Within the realm of publicly traded securities, socially responsible stocks are no stranger to controversy. The common belief that prioritizing sustainability comes at the cost of profitability might be due for a shift. In reality, ethical business practices could be the key to superior financial outcomes. With the modern consumer, especially the forward-thinking Generation Z cohort, showing a preference for companies that prioritize more than just profits, socially responsible stocks could hold the winning ticket in the long haul.

The current landscape is ripe with academic proof suggesting that a company’s ethical conduct can play a pivotal role in driving profits. Given the evolving societal norms, it’s no wonder that businesses embracing ethical practices are on the rise. In light of these facts, below is a selection of socially responsible stocks destined for exponential growth.

Microsoft (MSFT)

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Microsoft (NASDAQ:MSFT) is not only a tech behemoth but also a frontrunner in numerous environmental, social, and governance (ESG) initiatives. Topping the charts as the number one company on Investor’s Business Daily’s 100 Best ESG Companies for 2023 list, Microsoft has shown almost 16% growth since the year’s start, proving its ethical and financial worth.

From a financial standpoint, Microsoft stands out among socially responsible stocks by promoting environmental and social equality while also delivering shareholder value. Throughout fiscal 2023, the company consistently outperformed earnings per share expectations, with an average positive surprise of 8.4%. With analysts forecasting EPS to reach $11.65 on revenue of $244.21 billion for fiscal 2024, a significant improvement over the previous year’s figures, Microsoft remains an attractive option.

Currently boasting a strong buy rating from experts and an average price target of $470.30, MSFT shows potential for a 10% upside.

Alphabet (GOOGL)

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Another tech giant, Alphabet (NASDAQ:GOOGL), stood firm as number 25 on IDB’s list of top ESG companies in the previous year. The company’s ownership of the Google ecosystem is a fundamental driving force that positions GOOGL for success, maintaining a dominant market share in the search engine arena. Despite a slower start this year, Alphabet has seen a commendable 43% surge over the past 52 weeks.

Analysts predict Alphabet could achieve an EPS of $6.81 on revenues of $342.33 billion in fiscal 2024, making significant strides from the previous year’s figures. Currently holding a strong buy consensus and a $165.37 price target, Alphabet presents an appealing 10% upside potential.

TJX Companies (TJX)

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Firmly securing its place among socially responsible stocks, TJX Companies (NYSE:TJX) is a discount retailer specializing in off-price apparel, shoes, and accessories. Placing 22nd on IDB’s 2023 list of top ESG businesses, TJX could see a surge in demand for affordable business casual wear as normalcy returns.

With TJX stock showing gains of nearly 7% since the start of the year and over 33% in the past 52 weeks, the company presents commendable performance metrics. These are promising signs for a discretionary retailer in the market.

Socially Responsible Stocks: A Deep Dive into Financial Performance

Airborne Success: Air Products and Chemicals (APD)

Consider Air Products and Chemicals (NYSE:APD) – a company that deals in atmospheric gases, process and specialty gases, and related services around the globe. Blink, and you might miss its number 18 spot on IDB’s ESG list from the previous year.

Now, year-to-date share prices have taken a hit, plummeting 13% and leaving stakeholders spinning. The market was particularly ruffled when Q4 earnings were revealed. Management disclosed an EPS of $2.82, a far cry from the projected $3 per share analysts had anticipated.

Regardless of this turbulence, don’t dismiss APD just yet. Projections for fiscal 2024 show a rosier picture, with the company expected to unveil an EPS of $12.33 on sales totaling $12.68 billion. A minor uptick from last year’s $11.51 per share on sales of $12.6 billion.

In the eyes of analysts, APD holds promise, carrying a moderate buy rating alongside a $272 price target. Bearing in mind the 15% potential growth, could this be the gem hidden among socially responsible stocks waiting to be discovered?

Sweet Returns: Mondelez (MDLZ)

Enter Mondelez (NASDAQ:MDLZ) – an international powerhouse dabbling in confectionary, food, beverages, and snacks. A name that resonates with both investors and consumers alike, especially during economic downturns where indulging in the sweeter things takes precedence.

Although MDLZ shares have dipped slightly since the beginning of the year, a more extensive 8% climb over the past 52 weeks beckons attention. Financially robust, Mondelez surprised the market by exceeding EPS expectations consistently throughout fiscal 2023, each time by an average of 8.2%.

Experts are painting a brighter picture for the current fiscal year, predicting an EPS of $3.52 on $37.14 billion in sales. A positive shift from the $3.19 per share on $36.02 billion reported last year. With such projections, a strong buy sentiment lingers with an enticing $83.47 price target. Undoubtedly, one of the top contenders in the realm of socially responsible stocks.

Fertile Ground: Bunge (BG)

Consider the significance of Bunge (NYSE:BG) – a global agribusiness and food conglomerate making waves worldwide. A star player operating through four key segments: Agribusiness, Refined and Specialty Oils, Milling, Sugar, and Bioenergy. Tucked neatly at spot number 11 on IDB’s ESG checklist.

In a landscape rife with uncertainty, BG stock hasn’t had it easy. Geopolitical unrest and logistical nightmares have sent shares on a rollercoaster ride. Yet, a noteworthy 6% climb over the past year hints at better days ahead. Fiscally, Bunge proved its mettle in the previous year, stunning investors with an incredible average earnings surprise of 22.65% across four consecutive quarters.

The road ahead may present challenges, with anticipated EPS figures of $9.44 on $56.33 billion in sales for 2024. A gentle dip from last year’s $13.66 EPS on $59.54 billion revenue. However, with a high-side revenue estimate winking at $65.47 billion, hope remains alive and well.

Analysts maintain a hopeful stance on BG, marking it as a moderate buy with a target price of $115.30. This projection hints at a promising 16% growth window for earnest investors.

Creative Growth: Adobe (ADBE)

Adobe: Weathering the Storm with an Eye on Brighter Horizons

Driving the Creative Economy

In the vast landscape of technology enterprises, Adobe (NASDAQ:ADBE) stands tall as a software giant, renowned for its iconic Photoshop program and suite of tools catering to the creative community. Amidst the burgeoning gig economy, Adobe’s significance transcends conventional boundaries, carving a vital niche in the digital realm. Noteworthy is the company’s rank at number 14 on IBD’s prestigious ESG list, a testament to its commitment towards sustainable practices.

Riding the Waves of Market Volatility

While 2024 dawned with financial turbulence for Adobe, witnessing a dip of nearly 14% in equity value, a broader perspective unveils a more resilient narrative. Over the past 52 weeks, the company has surged by an impressive 35%, embodying a spirit of adaptability amidst shifting market trends. The red ink staining its recent performance may well serve as a camouflage for a discounted opportunity waiting to unfold. The fiscal year gone by saw Adobe surpass EPS estimates consistently across all four quarters, recording an average positive earnings surprise of 2.85%.

Anticipating a Year of Growth and Innovation

Peering into the future, all signs point towards a promising trajectory for Adobe in 2024. Analysts project an anticipated EPS of $18.04 alongside robust sales figures totaling $21.46 billion. Contrasting this with the previous year, where earnings per share stood at $14.81 on revenues of $17.89 billion, outlines an upward trajectory indicative of the company’s growth momentum.

Analyst Projections and Investment Potential

Casting a glance at the investment landscape, analysts collectively endorse a moderate buy stance on ADBE, affixing a target price of $620.63. This projection hints at a substantial upside potential exceeding 24%, underlining investor faith in Adobe’s resilience and growth prospects amidst volatile market conditions.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.