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3 Incredibly Cheap Energy Stocks to Buy Now

Solar panels and windmills
Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

If you’re looking in the oil and gas sector for cheap energy stocks, I have to tell you. You’re likely looking in the wrong place. The climbing price of oil and gas at the pump has led to higher share prices. And that’s certainly great for now, but it doesn’t create value – especially in the long term.

That’s why today we’re going to look at three cheap energy stocks to consider right now. These are in renewable sectors that will likely provide investors with value not only right now, but for years and even decades to come.


It’s true, shares of Cameco (TSX:CCO) have surged in the last few years. A key driver is the higher price of spot uranium, as well as the company’s continued expansion through acquisitions. Add in the continued demand for renewable energy in other countries, and it’s a winning scenario.


But that doesn’t mean there’s no value to be had. Cameco stock has surged in share price as the company recently reported earnings that flew past estimates. A lot of this performance came from the company’s recent acquisition of Westinghouse. Yet more could certainly be on the way.

In fact, Cameco management said as much during its recent earnings report, predicting even more strength in the next year. And that’s likely to continue as the world continues to seek out uranium. So even with shares up 86% in the last year, that could easily happen once more.

Brookfield Renewable

After years of shares rising to all-time highs only to sink near all-time lows, Brookfield Renewable Partners LP (TSX:BEP.UN) is making a comeback. The share price of the renewable energy asset company recently roared up the chart. This performance was propelled by strong first-quarter earnings.

BEP stock also looks like a strong choice as it has partnered with Cameco stock through the Westinghouse energy asset. Furthermore, it recently partnered with Microsoft (NASDAQ:MSFT) to provide 10,500 gigawatts of power for its artificial intelligence data centre expansion.

With so much promise in the future, and strong earnings to boot, it too looks like a strong energy stock. And one that continues to offer a cheap share price, as shares are still down 14%. All while receiving a 5.32% dividend yield.

Northland Power

Finally, if you’re seeking out dividends, then I would go with still-undervalued energy stock Northland Power (TSX:NPI). NPI stock offers monthly dividends, as well as a diversified portfolio of renewable energy assets. From wind to solar power, the company has been expanding as well.

With strong fourth-quarter 2023 results followed by first-quarter 2024 results driving a surge in share price, it’s a great time to buy NPI stock. Because while it may have jumped 4% ahead of earnings, it’s still up 27% in the last year. Add in a 5.5% dividend yield, and it’s a strong energy stock to consider on the TSX today. So while the company may be coming back, there is still a lot of value to lock up with this dividend stock.

The post 3 Incredibly Cheap Energy Stocks to Buy Now appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners and Microsoft. The Motley Fool recommends Brookfield Renewable Partners, Cameco, and Microsoft. The Motley Fool has a disclosure policy.