Renewable Energy Rebound: Buy These Value Stocks Up 10%

The fuel cell industry may be new, but it provides investors with incredible value as renewable energy stocks rebound from a pullback.

It’s been an interesting start to the year, with tech and renewable energy stocks seeing a climb and a fall in the market. Yet there now seems to be a rebound happening in the green stocks sector, with investors seeking out value rather than growth.

The rebound continued this week, with shares of fuel cell companies jumping by double digits in share price. That included Ballard Power Systems Inc. (TSX: BLDP)(NASDAQ: BLDP), which fell about 50% at the beginning of this year, but this week has seen a climb of 10% as of writing.

Why the jump in fuel cell stocks?

These stocks are solid companies within the green energy sector. That makes them highly valuable even at writing with shares still down about 40% for a company like Ballard Power. Ballard Power is currently working with Audi to develop automotive fuel cells through 2022. But the company already provides fuel cells for trains, mining trucks, marine applications and backup power for critical infrastructure. However, it’s already attempting to create fuel cell systems for drones. It’s this kind of innovation that investors can look forward to for years.

The fuel cell industry is still incredibly new, but a company like Ballard has made announcements investors should be listening to. Ballard recently announced that Canadian Pacific Railway Ltd. would be buying its fuel cell modules for its hydrogen locomotive program. This would be the first hydrogen-powered line-haul freight locomotive on the continent! And it won’t cost much, as CP Rail is merely retrofitting its diesel-powered trains with the fuel cells from Ballard. The company also received an order to double its fuel cell modules provided to several U.K. cities!

 Growth and value

Fuel cell companies provide the necessity to grow in a green future. While the companies may be new, they are valuable in that they provide a necessity to renewable energy companies. Transportation in particular will need these companies in the years to come.

That means now investors have the opportunity to see massive returns in a short amount of time from the pullback. However, it may not last long and shares could continue to climb to where they were back in January. I’ll be clear, however, that again because Ballard is new, profitability is still a ways away. But you at least have the advantage of a pullback to buy now and hold on to your stake as a long-term investment.

As an idea, let’s say you invested just $6,000 into Ballard Stock today and see it return to January pricing. That would turn your initial investment into $10,400!

Bottom line

As Ballard stock continues to prove itself within the fuel cell industry, investors have a real opportunity today. The share pullback provides you with a chance for quick growth. However, you can then hold onto this stock for decades knowing the company is likely to only continue to grow both organically and even through acquisition.

Shares climbed almost 2,700% before the pullback in the last five years. Yet with the pullback are now up 1,400% in that time, which is still a compound annual growth rate of 73%! This could merely be the beginning for this valuable stock, and one investors should add to their watch list.

Fool contributor Amy Legate-Wolfe owns shares of Canadian Pacific Railway Limited.

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