22 - Here we go again

Trump's in - A stock to pick and some prediction for the climate economy

A step back in federal climate policy? ๐Ÿšซ๐ŸŒฑ

Under Trumpโ€™s first term, environmental policy experienced a marked shift ๐ŸŒ, with the U.S. pulling out of the Paris Agreement, rolling back key emissions standards, and expanding fossil fuel development ๐Ÿ›ข๏ธ๐Ÿ’จ.

With a renewed Trump administration, thereโ€™s a high chance that federal support for climate initiatives could decrease again โฌ‡๏ธ. This outcome is particularly concerning given the escalating urgency around climate change ๐ŸŒก๏ธ๐Ÿ”ฅ.

Key international climate agreements and global collaborative efforts could face renewed opposition or even abandonment by the U.S. ๐Ÿšซ, complicating worldwide efforts to curb greenhouse gas emissions ๐ŸŒ๐ŸŒฟ.

Trump on a red carpet before going to speak in front of a huge crowd

Implications for the green economy ๐Ÿšจ๐Ÿ’ฐ

Without federal incentives, renewable energy companies and green infrastructure projects may face challenges as subsidies and incentives wane โšก๐Ÿ’ธ.

Trumpโ€™s administration has traditionally favored fossil fuels, so we may see a surge in oil and gas initiatives with less stringent emissions regulations ๐Ÿ›ข๏ธ๐Ÿ“‰.

Industries like coal, oil, and even natural gas might experience a resurgence in support, directly competing with renewables for investment and market growth ๐Ÿ’ผ๐ŸŒ.

This could push the green economy onto the defensive, relying more on state policies and private sector initiatives to sustain momentum ๐ŸŒฑ๐Ÿ›๏ธ.

Stock spotlight

Halliburton Co. (HAL) ๐ŸŒ๐Ÿ”ง

I should not advice for this stock, because it is literally with low ESG score.

But as Trump secured the presidency, will probably Halliburton (HAL)

  emerge as a standout stock in an energy-focused landscape. Hereโ€™s why:

  • Attractive Valuation and Earnings Potential

    • P/E of 9.48 and forward P/E of 8.52 suggest the stock is undervalued, while EPS of 3.01 (and projected 3.35) points to steady earnings growth potential. With a PEG of 1.95, Halliburton offers growth at a reasonable price.

  • Institutional Confidence and Financial Stability

    • 88.22% institutional ownership indicates solid confidence in Halliburton, backed by strong liquidity ratios (quick ratio 1.54, current ratio 2.13) and a manageable Debt/Equity of 0.87.

  • Positioned for a Policy Shift Favoring Energy

    • Operating margin of 17.75% and profit margin of 11.61% give HAL a competitive edge to capitalize on potential new fossil fuel initiatives under a Trump administration.

Can green investments still thrive? ๐ŸŒฑ๐Ÿ’ธ

Though federal support may dwindle, private sector initiatives and certain state policies might continue to bolster green investments ๐ŸŒฑ๐Ÿ’ก.

States like California, New York, and Washington are likely to press forward with their ambitious climate agendas ๐ŸŒ, potentially offering incentives for clean energy companies and green tech ๐ŸŒž๐Ÿ”‹.

Moreover, consumer demand for sustainable products and services is rising ๐Ÿ“ˆ, especially among younger demographics ๐Ÿ‘ฅ.

This persistent demand, along with advancements in green technology ๐Ÿš€, could provide resilience to green companies despite shifts in federal policy.

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