Let’s take a look at 3 stocks with considerable potential for value appreciation.
Brookfield Renewable Partners
Brookfield Renewable Partners (NYSE: BEP) has over 75% of total energy generation from 81 river systems in Canada, the U.S, Brazil, and Colombia. The company has a massive portfolio, which generated funds from operations of $125 million for Q3 2020.
The Canada-based renewable power assets operator has generated more than 90% since the start of 2020. The company predicts a $100 trillion investment opportunity in renewables over the next three decades, and the cash flow per share is expected to grow between 11% and 16% by 2025.
Considering the valuations the company is heading for in 2021, the share price is currently at a discounted price, trading at $42.80 per share.
Duke Energy
Duke Energy (NYSE: DUK), operates a portfolio of 25 hydroelectric power assets in the Carolinas and Tennessee. It generates and distributes electricity to 7.7 million customers in six states.
The North Carolina-based hydroelectric operator posted its Q4 results for 2020, which showed a 7.15% growth in revenue at $5.78 billion. The ROI is around 4.1%, which is more than what an investor would get from an investment in an S&P 500 index fund.
The dividend paid by the company has shown a 3% growth year on year, which can be a good option for conservative dividend investors. The company’s PE ratio is 34, which is in line with the industry.
The company is expecting earnings growth of 4% to 6% a year till 2024 based on its capital spending plans.
Bloom Energy
Bloom Energy (NYSE: BE), offers fuel cells primarily in the U.S, Japan, India, and South Korea. The company’s focus as of now is to create zero-carbon energy and expand the use of hydrogen energy as a fuel. Bloom Energy’s key value proposition is lower-cost fuel cells with greater efficiency.
Hydrogen is getting a lot of policy support in Europe and East Asia, mainly Japan and Korea. Bloom Energy, being one of the largest hydro-power cell producers, has a huge scope to scale across the globe.
The California-based fuel cells producer had total revenue of $249.4 million in the fourth quarter of 2020 with an increase of 17%. The company targets a gross margin of 30% and an operating margin of 15% by 2025.
____