1 Canadian Stock Bay Street Bets Will Double in 2023

These could be the main reasons why Bay Street analysts expect this Canadian stock to more than double in the next 12 months.

| More on:

The Canadian stock market started 2023 on a strong note, as the main TSX index climbed by 5% in the first two weeks of January after ending 2022 with 8.7% declines. Despite ongoing macroeconomic uncertainties and the possibility of a looming recession, investors apparently are confident that the new year will prove to be better than the previous one for most stocks. This confidence could be the main reason for renewed buying in stocks across sectors in the last two weeks.

It might not be too late for you to add some fundamentally strong Canadian stocks to your portfolio at a big bargain right now, as many stocks still look undervalued after witnessing sharp value erosion last year. In this article, I’ll talk about one of the best Canadian stocks you can buy right now that Bay Street analysts expect to more than double in 2023.

Bay Street analysts expect this Canadian stock to double in 2023

If you don’t know it already, Ballard Power Systems (TSX:BLDP) is a Burnaby-headquartered company with a market cap of $2.4 billion. After delivering an outstanding return of more than 800% in 2019 and 2020 combined, this Canadian stock tanked by 78% in the next two years, as its weak sales in China and Europe continued to hurt investors’ sentiments.

Nonetheless, BLDP stock has started 2023 on a solid note, as it has already jumped by 26% in the first two weeks of the year to $8.06 per share, outperforming the broader market by a huge margin. According to Bay Street analysts’ consensus data, Ballard Power’s share prices could reach $17.03 per share in the next 12 months, reflecting an outstanding 111% upside potential from its current market price.

What could help it soar in 2023 and beyond?

Whether you’re picking a stock yourself or based on analysts’ views, you must always pay attention to the stock’s ongoing financial growth trends and future growth prospects. So, now, let me give you some key reasons Ballard Power Systems could be a great Canadian stock to consider in 2023.

Ballard Power Systems has more than four decades of experience designing, developing, and manufacturing proton exchange membrane fuel cells. Such fuel cells are mainly used in a variety of electric mobility solutions like buses, trucks, trains, and marine vessels. The company has a geographically well-diversified business model. Based on its 2021 financial figures, Ballard Power made nearly 41% of its total revenue from Europe, 37% from China, and the remaining from North America and other countries.

While Ballard Power’s revenues have declined in the last couple of quarters, analysts expect its sales to grow by around 22% in 2023 to US$108.8 million. After increasing its focus on product standardization in recent years, the company expects to achieve increased manufacturing and supply chain efficiency along with economies of scale in the coming years.

Moreover, the demand for clean energy is continuing to surge, which could boost the demand for Ballard’s fuel cells going forward and speed up its financial growth. These could be some of the key reasons why BLDP stock could help you get outstanding returns on investments if you buy it now.

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.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Stocks for Beginners

woman looks out at horizon
Stocks for Beginners

Here’s How Much Canadians at 35 Need to Retire

If you want to create enough cash on hand to retire, then consider an ETF in one of the safest…

Read more »

Concept of multiple streams of income
Dividend Stocks

Got $10,000? Buy This Dividend Stock for $4,992.40 in Total Passive Income

Want almost $5,000 in annual passive income? Then you need a company bound for even more growth, with a dividend…

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Dividend Stocks

Watch Out! This is the Maximum Canadians Can Contribute to Their RRSP

We often discuss the maximum TFSA amount, but did you know there's a max for the RRSP as well? Here's…

Read more »

a person looks out a window into a cityscape
Dividend Stocks

1 Marvellous Canadian Dividend Stock Down 11% to Buy and Hold Immediately

Buying up this dividend stock while it's down isn't just a smart move, it could make you even more passive…

Read more »

Blocks conceptualizing the Registered Retirement Savings Plan
Dividend Stocks

CPP at 70: Is it Enough if Invested in an RRSP?

Even if you wait to take out CPP at 70, it's simply not going to cut it during retirement. Which…

Read more »

worry concern
Stocks for Beginners

3 Top Red Flags the CRA Watches for Every Single TFSA Holder

The TFSA is perhaps the best tool for creating extra income. However, don't fall for these CRA traps when investing!

Read more »

Data center woman holding laptop
Dividend Stocks

Buy 5,144 Shares of This Top Dividend Stock for $300/Month in Passive Income

Pick up the right dividend stock, and investors can look forward to high passive income each and every month.

Read more »

protect, safe, trust
Stocks for Beginners

2 Safe Canadian Stocks for Cautious Investors

Without taking unnecessary risks, cautious investors in Canada can still build a resilient portfolio by focusing on safe stocks like…

Read more »