3 Renewable Energy Stocks That Are Too Cheap to Ignore

Renewable energy stocks are going to have a crazy decade. Right now, they trade at cheap prices that are far too low to ignore a moment longer.

| More on:
A solar cell panel generates power in a country mountain landscape.

Source: Getty Images

Here at the Motley Fool, we love cheap stocks. Right now, the renewable energy sector offers up some majorly cheap stocks that investors should seriously consider right now. Why? Because renewable energy offers a major growth opportunity for those willing to buy and hold for years.

In fact, that’s another thing we love here at the Motley Fool: a buy-and-hold strategy is the easiest and most effective way to make returns. Today, I’m going to go over three renewable energy stocks that remain far too cheap to ignore for a second longer.

Brookfield Renewable

Brookfield Renewable Partners (TSX:BEP.UN) could be the biggest winner of the renewable energy transition. Among renewable energy stocks, it holds assets around the world in practically every sector. This even includes nuclear power, with the company making partnerships in recent months to produce nuclear power.

A major boost also came from countries wanting to get out of the control of foreign oil and create their own power at home. And we’re still really at the beginning stages of development in this industry. Yet Brookfield stock has access to growth in all areas.

With shares down about 13% year to date and a 4.46% dividend yield to consider, Brookfield stock is certainly one of the best renewable energy stocks to consider for years to come.

NPI

Another of the top renewable energy stocks to consider should certainly be Northland Power (TSX:NPI). While Brookfield has a wide range of assets, Northland focuses on one thing: offshore wind farms. And this shouldn’t be seen as a disadvantage.

With the entire world needing land more than ever, what with growing populations and the need for food, offshore wind farms are a saviour. This provides power without taking up the precious land we need. And what’s more, offshore wind farms provide far more energy than wind farms on land.

Northland power stock is also one of the few renewable energy stocks offering a monthly dividend. That dividend yield is at 3.19% as of writing, and shares are up 2% year to date, though down about 17% from 52-week highs. And trading at 13.56 times earnings, it’s certainly well within value territory.

Ballard Power

Finally, whereas many investors to renewable energy stocks might look at power or electric vehicles, Ballard Power Systems (TSX:BLDP) is an excellent choice for everything else. Its hydrogen power fuels marine vehicles, trains, subway systems, and even military equipment. So, this gives you exposure to the growth of every other vehicle on the face of the earth besides personal vehicles.

The company continues to expand its businesses, creating partnerships around the world, even here at home. There was certainly some worry because of the semiconductor shortage. However, once that’s over with, Ballard stock will likely be seen as one of those stocks you’ll wish you’d bought way back when.

Shares are down 49% year to date but up 16% in the last month alone after strong earnings came through. So, now is certainly the time to consider this among your cheap renewable energy stocks.

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. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Energy Stocks

A bull and bear face off.
Energy Stocks

2 Top TSX Energy Stocks to Buy as Crude Oil Is Set to Soar Higher

TSX energy stocks might keep topping charts in 2023 as well.

Read more »

Oil pumps against sunset
Energy Stocks

Is the Oil Boom Over?

The energy boom is over but dividend stocks like ARC Resources (TSX:ARX) are still attractive.

Read more »

Road signs rerouting traffic
Energy Stocks

2 High-Yield Energy Stocks I’d Buy and 1 I’d Avoid

I would buy energy stocks like Enbridge Inc (TSX:ENB) this year.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, January 27

The TSX Composite is on track to close the fourth consecutive week on a positive note.

Read more »

Solar panels and windmills
Energy Stocks

Algonquin Stock Has Broken Investors’ Hearts, but I Think It Will Turn a Corner

AQN stock faces more uncertainty in 2023, but could be a compelling value pickup for income investors.

Read more »

energy industry
Energy Stocks

2 Top Energy Stocks to Buy Right Now

These energy companies remain immune to the economic and commodity down cycles.

Read more »

green power renewable energy
Energy Stocks

The 1 Dividend Stock Every Retiree Should Buy for Passive Income

Here's why I think Fortis is one top dividend stock that isn't getting the kind of love it deserves from…

Read more »

energy industry
Energy Stocks

Missed Out on Canadian Energy Stocks? My Best Dividend Stock to Buy and Hold

Altagas stock is my best stock to buy to get in on the Canadian energy stock rally, and a dividend…

Read more »