In this article, we discuss 5 best ESG stocks to buy now. If you want to see more best ESG stocks to buy now, the risk/reward and methodology of this list, go directly to 12 Best ESG Stocks To Buy Now.
5. UnitedHealth Group Inc. (NYSE:UNH)
% of Funds as of 11/28/2022: 1.58%
Number of Hedge Fund Holders: 110
Healthcare insurance giant UnitedHealth Group Inc. (NYSE:UNH) has a dedicated approach to sustainability and inclusion. In terms of environmental health, UnitedHealth Group Inc. (NYSE:UNH) hopes to achieve operational net zero emissions by 2035. The company is also advancing health equity by committing $100 million to create a new health workforce diversity program. As of 11/28, UnitedHealth Group Inc. (NYSE:UNH) accounted for 1.58% of the Vanguard ESG U.S. Stock ETF (ESGV).
4. Alphabet Inc. (NASDAQ:GOOG)
% of Funds as of 11/28/2022: 1.8%
Number of Hedge Fund Holders: 156
As one of the leading tech companies in the world, Alphabet Inc. (NASDAQ:GOOG) has dedicated substantial resources to ESG. In 2020, for example, Alphabet Inc. (NASDAQ:GOOG) became the first major company to be carbon neutral for its entire operating history by compensating for its legacy carbon footprint. In recent years, Alphabet Inc. (NASDAQ:GOOG) has helped lower the cost to access the internet by making cheaper operating systems for smartphones and computers to benefit communities in developing countries. 156 hedge funds we track owned shares of Alphabet Inc. (NASDAQ:GOOG) at the end of Q3.
3. Amazon.com, Inc. (NASDAQ:AMZN)
% of Funds as of 11/28/2022: 2.61%
Number of Hedge Fund Holders: 269
E-commerce and cloud computing leader Amazon.com, Inc. (NASDAQ:AMZN) has an ambitious plan to help communities around the world by helping build satellite internet with Project Kuiper. The company is also on the path to powering its operations with 100% renewable energy by 2025. Longer term, Amazon.com, Inc. (NASDAQ:AMZN) has a commitment to be net zero carbon by 2040. Amazon.com, Inc. (NASDAQ:AMZN) ranks #3 on our list of 12 Best ESG Stocks To Buy Now given its weight of 2.61% in the Vanguard ESG U.S. Stock ETF (ESGV).
2. Microsoft Corporation (NASDAQ:MSFT)
% of Funds as of 11/28/2022: 5.82%
Number of Hedge Fund Holders: 269
Leading software maker Microsoft Corporation (NASDAQ:MSFT) is committed to sustainability with a goal to be carbon negative by 2030. The company also hopes to replenish more water than it uses and to be zero waste across its direct waste footprint by the same year. At the end of Q3, Microsoft Corporation (NASDAQ:MSFT) was among the most popular stocks among elite institutions with 269 hedge funds in our database owning shares.
Baron Funds commented on Microsoft Corporation (NASDAQ:MSFT) in a Q3 2022 investor letter,
Shares of Microsoft Corporation (NASDAQ:MSFT) pulled back with the overall software industry on the back of macroeconomic issues, including inflation concerns and rising interest rates. The company reported another strong quarter, highlighted by total revenues growing 16% on a constant currency basis and Microsoft Cloud revenues, now 48% of total sales, growing 33%, with Azure (Microsoft’s infrastructure cloud) growing 46%. These results were driven by strong demand for large commercial cloud contracts, as more businesses are standardizing on Microsoft’s platform and the company is signing larger and longer deals. Initial fiscal year 2023 guidance calls for healthy double-digit revenue and operating income growth. Both foreign exchange and personal computer headwinds were contemplated in the guidance and have continued to worsen, but we have conviction in the company’s strong competitive positioning, durable growth drivers, and margin expansion opportunity over the mid- to long term.
1. Apple Inc. (NASDAQ:AAPL)
% of Funds as of 11/28/2022: 7.11%
Number of Hedge Fund Holders: 140
Smartphone maker Apple Inc. (NASDAQ:AAPL) has been carbon neutral for its corporate operations since 2020 and the company has an ambitious goal to make carbon neutral products by 2030. With innovation, Apple Inc. (NASDAQ:AAPL) has reduced its average product energy use by 70% since 2008 and with further advances, it could be possible to lower the average product energy use even more. Given its weight of 7.11% in the Vanguard ESG U.S. Stock ETF (ESGV), Apple Inc. (NASDAQ:AAPL) ranks #1 on our list of 12 Best ESG Stocks To Buy Now.
Wedgewood Partners commented on Apple Inc. (NASDAQ:AAPL) in a Q3 2022 investor letter,
Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.
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