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

I would watch these three beaten-down stocks till 2032.

| More on:
edit U-turn

Image source: Getty Images

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.

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 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.

More on Energy Stocks

Utility, wind power
Energy Stocks

3 Clean Energy Stocks With Passive Income for 2023

These three clean energy stocks may be down now, but not for long, offering substantial returns and passive income for…

Read more »

Oil pumps against sunset
Energy Stocks

Even at $60 Oil, These Energy Stocks Are Still Ridiculously Cheap

Oil stocks like Baytex Energy (TSX:BTE) are undervalued, even if crude drops.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, December 8

TSX stocks may remain volatile ahead of the U.S. inflation data and the Fed’s interest rate decision, which are due…

Read more »

The sun sets behind a high voltage telecom tower.
Energy Stocks

Is Algonquin a Good Long-Term Buy Right Now?

After a steep 44% drop, Algonquin boasts high-yielding dividends, and it might be a good asset to buy and hold…

Read more »

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

Whatever You Do, Don’t Sell Suncor Stock

Canada's oil sands king believes it can generate the highest long-term value for shareholders by keeping its retail business.

Read more »

Portrait of woman having fun in the street.
Energy Stocks

I’m Buzzing on These 3 Energy Stocks for 2023

Three energy stocks remain attractive buys for 2023 due to stronger balance sheets from continuous debt reductions and growing free…

Read more »

energy industry
Energy Stocks

CNQ Stock Fell by 1.7% in November: Is it a Buy Now?

CNQ stock is down in recent days after a relatively stable November. Is the dip a good opportunity to buy?

Read more »

Businessman looking at a red arrow crashing through the floor
Energy Stocks

Selling Losers Before 2023? Buy these TSX Winners With the Proceeds

Here are two TSX stocks that could outperform next year.

Read more »