Clean Energy Is the Future: Boralex Stock Could Be 1 of the Best Long-Term Performers

For investors in Boralex (TSX:BLX), there’s a lot to like about the company’s growth plans over the long term.

| More on:
green energy

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

For investors looking forward to the next decade or two, clean energy is a key focal point. Indeed, there’s a lot of excitement around clean energy stocks right now — and for good reason.

The amount of electricity the world will need in the coming decades is impressive. Feeding the rise of electrification will be at the hands of renewable power players. Companies like Boralex (TSX:BLX) stand up to the challenge and provide excellent growth potential for investors seeking exposure to this catalyst.

Let’s dive into why clean energy players like Boralex remain great picks right now.

Excellent fundamentals support long-term growth thesis

For investors in Boralex, or any stock for that matter, fundamentals are important. Indeed, investors ought to consider how a company has performed and how it is likely to perform when assessing whether it’s worth an investment.

For Boralex, the numbers look quite good. The company has reported relatively strong numbers of late. And its forward projections are really what get clean energy investors excited about this stock.

Indeed, Boralex’s future performance rests on the company’s ability to meet the supply of the market. And in this regard, the company’s making big steps forward. Boralex recently came out with a new five-year plan. From now until 2025, the company will invest US$6 billion to add 4,400 MW of capacity to its current business model. That’s roughly a doubling of capacity over a five-year period.

Not bad.

Indeed, the company’s expected AFFO growth rate of 14-16% per year for the next five years is impressive. That’s right in the ballpark of doubling over this time frame. For long-term investors seeking growth in the renewables space, Boralex seems to have a plan for how to accomplish this.

Bottom line on Boralex stock

When it comes to renewable energy players in Canada, Boralex is one of the most popular companies. As ESG investing becomes more important, and more capital flows into clean energy stocks, Boralex should be a key beneficiary of this trend.

Indeed, I think this company’s growth plan is solid, and its fundamentals are great. There are few better options in this sector to consider today.

Long-term investors may need to be patient with Boralex stock to see the compounding effect of this company. That said, I think this stock’s recent performance in years past is an indication of the sentiment shift underway today. Until something changes, and we stop requiring additional renewable energy, Boralex should continue to outperform.

This is a stock with a long runway of growth potential.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool recommends BORALEX INC.

More on Energy Stocks

Business man on stock market financial trade indicator background.
Energy Stocks

Market Volatility: 2 Value Stocks to Buy Right Now

The market volatility does not look like it will let up any time soon, but these two stocks are too…

Read more »

Economic Turbulence
Energy Stocks

Why Suncor Energy (TSX:SU) Stock Lost 10% Last Week, Despite Record Profits

SU stock has gained 20%, while TSX energy stocks are sitting on decent gains of 33% for the year.

Read more »

Oil pipes in an oil field
Energy Stocks

Soaring Cash Flows: 2 TSX Oil Stocks Are Paying “Special” Dividends

Two TSX oil stocks have declared payment of special dividends to shareholders in 2022 due to soaring cash flows and…

Read more »

STACKED COINS DEPICTING MONEY GROWTH
Energy Stocks

Canadian Value Investors: 2 Top U.S. Stocks to Buy in August

Skechers and Exxon Mobil are two undervalued gems that Canadian investors can buy in 2022. Both stocks may outpace the…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

Passive Income: 2 Dividend-Paying Energy Stocks I’d Buy Now and Hold Forever

These two energy stocks can provide an investment portfolio with both passive income and market-beating returns.

Read more »

Oil pumps against sunset
Energy Stocks

Oil Falls Below US$90 for 1st Time Since February: 2 Energy Infrastructure Stocks to Buy Today

With oil prices decreasing, energy infrastructure stocks might remain solid bets, even if others see a downturn.

Read more »

oil and natural gas
Energy Stocks

Small OPEC+ Oil-Output Hike: Buy More Energy Stocks?

Energy stocks could soar higher, because oil markets will remain tight due to the small production increase by OPEC+.

Read more »

canadian energy oil
Energy Stocks

3 High-Yield Energy TSX Stocks That Offer Monthly Passive Income

Dividend-paying stocks are generally slow-growing, boring ones. Well, not these ones.

Read more »