Canada Markets open in 2 hrs 14 mins
  • S&P/TSX

    20,197.61
    +15.69 (+0.08%)
     
  • S&P 500

    3,901.36
    +0.57 (+0.01%)
     
  • DOW

    31,261.90
    +8.77 (+0.03%)
     
  • CAD/USD

    0.7790
    -0.0009 (-0.1207%)
     
  • CRUDE OIL

    110.35
    +0.46 (+0.42%)
     
  • BTC-CAD

    38,114.87
    +180.59 (+0.48%)
     
  • CMC Crypto 200

    650.34
    -23.03 (-3.42%)
     
  • GOLD FUTURES

    1,845.10
    +3.90 (+0.21%)
     
  • RUSSELL 2000

    1,773.27
    -2.96 (-0.17%)
     
  • 10-Yr Bond

    2.7870
    -0.0680 (-2.38%)
     
  • NASDAQ futures

    11,838.00
    -40.25 (-0.34%)
     
  • VOLATILITY

    29.43
    +0.08 (+0.27%)
     
  • FTSE

    7,389.98
    +87.24 (+1.19%)
     
  • NIKKEI 225

    26,739.03
    +336.19 (+1.27%)
     
  • CAD/EUR

    0.7372
    +0.0007 (+0.10%)
     

Ballard Power Stock Drops 10% on Monday: Time to Buy?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
consider the options
consider the options

Written by Amy Legate-Wolfe at The Motley Fool Canada

Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP) shares fell by up to 10% on Monday, as the wider market dropped right along with it. But as this clean energy company falls, should investors see it as an opportunity to buy Ballard Power stock?

What happened?

It seems investors wanted to take their returns on Monday after Ballard Power stock climbed to about $13.75 last week. This came after news the company would be expanding its partnership with Canadian Pacific Railway.

CP stock ordered eight more 200-kilowatt fuel cell modules from Ballard Power stock. This would support the railway’s hydrogen locomotive program, bringing it from one to three locomotives sometime this year. As CP continues to “significantly expand” its program, Ballard Power looks like it can climb right along with it.

So what?

Let’s first look at this deal. The recent addition brings the order from CP to a total of 14 hydro fuel cells. But it seems to only be the beginning. By 2030, Ballard Power stock estimates that the hydrogen-electric train business will reach $4 billion. And it’s already seen the benefit of this move in the United Kingdom, and in Europe and Asia. And even better news? Part of the expansion will be funded by the Emissions Reduction Alberta (ERA) program, giving the deal $15 million to address climate change.

Now, let’s look at the big picture for Ballard Power stock. When the rest of the world is focused in on electric vehicles, this company focused in on every other type of vehicle. Buses, army and marine vehicles, and, yes, trains — Ballard addresses them all. That leaves an endless amount of room for the hydrogen fuel cell company to expand.

Now what?

Ballard Power stock remains significantly below fair value, especially considering the growth over the next few years. Analysts give it a consensus target price of $26 as of writing. That’s more than double its share price of $12, as of writing.

Now, granted, some target prices dropped recently thanks to the supply-chain demand Ballard Power stock continues to experience. Even still, analysts believe the company has as strong future ahead. Even in the next year. It has $1.2 billion on the books, making it an ideal company for merger and acquisition growth in 2022.

So, is Ballard Power stock a buy? I’d say, absolutely — especially for long-term investors looking for a great deal.

The post Ballard Power Stock Drops 10% on Monday: Time to Buy? appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Ballard Power Systems Inc. (usa)?

Before you consider Ballard Power Systems Inc. (usa), we think you’ll want to hear this.

Our S&P/TSX market doubling* Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could supercharge any portfolio.

Want to see if Ballard Power Systems Inc. (usa) made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.

Click Here to Learn More About Stock Advisor Canada Today * Returns as of 1/18/22

More reading

Fool contributor Amy Legate-Wolfe owns Canadian Pacific Railway Limited. The Motley Fool has no position in any of the stocks mentioned.

2022

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting