QUALCOMM Incorporated (QCOM): Among the Cheap ESG Stocks to Buy According to Hedge Funds

We recently compiled a list of the 11 Cheap ESG Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other cheap ESG stocks.

These days, it seems like everyone wants to wear the “saving the world” cape. Whether this urge to make a real impact on the world stems from a desire to ride the social trend wave or simply out of genuine concern is, well, a debate for another day. For now, let’s focus on the fact that all companies must adhere to Corporate Social Responsibility (CSR) by law.

In other words, ESG companies are those that incorporate Environmental, Social, and Governance factors into their operations and decision-making. This framework is utilized to measure an organization’s practices and performance on sustainability and ethical grounds. In capital markets, some investors employ ESG criteria to assess companies and make their investment decisions accordingly, a practice known as ESG investing. While investing delivers financial returns, ESG investing offers both financial returns and societal impacts, and that’s what is most valued by some investors.

Some believe ESG investing is aligned with reduced risk exposure, stakeholder interests, and superior returns. Not only attractive in theory, but there are reports that back this form of investing. For instance, the Sustainability Megatrends Report by Cushman & Wakefield reveals that ESG companies are gaining traction from institutional investors. A survey of 250 institutional investors indicated that around 60% noted higher performance yield from ESG investments, and 78% were willing to pay higher premiums for these funds.

“Institutional investors are showing increased demand for properties with strong ESG-related management and activities,” the report underscores.

A US SIF "Trends Report" reveals that out of the US market size of $52.5 trillion, $6.5 trillion (12%) is identified as a sustainable or ESG investment. Having said that, as many as 73% of respondents believe the sustainable investment market will grow over the next few years. Therefore, community investing continues to shine with rising enthusiasm across several types of investors.

ESG companies are mainly ranked by third-party ranking agencies based on how well they perform across Environmental, Social, and Governance indicators. Using standardized metrics, proprietary models, and disclosures, the companies are then assessed and compared. Among the most notable agencies are MSCI, Sustainalytics (by Morningstar), Refinitiv ESG Scores, and S&P Global ESG Scores. In this analysis, we have used the ratings by Sustainalytics, which covers over 15,000 firms across 42 industries globally. The firm recently disclosed its 2025 list of ESG Top-Rated Companies, identifying Global 50 Top-Rated companies and other regional and industry leaders. Given this, we will take a look at some of the best ESG stocks to consider.

Our Methodology:

We have compiled a list of 11 companies ranked by Sustainalytics (by Morningstar) in its recent ESG Top-Rated Companies report. From the report, we identified companies with a forward P/E less than 15, extracted from FINVIZ. From there, we picked companies with the highest number of hedge fund investors, as per Insider Monkey's database of Q4 2024. From less preferred to highly preferred, according to hedge funds, the selected stocks are listed in either the global, regional, or industry standings in the report.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge funds holding: 79

Forward P/E as of May 06, 2025: 11.61

QUALCOMM Incorporated (NASDAQ:QCOM), headquartered in California, is a digital telecommunications provider, operating through three segments, namely Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). With a market capitalization of $162.449 billion, the company is recognized as the 158th most trusted company in America by Forbes. The core values of the company include empowering people, transforming communities, and protecting the planet. It is among the best cheap stocks to consider.

One thing the company is mastering is fulfilling its social responsibility. QUALCOMM Incorporated (NASDAQ:QCOM) has launched an Africa Innovation Platform, featuring mentorship, education, and training programs to facilitate Africa’s technology development. As part of this program, resources are provided for local universities, small-to-medium startups, and grant participants, offering them Qualcomm technical experts and innovative capabilities for mobile platforms and technologies. All of this was done through collaboration with the African Telecommunications Union.

QUALCOMM Incorporated (NASDAQ:QCOM) claims to combine leading performance and power efficiency in its products. QCOM is leveraging its strong footing in the development of building power-efficient smartphone devices in all of its product categories, with the new version being sustainably better than the previous one. In addition, the company has enhanced its collaborations with wireless networks and service providers in initiating technologies that deliver better power efficiency in communication networks. One can’t ignore the company’s efforts towards adopting energy-efficient specifications for a greener wireless ecosystem by partnering with wireless communications standard development organizations.

Other initiatives by the company include increasing digital health literacy through the Tech2Home Care Unit program, vaccinating rural communities, supporting HIV education, and other programs strengthening STEM education and accelerating the Wireless Reach project. QUALCOMM Incorporated (NASDAQ:QCOM) is also increasingly taking water-saving measures, and the most notable of these is its state-of-the-art water-saving technology named Local Scrubber Drain (LSRD).

Overall QCOM ranks 3rd on our list of cheap ESG stocks to buy according to hedge funds. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than QCOM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.