Forget Tech Stocks: 1 Stock Bound to Rise in 2024

Tech stocks had a rough week in the markets and may take a while to recover. This other stock is a steal!

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After an incredible start to 2024, the market and tech stocks, in particular, were punished a fair bit to end of the month. Tech giants continued to talk about cuts, with costs continuing to climb. They now trade on what’s being described as a knife’s edge. This is why it might be a better time to continue this other cheap stock instead.

What happened?

Despite relatively strong earnings reports, shares of the “Magnificent Seven” tech stocks fell pretty much across the board. Even before earnings were out, some of these tech stocks saw shares drop ahead of time.

Much of this came down to costs. While performance remained strong, costs for these companies have surged in the last while. Everything from data centres to research has been putting pressure on company performance. And investors are noticing.

Now, these tech stocks were trading near 52-week highs, and investors seemed to believe that it was time to take out some returns. And they could be right — especially since the Magnificent Seven currently controls roughly a whopping 30% of the S&P 500 as of writing.

Will they turn around?

Of course they will. These Magnificent Seven are magnificent for a reason. So, long-term investors may want to take the opportunity to buy the dip if they want in on long-term growth. That being said, it could be a while.

For now, investors want more from artificial intelligence (AI) to prove that growth is coming. The buzz phrase has hit tech stocks all over the world. But it’s still unclear how this could play out in the long term. So, investors may either want to plan on holding for years to come or hold off until the market stabilizes a fair bit.

Meanwhile, there is another opportunity that investors could get into instead. And that’s with Brookfield Renewable Partners (TSX:BEP.UN).

Brookfield booming

On the surface, BEP stock looks similar to tech stocks. That is, the company has also seen rising costs over the last few years. And that’s sent shares down further. The difference? Shares haven’t come back up, and that creates a huge opportunity.

That opportunity is supported by a few things. BEP stock continues to have cash on hand for acquisitions into the renewable energy sector, even more than they already have. Frankly, that’s something many other renewable energy companies don’t have access to right now.

With earnings now around the corner, investors could grab BEP stock and potentially see a rebound over the next year. But I would continue to hold it even beyond that. The renewable energy sector is going to boom in the next decade and beyond. And frankly, BEP stock could be at the head of that surge.

Right now, investors can grab BEP stock trading at 1.51 times sales, with a dividend yield of 5.05%. That’s far higher than its five-year average of 3.76%. Therefore, there are many reasons to pick up this hot stock on the TSX today. Meanwhile, I would hold off on the popular tech stocks for 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.

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.

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