
Click to read more to see 5 cheap ESG stocks to buy now.
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Disclosure: None. 10 cheap ESG stocks to buy now was first published on Insider Monkey.
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