Writing for Cabot, Timothy Lutts, chief investment strategist and editor of the website's Stock of the Month report, explained that because these newer devices use semiconductor technology to create light, they require less energy.
As a result, there is less wasted heat which is better for the environment.
"At the moment, these lights are still not cost-effective for homeowners, although if you really want to avoid the mercury risk you might justify it. But efficiencies are improving fast," Mr Lutts stated.
He also pointed out that efficiency in the sector has doubled approximately every 36 months.
Many residents of the US town of Billings also seem to be aware of the benefits of LED technology, as they have started a petition to get more of the devices used to light the area's roads.
