These 8 stocks are the best bets for investors looking to crush the market and save the environment at the same time

  • Analysts from RBC Capital Markets compiled a list of top environmental, social, and governance-based investment ideas.
  • Companies included in the the firm’s Global ESG Best Ideas report were selected based on ESG factors, coupled with a fundamental financial analysis.
  • The list includes industries such as software, banking, biotechnology, and semiconductors.
  • Here are the top eight US-based companies RBC says socially conscious investors can bet on to beat the market.
  • Visit the Markets Insider homepage for more stories.

RBC Capital Markets recently published its inaugural Global Environmental, Social and Governance Best Ideas list.

The report features 39 of the firm’s top picks for companies with strong ESG practices that are also smart investment ideas.

RBC’s analysts chose the companies by assessing ESG factors in addition to completing a fundamental financial analysis.

Based on the list, here are the top eight US-based stocks that RBC says socially conscious investors can buy to beat the market in 2019. They’re ranked in increasing order of implied return to price target. All quotes are attributable to the RBC team.


8. Salesforce

Ticker:
CRM

Price target: $US181

Implied return to price target: 13%

ESG rationale: “Maintained net-zero GHG emissions since 2018 and is more than halfway toward reaching its goal of 100 per cent renewable energy by 2022.”

Source: RBC Capital Markets


7. Agnico-Eagle Mines

Markets InsiderAEM stock

Ticker:
AEM

Price target: $US60

Implied return to price target: 17%

ESG rationale: “Contributes to the social and economic development of the communities in which it operates through development programs, local sourcing of goods and services, and local employment.”

Source: RBC Capital Markets


6. Owens Corning

Markets InsiderOwens Corning stock

Ticker:
OC

Price target: $US65

Implied return to price target: 17%

ESG rationale: “Focused on delivering sustainability-driven innovation across all businesses, including energy-efficient fibreglass insulation and roofing solutions.”

Source: RBC Capital Markets


5. Nvidia

Ticker: NVDA

Price target: $US200

Implied return to price target: 20%

ESG rationale: “NVIDIA strives to improve the energy efficiency of its products throughout the research, development, and design processes.”

Source: RBC Capital Markets


4. VMware Inc.

Markets InsiderVMW shares

Ticker: VMW

Price target: $US210

Implied return to price target: 22%

ESG rationale: “Ranked among industry leaders in the area of clean technology opportunities; VMWare’s virtualization and cloud computing solutions helped customers avoid 84 million metric tons of carbon dioxide in 2017.”

Source: RBC Capital Markets


3. Northern Trust Corporation

Markets InsiderNorthern Trust stock

Ticker:
NTRS

Price target: $US108

Implied return to price target: 23%

ESG rationale: “Committed to responsible investment, with USD 86 billion AUM, or 7.2 per cent of total AUM, invested in assets that incorporate ESG criteria as of year-end 2017.”

Source: RBC Capital Markets


2. Baker Hughes

Ticker:
BHGE

Price target: $US33

Implied return to price target: 36%

ESG rationale: “Committed to reduce CO2 equivalent emissions by 50 per cent by 2030, relative to a 2012 baseline, and to reach net zero by 2050.”

Source: RBC Capital Markets


1. Gilead Sciences

AP Photo/Paul Sakuma

Ticker:
GILD

Price target: $US91

Implied return to price target: 37%

ESG rationale: “The company has set a target to reduce global Scope 1 and 2 GHG emissions by 25 per cent by 2025, relative to a 2016 baseline, through renewable energy and energy efficiency technologies.”

Source: RBC Capital Markets

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