Constellation Energy (CEG)
If we want to talk about green stocks, without a doubt we have to mention Constellation Energy (NASDAQ:CEG), one of the pioneers when it comes to working for a cleaner planet. It is no less than the largest producer of carbon-free energy in the United States.
Not only is it one of the pioneers in green energy, but its finances are also impressive. Its latest financial success brings with it a reported GAAP Net Income of $731 million and Adjusted EBITDA of nearly $1.2 billion for the third quarter.
Notably, this company raised its full-year 2023 Adjusted EBITDA guidance to a range of $3.8 billion to $4 billion.
This company has a completely unwavering and tireless commitment to clean energy solutions. Their commitment is so great that they are actively expanding the nation’s largest carbon-free nuclear fleet, and not only that, but they have also acquired a significant stake in the South Texas Power Plant Project.
One of their main goals is to achieve 100% clean energy by 2040, tell me if this isn’t committed to their goals. This goal is backed by investments in nuclear, solar, wind, and hydroelectric generation.
Constellation Energy has a major role to play at the COP28 climate summit, which further underscores their global commitment to fighting climate change, as they have joined a major pledge with 120 industry partners to triple global nuclear power to zero emissions by 2050.
Not only is this company a cornerstone of a cleaner planet, and not only are its incredible financials not enough, but it is also recognized as a Great Place to Work, emphasizing its dedication to employee satisfaction. It has made collaborative efforts with Microsoft (NASDAQ:MSFT) along with strategic investments in wind energy, clean hydrogen production, and facility life extension, which shows its comprehensive approach to sustainable practices.
Watts Water (WTS)
There is a company that is doing an incredible job and is excelling in the plumbing, heating, and water quality sector, which makes it a great green investment option, and that is Watts Watter Technologies (NYSE:WTS).
Let’s start by talking about their financials, where they recently reported incredible financial results. They had a 3% increase in sales, totaling approximately $504 million, and in addition, their operating margin grew to 17.3%, an increase of 80 basis points, which is, without a doubt, wonderful. But also the adjusted operating margin reached 18.0%, a magnificent increase of 120 basis points.
Without a doubt, for this quarter, not only did they do their job more than well, but financially, their strategies paid off, and the company demonstrated solid operating and free cash flow of no less than $201 million and $182 million, respectively, for the year.
This company not only excels in financials, but is also strategically expanding its presence, recently making the acquisition of Josam Company, a major player in drainage and plumbing products, but they wanted to go further, they also completed the acquisition of Bradley Corporation. Without a doubt, this makes clear Watts Water’s great commitment and work with growth and ecology.
And as if that weren’t enough, Watts Water has secured its position as one of America’s Most Responsible Companies for the fifth consecutive year according to Newsweek magazine, based on indicators of corporate social responsibility and sustainability. This makes it one of those green stocks to consider.
Canadian Solar (CSIQ)
And to top off the great companies working for a cleaner world and to see you, let’s talk briefly about Canadian Solar (NASDAQ:CSIQ), which focuses on solar energy solutions, earning its place as an important green stock that you should definitely consider adding to your investment portfolio.
They had excellent numbers on their financials, with a 39% increase in solar module shipments, reaching an impressive 8.3 GW in the third quarter, which can be translated into a net income of $1.85 billion. As if all this were not enough for them, their e-STORAGE arm was not far behind, earning $2.6 billion.
To continue talking about finances, Canadian Solar’s subsidiary, Recurrent Energy, received an important injection of money from none other than BlackRock, who contributed $500 million dollars, obtaining a 20% stake in Recurrent Energy, which will allow it to expand in the United States and Europe.
But Canadian Solar is not standing idly by, it is also expanding its moves into South Australia, specifically Mannum, by entering into a partnership with Epic Energy. They are adding a robust 220 MWh energy storage solution to Epic Energy’s portfolio.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.