Ecolab (ECL)

Ecolab is the world’s largest player in sanitation and cleaning services for industries such as hospitality and manufacturing. It offers products and services such as chemical cleaning agents, water treatment and recycling, pest control and quality monitoring and assurance.

Ecolab’s key value proposition comes from its size and scope of its offering. A Fortune 500 company can call Ecolab and get one-stop solutions for everything from pest control to water treatment and everything else necessary for keeping a factory safe and in compliance with environmental regulations.

Ecolab CEO Christophe Beck is laser-focused on water sustainability. Ecolab co-founded the Water Resilience Coalition and in a shareholder letter, Beck stated that: “By 2030, we [Ecolab] aim to restore more water than we consume in water-stressed areas, halve our carbon emissions and attain 100% renewable electricity use.” ECL stock is a great example of doing good for both the environment and shareholders.

Enel Chile (ENIC)

Enel Chile (NYSE:ENIC) is one of the large electricity producers in the nation of Chile. It operates as a subsidiary of the Italian firm Enel SpA.

Enel Chile stands out among global electricity firms because it has one of the fastest roadmaps to carbon-free power production. Chile is blessed with many rivers capable of producing large quantities of renewable hydroelectric power.

In addition, Chile’s Atacama Desert has some of the highest solar intensity in the world. This makes solar power investments significantly more profitable for Enel Chile than for most other electricity producers globally.

The cherry on top is that Chile has some of the world’s largest reserves of copper and lithium. This means that Chile will be an integral part of the global electrification move as companies mine these crucial metals to make batteries and other key inputs.

This, in turn, should drive substantial increases in Chile’s economy and demand for electricity. And Enel Chile is a downright cheap growth stock, with shares going for 2.61 times forward earnings. It also offers a large dividend yield.

The Southern Co. (SO)

The Southern Co: Reshaping the Power Landscape

A Shift in Power Generation

The Southern Co. (NYSE: SO) has been a longstanding force in the power utility sector, with a keen focus on serving the energy needs of southern U.S. states, including Georgia and Tennessee. Benefiting from a confluence of reasonably strong economic growth and favorable pro-business regulatory environments in these regions, Southern has seized a lasting tailwind for its growth trajectory.

In a dramatic internal reinvention, the company has notably transformed its power generation sources. In 2000, roughly 80% of its power was derived from coal-fired units. Fast forward to the present day, and this reliance on coal has dramatically plummeted to less than 20% overall. Moreover, Southern has committed to ultimately phasing out its remaining coal units.

Nuclear Momentum

Stepping into the void left by the reduced reliance on coal is nuclear power, marking a remarkable trend of resurgence in nuclear stocks. Investors are increasingly drawn to nuclear power as a dependable, cost-effective, always-on, and environmentally friendly source of baseload power. This pivot towards nuclear assets is expected to bolster Southern’s stock valuation as investors increasingly recognize the potential of nuclear power assets.

Favorable Market Conditions

Additionally, the recent dip in interest rates offers a favorable landscape for utility names, including SO stock. This, combined with the heightened appreciation for nuclear power assets, creates a propitious environment for Southern’s future growth and valuation, setting the stage for a potentially favorable trajectory in 2024.

On the date of publication, Ian Bezek held a long position in ECL stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.