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7 Ethical Stocks Looking to Make a Significant Recovery after the Pandemic

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Shutterstock Image License - By Zakharchuk

If you are an ethical investor, then you are probably looking to see which companies are going to rebound right now. You don’t want to compromise your principles, even in the middle of a global pandemic and economic crisis. However, your strategy is going to differ post-COVID.

The financial markets are in a volatile zone, switching between the slight ray of sunshine to have a quicker recovery and the other extreme, the second wave of COVID-19. The overall GDP of the world economy is falling (and expected to contract by 4.9% in 2020), and unemployment levels are worse than ever before. Despite the pandemic’s depressing effects, there is still hope as the government aims for a liquid economy back to its routine transactions.

Nevertheless, there are a lot of great ethical companies that are posed to thrive in the coming months. Ethical investors can make a killing if they choose proven companies with a track record for sustainability.

Ethical investors are uncertain and wishing for the best from stocks that can quickly recover as we integrate the pandemic’s effects within the economy.

Following are seven stocks with sustainability and other ethical pledges that will make the most significant recovery after the epidemic. Keep reading to see why they will thrive and why they are ethical companies that deserve your support.

Unilever (NYSE: UL)

Consumer behavior has swayed since the beginning of the pandemic. Companies like Unilever are trying to be flexible enough to adapt to the changes that the pandemic will bring in. Unilever had flat sales in its food services area as restaurants shut down. To combat these effects, the company has set goals and targets that it hopes to achieve post-pandemic. The company’s stock may return to pre-pandemic prices, with an expected 3.39% yearly dividend.

Why is it an ethical company?

Unilever’s CEO has received praise in recent years for being one of the most ethical companies out there. the company also published a report titled The ‘Sustainable Living Plan,’ designed by Unilever, will work towards achieving environmental targets.

Zoom Video (NASDAQ: ZM)

Everything shifted towards digital platforms in the pandemic world, including the schools,

Colleges and university classes, office meetings, digital gyms, and even digital dates. The virtual meeting software company Zoom Video saw an increase in stock levels by up to 273%. Savvy traders with the right option trading strategy were able to capitalize on the momentum of this stock as it made very large moves quickly. We can expect this to keep rising, even after the economy returns to normal. Many educational institutes and corporations will still take extra precautions and continue their operations via digital platforms such as Zoom.

Why is it an ethical company?

Zoom is a company that has always been committed to sustainability. They launched the Zoom Cares initiative to lower their carbon footprint.

Amazon (NASDAQ: AMZN)

Amazon is the premiere eCommerce shopping experience with items ranging from electrical wires and tools to makeup products and millions of other things. The best part about Amazon is that you can shop with this extensive collection of products, right from your home. Therefore, after the pandemic hit, Amazon stocks went up a staggering 49% as everyone in the world now relied on e-commerce. The sales were booming as people were shopping for the necessary (and unnecessary) goods all from their homes.

Why is it an ethical company?

Amazon has been one of the front leaders in the fight against climate change for years. They recently created a $2 billion fund to fight climate change and have found ways to make it easier for customers to find eco-friendly products.

PayPal (NASDAQ: PYPL)

As banks were shut down because of the ongoing global virus, people relied extensively on digital payments companies. PayPal is an electronic payment company that relies on safe and fast transfers of money from one account to another, handled entirely digitally. Fin-tech companies were on the rise after the pandemic as PayPal’s stocks went up by a surprising 61% and are expected to grow as people rely on these even after the epidemic is over.

The general society believes that cash is the primary source of passing the virus from one individual to another. Even after the lockdowns have been lifting and the economies are operating normally, we will consider digital payment companies the new normal. With people still taking precautions not to risk their health again, cashless banking is mainstream. Therefore, companies like PayPal are the primary candidates for investors looking to play this sector.

Why is it an ethical company?

Paypal is constantly developing new technologies to lower its carbon footprint and help other brands do the same. You can find details in their annual Global Impact Report.

Dexcom (NASDAQ: DXCM)

After the pandemic took the world by storm, health care services were the most in-demand, and these companies earned the highest revenues at the beginning of the year. Dexcom manufactures electronic monitors of glucose for patients with diabetes. The pandemic caused a boom in their stock levels, and they were among the top S&P 500 as the stock rose by a shocking 85%. Health care stocks also went up for Regeneron (NASDAQ: REDG), aiming to find a cure for the COVID-19 similar to what it did with Ebola.

People are concerned about personal health and will prioritize taking multiple.

Precautions suggested by health care centers, which was not necessarily a priority pre-pandemic. The mindset now has changed for many, and we expect these stocks to keep moving north (especially with the second pandemic wave around the corner).

Why is it an ethical company?

Dexcom has done a lot to better communities they partner with. They regularly find new ways to make healthcare more accessible to disadvantaged communities.

Nikola (NASDAQ: NLKA)

Nasdaq performers such as Nikola, an American company that has been working towards zero-emission vehicles since 2016, saw a staggering increase of 554% in stock price. Nikola is finally beginning to deliver its promise and has recently started taking orders for its new electric pickup truck. Through a reverse merger, Nikola merged into the Nasdaq in June 2020, and its share price shot up by an astonishing rate, proving to be a success for the company.

Apart from the above mentioned, there are many other stocks which remain on the investor’s radar. The hospitality and traveling/shipping industry remains amongst the worst-affected with cruising bookings rescheduled, airline restrictions and vacation club owners looking to cancel their timeshare weeks due to the ongoing pandemic. Hence, a stock that holds a stable future is being presented (given the fact that it survives the pandemic).

Why is it an ethical company?

Nikola is a company that has done a lot to reduce customers’ carbon footprints. They developed a number of eco-friendlier options, such as better hydrogen electric trucks.

Carnival Corporation (NYSE: CCL)

Being one of the strongest hit-takers in the market (having massive outbreaks) was Carnival. The company took major hits and the stock traded below $10 during several sessions following the pandemic  Carnival Corporation suffered a $731 million write-off through its vessels’ goodwill charge impairment. However, being a smart player, the company raised enough liquidity through debt and equity to sail through the worst of times. The company has announced its plan to resume operations, and given that the pandemic ends, the operations would go back to full throttle. Carnival is one of the favorite stocks for an investment that could provide a significant recovery post-pandemic.

Why is it an ethical company?

Carnival Corporation does a lot to promote sustainability. They have outlined 10 sustainability goals and show their progress on reaching them with their annual report.

These Ethical Companies Deserve Your Support!

If you are an ethical investor, these stocks can help boost your portfolio while making a positive impact. This list is not exhaustive – many other ethical stocks are available at a competitive price. It all depends on the investor’s risk appetite, insight, and the knowledge of where to allocate resources. More importantly, the opportunity that the pandemic has provided to investors is one that comes once (sometimes twice) in a lifetime. It should not be missed!

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