Canada Markets closed

Rebound Rockets: 3 Beaten-Down Stocks You’ll Be Happy You Own in 2032

edit U-turn
edit U-turn

Written by Amy Legate-Wolfe at The Motley Fool Canada

The next decade is going to be a time of growth in a few years. Though it may not seem that way right now, it’s certainly true. And there are some areas that are going to see some incredibly intense growth, given these are beaten-down stocks at the moment.

Which ones will likely grow the most? I would watch these three till 2032.

Brookfield Renewable

Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a great option for Canadians looking for growth from beaten-down stocks. Shares of Brookfield are down 13% since August, providing you with a great opportunity to pick up the stock at valuable levels.

Why is it so valuable? Brookfield invests in renewable assets in practically every category. Further, it buys up assets around the world and has been growing and growing as of late. This comes especially as European countries look to come out of dependence on Russian oil and create their own power sources.

With a compound annual growth rate (CAGR) of 15.6% in the last two decades, this is very likely to continue in the next decade and beyond — all while investors lock in a dividend of 3.59% that’s grown at a CAGR of 5% in the last two decades as well.

CP stock

Canadian Pacific Railway (TSX:CP)(NYSE:CP) is another of the beaten-down stocks to consider during all this downturn. CP stock has made some major moves in the last few years, and it looks like its acquisition of Kansas City Southern is all but assured. Given that, it’s going to become the only railway to run from Canada down to Mexico, picking up even more revenue along the way.

But beyond this acquisition, there’s even more to look forward to with CP stock. The company went through a major overhaul to reinvigorate the business and find ways to cut back costs. After this, it now has the funds available to invest in acquisitions, but also to upgrade its rail system. This includes hydrogen-fuel-cell railcars, putting the company well into a renewable energy future.

After shares climbed this year, they’ve come back down in the last few months, down 12% since August as of writing. This provides you with a solid point to jump in and lock in a 16.25% CAGR from the stock alone.

Magna stock

Finally, Magna International (TSX:MG)(NYSE:MGA) is one of the severely beaten-down stocks I’d still consider through 2032. Again, renewable energy has been a focus in this article for a reason. There are a lot of opportunities, and Magna stock offers that with its focus on clean energy vehicle production.

The car manufacturer provides car parts, but also electric components. Right now, it’s been struggling with supply-chain disruptions. But this won’t last forever, and it has deals with several major car manufacturers to provide parts for the shift to electric vehicles over the next decade and beyond.

With shares down an incredible 32% year to date, I would certainly pick up the stock at these levels, as it trades near 52-week lows! Then put on your blinders for now. After all, even at these levels, you’re still looking at a CAGR of 8.54% over the last two decades.

The post Rebound Rockets: 3 Beaten-Down Stocks You’ll Be Happy You Own in 2032 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 September 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 21 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 9/14/22

More reading

Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners and Canadian Pacific Railway Limited. The Motley Fool recommends Magna Int’l. The Motley Fool has a disclosure policy.

2022