3 Dirt-Cheap Green Energy Stocks to Snag Today

Green energy stocks like Innergex Renewable Energy Inc. (TSX:INE) are worth snatching up on the dip in December.

| More on:

The S&P/TSX Composite Index was down 85 points in late-morning trading on December 14. Canadian and global markets have struggled in the first half of December. Anxiety has ramped up due to the emergent Omicron COVID-19 variant, and there is uncertainty over the rate-tightening cycle that Canadian and United States central banks are telegraphing in 2022. Today, I want to look at three green energy stocks that look discounted at the time of this writing. Let’s jump in.

This dependable green energy stock has plummeted throughout 2021

Brookfield Renewable Energy (TSX:BEP.UN)(NYSE:BEP) is the first green energy stock I’d look to snatch up in the middle of December. The company owns a portfolio of renewable power-generating facilities in North America and around the world. Its shares have plunged 23% in 2021 at the time of this writing.

The company unveiled its third-quarter 2021 earnings on November 5. Funds from operations hit a record $210 million in the third quarter of 2021 — up from $157 million in the previous year. On a per-share basis, FFO rose to $0.33 over $0.25 in Q3 2020. Brookfield closed out the third quarter with very strong liquidity of $3.3 billion.

Shares of this green energy stock last had an RSI of 30. That puts Brookfield right on the cusp of technically oversold territory. Moreover, it offers a quarterly dividend of $0.304 per share. This represents a 3.6% yield.

Here’s a cheap stock to snatch up on the dip

Innergex Renewable (TSX:INE) is a Quebec-based company that operates as an independent renewable power producer in North America, Chile, and France. Shares of this green energy stock have plunged 36% in the year-to-date period at the time of this writing. Innergex unveiled its third-quarter 2021 results in early November.

In Q3 2021, the company delivered revenue growth of 13% to $184 million. Meanwhile, it posted a net loss of $23.5 million — down from net earnings of $7.5 million in the third quarter of 2020. Moreover, adjusted EBITDA climbed 3% year over year to $155 million. For the full year, cash flow from operations jumped 24% to $284 million.

This green energy stock last had an RSI of 27, putting Innergex in technically oversold territory. It offers a quarterly dividend of $0.18 per share. That represents a 4% yield.

One more green energy stock that looks discounted today

Boralex (TSX:BLX) is the third green energy stock I’d look to snatch up today. The Montreal-based company is engaged in the development, construction, and operation of renewable energy power facilities in Canada and around the world. Shares of Boralex have plunged 31% in 2021.

Operating income shot up 112% year over year to $7 million in the third quarter of 2021. Meanwhile, EBITDA rose 31% to $81 million. It achieved strong production growth that exceeded expectations at its hydroelectric projects. This green energy stock last had an RSI of 24. That puts Boralex well into technically oversold territory.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends BORALEX INC.

More on Investing

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

ways to boost income
Investing

Are Telus and BCE Stocks a Smart Buy for Canadian Investors?

Telus (TSX:T) and BCE (TSX:BCE) have massive dividend yields, but their shares have been quite sluggish!

Read more »

investment research
Tech Stocks

Is OpenText Stock a Buy, Sell, or Hold for 2025?

Is OpenText stock poised for a 2025 comeback? AI ambitions, a 3.8% yield, and cash flow power make it a…

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

rising arrow with flames
Investing

2 Riskier Stocks With High Potential for Canadian Investors in November

Risky stocks such as Well Health Technologies have the potential to provide life-changing long-term returns.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »