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3 Renewable Energy Stocks That Are Too Cheap to Ignore

A solar cell panel generates power in a country mountain landscape.
A solar cell panel generates power in a country mountain landscape.

Written by Amy Legate-Wolfe at The Motley Fool Canada

Here at the Motley Fool, we love cheap stocks. Right now, the renewable energy sector offers up some majorly cheap stocks that investors should seriously consider right now. Why? Because renewable energy offers a major growth opportunity for those willing to buy and hold for years.

In fact, that’s another thing we love here at the Motley Fool: a buy-and-hold strategy is the easiest and most effective way to make returns. Today, I’m going to go over three renewable energy stocks that remain far too cheap to ignore for a second longer.

Brookfield Renewable

Brookfield Renewable Partners (TSX:BEP.UN) could be the biggest winner of the renewable energy transition. Among renewable energy stocks, it holds assets around the world in practically every sector. This even includes nuclear power, with the company making partnerships in recent months to produce nuclear power.

A major boost also came from countries wanting to get out of the control of foreign oil and create their own power at home. And we’re still really at the beginning stages of development in this industry. Yet Brookfield stock has access to growth in all areas.

With shares down about 13% year to date and a 4.46% dividend yield to consider, Brookfield stock is certainly one of the best renewable energy stocks to consider for years to come.

NPI

Another of the top renewable energy stocks to consider should certainly be Northland Power (TSX:NPI). While Brookfield has a wide range of assets, Northland focuses on one thing: offshore wind farms. And this shouldn’t be seen as a disadvantage.

With the entire world needing land more than ever, what with growing populations and the need for food, offshore wind farms are a saviour. This provides power without taking up the precious land we need. And what’s more, offshore wind farms provide far more energy than wind farms on land.

Northland power stock is also one of the few renewable energy stocks offering a monthly dividend. That dividend yield is at 3.19% as of writing, and shares are up 2% year to date, though down about 17% from 52-week highs. And trading at 13.56 times earnings, it’s certainly well within value territory.

Ballard Power

Finally, whereas many investors to renewable energy stocks might look at power or electric vehicles, Ballard Power Systems (TSX:BLDP) is an excellent choice for everything else. Its hydrogen power fuels marine vehicles, trains, subway systems, and even military equipment. So, this gives you exposure to the growth of every other vehicle on the face of the earth besides personal vehicles.

The company continues to expand its businesses, creating partnerships around the world, even here at home. There was certainly some worry because of the semiconductor shortage. However, once that’s over with, Ballard stock will likely be seen as one of those stocks you’ll wish you’d bought way back when.

Shares are down 49% year to date but up 16% in the last month alone after strong earnings came through. So, now is certainly the time to consider this among your cheap renewable energy stocks.

The post 3 Renewable Energy Stocks That Are Too Cheap to Ignore appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Brookfield Renewable Partners?

Before you consider Brookfield Renewable Partners, you'll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2022 ... and Brookfield Renewable Partners wasn't on the list.

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 15 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 11/4/22

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

2022