5 Cheap ESG Stocks to Buy Now

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1. Meta Platforms, Inc. (NASDAQ:META)

Forward P/E as of 11/8: 11.79

Number of Hedge Fund Holders: 184

Meta Platforms, Inc. (NASDAQ:META) ranks among the leading ESG companies given that its mission is to give people the power to build community and to bring the world closer together. Meta Platforms, Inc. (NASDAQ:META) has also worked to build a diverse and inclusive workplace and is striving for net zero value chain emissions in 2030.

ClearBridge Investments commented on Meta Platforms, Inc. (NASDAQ:META) in a Q3 2022 investor letter,

“Meta Platforms, Inc. (NASDAQ:META), one of two overweights among the mega cap stocks, underperformed in the third quarter (-15.9%) and is the Strategy’s largest detractor year to date. Meta has also trailed mega cap advertising peer Alphabet, which we don’t own, as revenue growth has slowed due to tough comparables to a strong e-commerce environment in early 2021, negative impacts from Apple’s privacy changes and rising expenses.

While we have trimmed our position close to 20%, we remain invested as we do not think the stocks’ valuation at about 13x consensus 2023 earnings appropriately reflects its long-term earnings and free cash flow generation potential. Despite current revenue headwinds, we believe Meta is well-positioned to navigate industrywide changes to advertising targeting and its transition to the Reels short-form video format will monetize in the coming years, helping to re-accelerate revenue growth.

We also welcome Meta’s implementation of cost-cutting measures, which should help uncover the company’s high underlying profitability. Lastly, we see Meta’s investments in augmented reality as a call option for long-duration investors.”

Of the 895 funds in our database at the end of Q2 2022, 184 owned shares of Meta Platforms, Inc. (NASDAQ:META), ranking the company #1 on our list of 10 Cheap ESG Stocks to Buy Now.

You can also take a look at 20 Most Admired Companies in the World in 2022 and 15 Biggest Dow Companies By Market Cap.

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