3 Clean Energy Stocks That Offer Incredible Long-Term Value
Traditional energy stocks are looking less and less appealing these days — especially in today’s volatile market. The TSX today continues to slump, down 6% in the last month alone. Meanwhile, the TSX Energy Capped Index remains down 4% in the last week alone. And it’s why some may want to look to clean energy stocks.
Granted, energy stocks have been improving over the last few months. But it remains a volatile situation for oil and gas companies. That became especially apparent from the war in Ukraine causing sanctions against Russia. Furthermore, the lockdowns in China have also hampered growth.
With that in mind, this poor market does leave opportunity among clean energy stocks for those willing to wait. But don’t worry; you won’t have to wait long.
Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a great place to start for Motley Fool investors among clean energy stocks — especially those that aren’t sure even how to start investing in this area. That’s because Brookfield pretty much does it all.
The company has a diverse range of clean energy assets around the world. That gives you a diversity of clean energy options but also diversity of countries — countries that are expanding their clean energy offerings. The war in Ukraine is causing countries to focus on creating their own power, rather than depending on others.
And yet Brookfield remains a solid long-term value play. It trades at a valuable 1.95 times book value. Further, even though shares are down 4% in the last year, those shares are still up 98% in the last five years. And finally, it’s expected that this stock will experience astronomical growth in the near future, with a forward price-to-earnings ratio at an insane 1,670!
While you wait, investors can also look forward to a dividend yield of 3.39% for clean energy stocks like this one.
Another one of the clean energy stocks I’d consider has to be Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP). Ballard provides electronic power to everything except road vehicles. So, marine equipment, trains, subway cars, and really anything else you can think of, Ballard operates there.
This provides significant opportunities for Motley Fool investors wanting in on clean energy stocks. With such a diverse profile, and a portfolio filled with long-term contracts, it provides incredible value at today’s prices. Right now, it trades at 1.87 times book value, with a target price more than double its share price today from analysts.
Finally, with earnings due out on May 8, it could be a great time to buy Ballard stock before a nice, little boost. But for now, you can pick up the stock at valuable prices. Shares are down 33% year to date and 178% in the last five years.
So, you have diverse power, electric power, and now you need some nuclear power if you want in on clean energy stocks. Granted, Cameco (TSX:CCO)(NYSE:CCJ) hasn’t been the most stable of stocks in the last few years. Uranium stocks went up and down from retail traders, but long-term investors should know Cameco stock has significant opportunities to be had.
Cameco continues to be one of the largest uranium providers in the world. And recently, with sanctions against Russia, it’s been expanding its operations. There are 450 nuclear power plants in the world right now, and more are being commissioned each year. China alone will add another 50, not to mention highly populated countries like India. So, this provides Motley Fool investors with incredible value over the next decade or more.
Yet even with shares trading at high levels, its forward price-to-earnings ratio looks incredible at 365 as of writing. And it remains in value territory trading at 2.73 times book value. And yes, shares are down in the last month, but year to date, they are up 17% and 156% in the last five years. So, you’ll likely see stronger growth from Cameco with less time to wait for long-term holders.
The post 3 Clean Energy Stocks That Offer Incredible Long-Term Value appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool has no position in any of the stocks mentioned.
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