The S&P/TSX Composite Index continues to be a volatile place for Motley Fool investors. Many don’t know where to turn in this questionable time. Fear can take hold of our investment decisions, when really it should be greed. Especially when looking for high-growth TSX stocks.
As Motley Fool investors know, the best investment strategy is a long-term one. If you’re going to buy up a TSX stock, the best thing you can do is plan on holding it for decades. That’s why now is a fantastic time to get on this industry that’s promising to thrive in the next decade and beyond.
Renew your investment
A lot of Canadians, and investors in general, dumped their renewable TSX stocks back in January 2021. After reaching all-time highs in many cases, these stocks have fallen to serious lows. And some wonder when they’ll climb back up, if ever.
But that is an unrealistic and ignorant view. Especially if you read analysts’ reports. Clean energy is the future, no matter how you look at it. That presents an incredible investment opportunity for long-term investors wanting in on the action for a high-growth TSX stock. While you may not see multi-bagger performance this year, a decade from now you’ll be glad you bought in.
But what to buy?
Within this industry there are still a lot of options, but the one that continues to be on a Top Picks list favourite for analysts is Northland Power (TSX:NPI). The TSX stock currently produces, develops, builds, owns, and operates clean energy in North America, Europe, Latin America, and Asia. And it doesn’t focus on one area, but instead invests in everything from wind to solar energy.
And analysts love this TSX stock. The company has a significant pipeline of projects coming through, with about 75% of new projects to be built by 2030. The entire pipeline would produce 230% growth over today’s capacity. Further, during an investor day event Northland Power identified how all this would be funded, including an asset sell-down strategy unique to Northland Power to create more returns.
The stock has been identified as an outperformer in its industry, with a consensus target price of $46. That’s a potential upside of 28% as of writing. And even more once that 230% of growth comes online for the growth stock.
Why every Canadian?
Now why should every Canadian own this TSX stock? Because it offers substantial opportunity at an incredibly valuable price. Shares currently trade at 3.67 times earnings. It offers a 3.32% dividend yield for investors as well. The company has a diversified business both in terms of clean energy projects, and location. And most importantly, it has a financial strategy in place to create sustainable growth.
Northland Power is set to release earnings on February 24. Its last earnings report fell short of estimates, with sales and EBITDA decreasing year over year. But that’s why it’s a great time to buy the stock on the dip, and hold onto long term. You’ll definitely be glad you did if not in the next year, certainly in the next decade.
