Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Buying stocks when prices are lower can be more profitable for investors, as stocks with solid fundamentals and favourable industry outlooks are often able to rebound quickly when investor sentiment improves, including energy stocks. Moreover, Canadian energy stocks are a very good source of passive income. If you’re considering adding an energy stock or two to your portfolio right now, here are two stocks to consider.
Algonquin Power & Utilities (TSX:AQN) is not a typical renewable energy company and also operates a variety of utility businesses. Headquartered in Oakville, the company has a current market capitalisation of C$5.74 billion and provides utility services such as natural gas, electricity and water to more than 1.2 million customers in North America, as well as owning a number of renewable energy assets with a net generating capacity of 1.4 gigawatts (GW).
Algonquin’s current share price is C$8.29 per share, down a whopping 63.12 per cent from its February 2021 high. The share price decline is due to a combination of renewable energy stocks overall underperforming and some of the company’s financial decisions disappointing investors. However, Algonquin has improved its financial position by cutting its dividend by 40%, as well as selling assets and taking other cost-cutting measures to manage its debt more effectively. For investors who are bullish on green energy, the stock currently trades at an attractive valuation and could be a good option.
Innergex Renewable Energy (TSX:INE) is a C$2.12 billion renewable energy company headquartered in Longueuil, France, which develops, owns and operates run-of-river hydroelectric facilities, solar farms and wind farms in France, North and South America.
Since its inception as a hydroelectric company in 1990, Innergex has grown and diversified into other renewable energy sectors. The company has an installed generating capacity of 4.2 gigawatts across all of its assets. While the debt structure has partially impacted profitability, however, revenues continue to grow quarter over quarter.
Shares of Innergex are currently trading at C$10.44 per share, having gained 15.23 per cent year-to-date, but are still nearly 70 per cent below their January 2021 all-time high. With recent earnings reports showing signs of steady earnings growth, the stock is likely to continue to move higher in the future.
