Renewable energy stocks have a solid future ahead of them. The world continues to invest in this sector as we move away from oil and gas energy production. What’s more, the invasion of Ukraine by Russia has led to sanctions on Russian oil. This has led many European countries to push for their own power sources.
And yet renewable energy stocks remain down in 2023. Granted, this is certainly due to the ongoing weakness surrounding a potential recession. Higher inflation and interest rates have led these stocks to fall further, as costs rise and there is less cash on hand for expansion.
Even so, this marks now as a great time to get into these renewable energy stocks. You can get a stellar deal and look forward to growth that will come in the next few years and decades. Here are the top ones recommended today.
If you’re looking for a buy among renewable energy stocks, then Boralex (TSX:BLX) is certainly one to consider. Analysts continue to recommend it as a buy, with the electric utility company the powerhouse behind producing large renewable energy power facilities. What’s more, it offers a diverse range of renewables, from thermal to solar fuel sources.
Furthermore, Boralex stock benefits from long-term contracts, with locations all over the world. Yet shares are down 15% in the last year, providing the potential for a great time to jump in on the stock — especially if you want to receive long-term gains.
You may have to deal with some short-term fallouts, as weak performance continues to impact the stock. But even so, Boralex stock’s fallout looks overdone to analysts. They now believe that the stock could outperform, as the share price doesn’t reflect the company’s future performance — especially as it continues with its growth plan to have 4.4 gigawatts of capacity by 2025 and 10-2 gigawatts by 2030.
Another strong performer among renewable energy stocks is Hydro One (TSX:H). Hydro One stock also saw a rise and fall during the last two years, as investors went over to utility stocks. It’s also quite young when looking at its initial public offering, thereby providing years of growth ahead for investors.
Its hydro power provides energy to most of Ontario, and it continues to expand its long-term contracts as well. Shares are still up by 9% in the last year but have come down from 52-week highs by 9.7% as of writing. This again provides investors with a solid jumping in point, according to analysts, who see this as a strong long-term hold.
Raymond James has ranked it as one of the “highest-quality companies,” with “strong five-year earnings guidance.” It remains a low-volatility investment through long-term contracts, as well as a growth investment from its line extensions. Meanwhile, it’s provided a 50/50 partnership with First Nations groups in Ontario, securing results that shouldn’t be impeded by social and environmental activist groups.
Finally, the last of the renewable energy stocks to consider these days is Innergex Renewable Energy (TSX:INE). The power producer provides energy through its diverse range of renewable assets as well, and similarly to Boralex provides it around the world.
Yet again, shares are down a whopping 30% in the last year. This could last for a bit longer as the near-term looks choppy for the sector, according to analysts. It’s not just rising interest rates and inflation, but also geopolitical issues now coming into play. Yet Innergex stock remains a top choice to become an outperformer in the next year or so. That makes now a great time to consider it a strong buy.
For now, management will likely stick to creating more liquidity through perhaps refinancing or even asset sales. This could help fund near-term growth for the company. Even still, when the dust settles it’s likely Innergex stock should surge back, eventually hitting 52-week highs in the next year or so once more.