Canadian Stock Down 34% to Buy in November

This clean energy stock is quite bullish for long-term investors who see a future in owning a diverse, dividend stock like this Canadian stock.

| More on:
Growth from coins

Image source: Getty Images

The clean energy sector received a bad wrap these days, despite doing so at the beginning of 2021. Then-new President of the United States Joe Biden stated he would put billions toward clean energy infrastructure. And companies like Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) took off at the news.

But since then, shares of the Canadian stock died down. In fact, they’ve almost become oversold as many believe it’s going to be a while yet before they can take advantage of this company.

However, it’s not true, which is why this month it’s a great time to consider the Canadian stock.


Let’s start with the basics. Brookfield missed analyst estimates over the last few quarters, reporting a loss in earnings thanks to the pandemic putting a strain on production. That said, the company should start to see recovery just in time for earnings.

In fact, fundamentally the company looks strong. The Canadian stock is a steal with an EV/EBITDA of 17.14 and a price-to-book ratio of 2.46. Further, it has a future price-to-earnings value of 434.78! This comes from the potential to see production skyrocket in the year to come.

Analysts believe the company will report a loss of $0.12 in earnings per share for the quarter. Should Brookfield beat expectations, this could be the boost the company needs.


Now you know the numbers, you may find that this Canadian stock is perfect for long-term Motley Fool investors for its growth potential. The company is a worldwide real estate investment trust with a diverse range of clean energy projects. It continues to expand through acquisitions and partnerships that occurred during the last quarter.

The Canadian stock signed 28 renewable generation agreements, added 4,000 megawatts to the pipeline, invested $1.9 billion across transactions, with $3.3 billion on the books.

In the last quarter, Brookfield also signed an agreement with Amazon to develop renewable energy projects. The pair will create opportunities to help Amazon achieve its own climate targets. The company has also made up several other similar partnerships, powering these companies into the future on a global scale.

The Canadian stock isn’t slowing down. So despite production waining in 2021, it looks like 2022 is when everything will be ramped up.

Foolish takeaway

So that’s why November is an excellent time to consider Brookfield for your portfolio. It remains a strong investment for long-term Motley Fool investors with the potential to reach multi-bagger status. Yet shares fell 34% peak to trough in 2021 and remain down by 20% as of writing. In the last month, however, shares are back up by 11% and climbing.

And while you wait for the recovery, Brookfield offers a solid dividend yield of 3%. That would give a $20,000 investment $604 in dividends each year. Furthermore, while it’s down this year, in the long-term, this is a strong company with plenty of growth.

In the last decade alone, shares are up 270%! That makes this Canadian stock the energy stock you’ll want on hand over the next month and decades.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe owns shares of Brookfield Renewable Partners. The Motley Fool recommends Amazon.

More on Energy Stocks