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Environmentally-friendly stocks outperforming the market



Online investing platform Kapitall has identified three environmentally-friendly stocks that are outperforming the current market.

Methode Electronics Inc, Cognex Corporation, and Modine Manufacturing Company were all found to have a good environment rating whilst delivering over 20% returns in the last quarter.

The information comes from CSRHUB, which complies ratings on social, environment and governance factors for many major companies. In addition, the tool utilises data from socially responsible investment analysis firms, NGOs, government agencies, and other less common sources of investing information.

The figures highlight how fundamental numbers aren’t the only things that investors need to consider when looking for opportunites.

The outperforming stocks were found by searching for publicly traded names based in the US with an environment rating above 70, a market capitalisation above $100m and a 20% return, meaning they had outperformed the market. The research proves that investors can make a profit whilst remaining ethical.

Methode Electronics, which designs and manufactures electromechanical devices worldwide, has given an impressive performance over last quarter, registering 72.57% return. The company has an environment rating of 77. Similarly, Cognex Corporation and Modine Manufacturing Company recorded 42.54% and 32.98% respectively over the same period, with ratings of 79 and 72.

All three of these companies have been rallying above their 20-day, 50-day, and 200-day moving averages, and as a result, are considered to have strong upwards momentum.

Further reading:

Financial returns from ethical investment funds ‘better than mainstream’ in last 12 months

10 signs that sustainable investment is going mainstream

Responsible investment ‘outperforms mainstream’ in Australia

Best ethical investment funds named at Money Observer Fund Awards 2013

The Guide to Sustainable Investment 2013


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