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Invest in the Planet: 3 Sustainable Stocks for Earth Day 2024

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As Earth Day 2024 approaches, it’s the perfect time to reflect on how we can invest in the planet and our future. For those looking to make a positive impact with their investments, sustainable stocks offer a compelling opportunity.

These companies not only prioritize environmental conservation and sustainability but also deliver strong financial returns. This Earth Day 2024, consider investing in three sustainable stocks that are helping to build a greener future while potentially growing your wealth.

The history of Earth Day dates back to 1970. At the time, U.S. Senator Gaylord Nelson organized a national demonstration to raise awareness about environmental issues. Fast-forward to today and Earth Day has become a global event celebrated by more than 140 countries.

People are increasingly concerned about the environment and see value in companies that pursue sustainability. Investing in sustainable stocks this Earth Day 2024 allows you to support companies that are making a difference. Read on to discover how you can invest in the planet this Earth Day 2024. These three top sustainable stocks are market leaders in electric vehicles, renewable energy, and waste management.

Tesla (TSLA)

Tesla (TSLA) on phone screen stock image.

Source: sdx15 / Shutterstock.com

With Earth Day 2024 just around the corner, investors who want to adopt a more environmentally conscious stance can’t go wrong with Tesla (NASDAQ:TSLA), which has long proven itself to be one of the most sustainable stocks on the market. The electric vehicle pioneer continues to advance its impressive sustainability goals, driving meaningful innovation in clean energy.

In 2023, Tesla increased EV deliveries by an impressive 38% to over 1.81 million vehicles globally. It also expanded its industry-top charging infrastructure. Compared to gas-propelled cars, EVs help avoid over 55 tons of CO2 emissions over their lifespan. Additionally, Tesla’s solar and battery storage growth accelerated 90%.

The financials are just as inspirational. Tesla closed out 2023 with impressive revenues of $82.42 billion, including $25 billion in Q4 alone. Furthermore, a strong operating cash flow of $13.3 billion and a free cash flow of $4.4 billion confirm that Tesla is more than financially healthy and has more than sufficient capacity to keep funding clean energy innovations. As humanity focuses more and more on tackling climate change, sustainable stocks like Tesla that drive decarbonization through renewable energy and electric vehicles offer promising opportunities. With game-changing technology and strong financial performance, Tesla one of the sustainable stocks that provides an inspiring way to invest in the planet this Earth Day 2024.

Enphase Energy (ENPH)

mobile phone screen with Enphase Energy (ENPH) logo on it to represent renewable energy stocks

Source: IgorGolovniov / Shutterstock.com

Another of the attractive sustainable stocks to celebrate Earth Day 2024, Enphase Energy (NASDAQ:ENPH), distinguishes itself as the world’s top supplier of solar microinverters. This critical technology is what makes residential solar panels possible.

Thus, Enphase Energy is helping society transition to a cleaner form of energy since their technological innovations ensure homes can use renewable energy.

And the results are significant. For example, Enphase managed to get solar power into more than five million homes in 2023 alone. As a result, more than 45 million metric tons of carbon emissions did not pollute the atmosphere. Enphase also has its own very ambitious sustainability goals. The company intends for its operation to be fully powered by renewable energy by 2030.

What’s intriguing is how Enphase empowers smarter household energy use. Their integrated solar and storage solutions let homeowners manage power wisely and even go off-grid seamlessly during outages. The resilient microinverter systems even outperform in hurricanes and extreme weather.

The growth and financial metrics are compelling, too—43.1% three-year revenue growth rate and a 41 P/E ratio. With strong tailwinds for residential solar over the long term, Enphase presents an excellent sustainable investment choice for Earth Day 2024 and beyond. When it comes to driving environmental innovation, few companies walk the walk like Enphase. Its renewable energy impact and stewardship confirm ENPH as one of the standout sustainable stocks this year.

Waste Management (WM)

person depositing a plastic water bottle in a yellow plastic recycling bin. The bin is in a line-up of several other blue and green bins.

Source: shutterstock.com/PhotoByToR

Waste Management (NYSE:WM) is another in the stable of excellent sustainable stocks for investors to celebrate Earth Day 2024 with. The company makes incredibly valuable contributions supporting circularity and decarbonization goals while maintaining impressive financial growth.

For example, WM has increased the amount of landfill gas beneficially reused by over 20% since 2021 to 65%. At the same time, it expanded the amount of recyclables it manages from 15 million tons to 25 million tons. The company also owns the largest natural gas fleet, transitioning these heavy-duty vehicles away from diesel. Additionally, WM recently approved a $2.2 billion investment into renewable energy and recycling assets, including 20 new RNG facilities.

Financially, WM delivered over $5.8 billion in adjusted EBITDA in 2023. Furthermore, it achieved a significant expansion of 90 basis points to its operating EBITDA margin, which reached 28.9%. The company also reported a 4% increase in net cash from operating activities, which reached $4.72 billion, while free cash flow before investments went up by 5.1% to hit $2.67 billion.

What’s even more impressive is that the company expects to nearly double adjusted EBITDA to $8-8.5 billion by 2027 through these sustainability investments. Factor in a dividend hike for the 19th straight year to $2.60 annually, and these metrics show what an excellent investment Waste Management is.

For investors seeking sustainable stocks this Earth Day 2024, Waste Management offers an impactful environmental services option with robust financials and continued innovation. Its commitments supporting circularity and emissions reductions position WM favorably among socially conscious picks.

On the date of publication, Andrea van Schalkwyk did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Andrea van Schalkwyk is a value investor who adheres to the principles of the renowned Warren Buffett and his mentor Benjamin Graham. He holds a Master of Engineering (MEng) from the University of Padua and an Executive MBA from the CUOA Business School.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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