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A recent investor poll revealed fully 67% of investors feel they should put their money to work with "ethical" companies - but far fewer actually move on that sentiment.
One likely reason why is simple, and unsurprising: These folks may fear there's less profit potential in ethical companies, so they invest elsewhere.
But for people looking for value with values, there's great news. The economy and its main drivers are changing, and in boardrooms all over the world, executives have heard the louder and louder calls for companies to bring their operations in line with investors' values.
It makes good sense for companies' bottom lines, too: 60% of consumers opt for products and brands that are environmentally responsible and sustainable, and a whopping 80% of companies saw positive results from adopting good sustainability practices.
Essentially, this change means there are now dozens and dozens of opportunities for regular folks to build top-performing portfolios in line with environmental, social, and corporate governance (ESG) standards.
Here are some to get you started - build positions in these companies or add to your existing position and do well by doing good...
The Best ESG Stocks Right Now
So, to help you along, we've prepped a list of ethical stocks with "skyscraper" profit potential...
Microsoft Corp. (NASDAQ: MSFT) intends to generate all its electricity from renewable sources by 2030. That's a tall order, so Microsoft has partnered with Black-owned solar company Volt Energy to help reach this ambitious goal. Volt Energy develops, finances, and builds rooftop and "carport" solar installations. Volt will provide Microsoft with access to its expansive solar installation network, and the two companies will work together to optimize the use of the solar energy generated.
This partnership is part of an even bigger effort by Microsoft to reduce its carbon footprint. In 2018, the company announced that it would be using all recycled materials in its products and packaging by 2020. And in 2017, Microsoft became the first major technology company to commit to powering all of its operations with renewable energy. Mainstream analysts predict that Microsoft stock could rise 22.05% by 2025, but as we've seen over the past 13 years we've recommended it, actual profits could be much bigger, much faster.
First Solar Inc. (NASDAQ: FSLR) is a leading solar manufacturer with over 20 years of experience in the industry. Its solar products have many applications, including residential and commercial rooftops, big-box retail stores, manufacturing plants, and schools.
Its current opportunities include expanding into new markets such as China, which is currently the world's largest solar market. First Solar's projected cash flow for 2022 is $4.8 billion, and it has already allocated $1.5 billion for capital expenditures this year. Its long-term debt is currently only 8% of its market value, compared to 12% for its peers. According to the average First Solar stock price prediction, the stock could potentially go up by 40.77% before 2025.
COMPASS Pathways Plc. (NASDAQ: CMPS) is a "health-tech" standout, and leading provider of innovative pathology testing solutions and services, which healthcare professionals use to detect and diagnose medical conditions.
COMPASS Pathways has a market cap of $1.1 billion and is based in the United States. Large organizations such as Kaiser Permanente and Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) are scooping up the company's products. In addition to a strong balance sheet, this trend indicates that COMPASS Pathways Plc. is poised for long-term profitability.
COMPASS Pathways stock is expected to grow at an annual rate of 12.5% between now and 2022. The company's strong balance sheet and ongoing growth trend suggest a good investment.
Startups can be some of the strongest engines for doing good - America's entrepreneurs and their early investors have created hundreds of thousands of jobs along the way, and changed people's lives and our whole world for the better. Starbucks, for instance, employs around 300,000 people, and the company has an interest in the wellbeing of each one. And when I said "do well by doing good" I mean if you'd invested $10,000 in Starbucks at its IPO, you'd have around $4.5 million today. The trick is finding the right startup, with the right leadership, and the right business model. Fortunately, we've got some backup who could help do that...
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