Investing

Goldman Sachs Has 4 Underowned Red-Hot ESG Stocks to Buy Now

Etsy

This company posted outstanding second-quarter results. Etsy Inc. (NASDAQ: ETSY) operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. The company’s primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs.

For sellers, Etsy offers a range of tools and services that address key business needs. In addition, the company owns Reverb, a leading global online marketplace dedicated to buying and selling new, used, and vintage musical instruments.

Goldman Sachs has a price target of $172, which is well above the consensus target price of $153.12. Etsy stock closed at $139.73 per share on Monday.

Kimco Realty

This top real estate investment trust (REIT) makes sense for investors who are more conservative. Kimco Realty Corp. (NYSE: KIM) has specialized in shopping center acquisitions, development and management. It owns and operates the nation’s largest portfolio of neighborhood and community shopping centers with interests in the company-owned interests in 430 U.S. shopping centers comprising 75 million square feet of leasable space, primarily concentrated in the top major metropolitan markets.

Kimco shareholders receive a solid 3.60% distribution. The $16 Goldman Sachs price target that compares with the $13.47 consensus target, as well as the $11.11 per share final trade of Kimco Realty stock on Monday.

Shopify

After being on fire for most of 2020, the shares were hit hard during the September tech sell-off, but they have rallied back smartly. Shopify Inc. (NYSE: SHOP) is a cloud-based provider of e-commerce solutions to small businesses and entrepreneurs. Its core Subscription Solutions includes front-end website features such as design (across desktop, mobile and tablet) and a fully integrated back end support system, including order management, point-of-sales and a multichannel experience with over 70 payment gateways.

Forecasted earnings estimates for Shopify’s third quarter that ended September 30, 2020, and the full-year expectations for 2020 and 2021 have been scaled up. The third-quarter earnings estimate has been raised to $0.51 per share from $0.48 The 2020 estimate has been raised to $2.49 per share from $2.44, and the 2021 estimate has increased from $2.30 per share to $2.38.

Goldman Sachs has set a stunning $1,318 price target. The posted consensus target is $1,113.13, and Shopify stock closed most recently at $1,038.05 a share.


Again, the ESG group represents a new attitude among investors about how companies should be run, and while perhaps not as significant as artificial intelligence or self-driving electric vehicles, it speaks volumes about the evolution of investors and probably will dominate discussion and investment choices in the years to come.