Not too long ago, investors were betting big on environmental, social and governance (ESG) goals, and pushing companies to do the same. Now, the tables have turned, and an anti-ESG movement is gaining power on Wall Street. If you want to ride that wave, it is time to consider anti-woke stocks.
Essentially, anti-ESG groups want companies to avoid prioritizing ESG initiatives. In 2023, these groups have already filed 68 proposals related to this thinking… and Axios reports that companies now want to avoid ESG. In fact, one climate-focused insurance alliance has continued to see insurers bail as the backlash grows.
With ESG investing on the outs, that creates a real “in” opportunity with anti-woke stocks. Here are three worth your attention right now:
Occidental Petroleum (OXY)
As one of the largest oil producers in the U.S., Occidental Petroleum (NYSE:OXY) ranks among the anti-woke stocks. It comes down to politics. According to a relatively recent Gallup poll, a staggering 71% of Republican voters stated they would never purchase an electric vehicle.
Another reason why OXY ranks among the stocks benefitting from ESG backlash is scientific reality. While Democrats promise an electrified future, the current grid apparently can’t handle too many air conditioners running simultaneously.
But somehow, the grid can handle everyone charging EVs? I don’t think so. Thus, OXY makes perfect sense, whether you want to invest in the anti-woke trend or not.
Newmont (NEM)
Precious metal miner Newmont (NYSE:NEM) aligns perfectly with the ESG backlash that’s storming through American society right now. Fundamentally, Newmont’s case comes down to addressing hypocrisy.
Generally, it’s probably not a stretch to assume that people don’t like the idea of slaughterhouses. At the same time, that filet mignon had to come from somewhere. It didn’t just materialize like that on your plate. And it’s the same principle with Newmont. Nobody wants to think about the horrible environmental impact and social inequities stemming from gold mining. But folks sure do like their shiny jewelry!
And it’s not just jewelry. That computer, phone or tablet that you’re using to read this article uses precious metals. It’s quite possible that the extraction process involved in getting those metals was not environmentally or socially friendly.
Therefore, NEM ranks among the top stocks benefitting from ESG backlash. Because whether you want to invest in the anti-woke trend or not, Newmont might be permanently relevant.
Tyson Foods (TSN)
Listed in the holdings of the God Bless America ETF (NYSEARCA:YALL), Tyson Foods (NYSE:TSN) might not initially seem like a beneficiary of an ideologically motivated movement. Then again, Tyson does the chop-chop. Ranking among the world’s largest food companies and a recognized leader in animal protein, its business is certainly not for the faint of heart.
However, the food that people throughout the world enjoy must come from somewhere. It’s an ugly job, but Tyson’s willing to do it.
Adding to its “street cred” as one of the stocks to buy amid ESG backlash, Tyson successfully defended itself against a lawsuit that alleged seven employees contracted Covid-19 due to the company’s lax pandemic mitigation protocols.
It does have a soft spot though. Per its website, Tyson offers plant-based meat products. So, it’s not full-on anti-ESG.
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.
