9 Top Sustainable Stocks That Are Undervalued Now
After a rough start to the year, sustainability leaders including Adobe, Salesforce, and Disney are trading at discounts.
Market Update
Mentioned: Aptiv PLC (APTV)
, Adobe Inc (ADBE)
, Salesforce Inc (CRM)
, Alphabet Inc (GOOGL)
, Booking Holdings Inc (BKNG)
, AT&T Inc (T)
, Apple Inc (AAPL)
, The Walt Disney Co (DIS)
, Microsoft Corp (MSFT)
, Air Products & Chemicals Inc (APD)
Strategies focused on sustainable investing have languished this year, following the decline in technology stocks while largely missing out on the energy rally. However, there is some good news: Companies with leading sustainability practices such as Adobe (ADBE), Salesforce (CRM), and Aptiv (APTV) are now trading well below their fair value estimates.
The Morningstar US Sustainability Leaders Index--a collection of 50 U.S. large-cap stocks with the strongest environmental, social, and governance risk scores--is down 14.7% year to date as of April 18, 2022, 6 percentage points behind the Morningstar US Market Index. As large- and mega-cap tech companies are heavily represented in the sustainability leaders group, the index fell more closely in line with the Morningstar US Technology Index, which lost 16.9% during the same period.
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Lauren Solberg does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.