5 top Canadian renewable stocks of 2021
Image source: © 2021 Kalkine Media
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- Many environmental-friendly companies in Canada are providing renewable and clean energy solutions that can help the planet in the future.
- A Canadian renewable stock mentioned here soared by nearly 17 per cent in the past year.
- Renewable and clean energy sources can play a significant role in replacing fossil fuels, the main cause of carbon emission.
People across the world are becoming environmentally conscious due to the increasing climate threats. During the COP26 climate conference, world leaders shared their climate targets to save the earth from severe consequences of adverse weather conditions.
Pitching in with efforts, many environmental-friendly companies in Canada are providing renewable and clean energy solutions that can help the planet in the future.
Let us discuss some of the top Canadian renewable stocks of 2021 in detail.
Image source: © 2021 Kalkine Media
1. Global Water Resources Inc (TSX:GWR)
Global Water Resources Inc is a Phoenix, Arizona-based utility company that provides fully integrated water management solutions.
On Monday, December 13, Global Water inked a letter of intent to acquire Farmers Water Co. in Pima County to expand its water management operations strategically.
The utility company posted revenue of US$ 11.4 million in Q3 FY2021, up by six per cent from the same quarter a year ago. Its net income also grew 32.4 per cent year-over-year (YoY) to US$ 1.5 million in Q3 FY2021.
GWR stock closed at C$ 21.94 apiece on December 13, having soared nearly 17 per cent in a year.
2. Capital Power Corporation (TSX:CPC)
Capital Power Corporation, an Edmonton, Alberta-based power production company, generated a net income of C$ 38 million in Q3 FY2021.
The company is said to be working on carbon capture and storage solutions with Enbridge Inc (TSX:ENB).
CPX stock closed at C$ 38.71 apiece on December 13, having expanded by nearly 11 per cent in the past year
3. TransAlta Renewables Inc (TSX:RNW)
TransAlta Renewables Inc is a Calgary, Alberta-based firm that produces and transmits electricity.
The utility provider posted adjusted EBITDA of C$ 102 million in Q3 FY2021, up by C$ 6 million from the previous year. Its distributable cash amounted to C$ 54 million in Q3 FY2021.
RNW stock closed at C$ 18.73 apiece on December 13, up by nearly three per cent in the last year.
4. Algonquin Power & Utilities Corp (TSX:AQN)
Algonquin Power & Utilities Corp is an independent utility company that owns and operates wind, solar, thermal and hydroelectricity plants.
The Oakville, Ontario-headquartered utility company saw its revenue rise by 40 per cent YoY to US$ 528.6 million in Q3 FY2021.
AQN stock delivered a month-to-date return of almost four per cent. On December 13, its stock closed at C$ 17.93 apiece, up by roughly two per cent.
5. Fortis Inc (TSX:FTS)
Fortis Inc, a utility distributor, recorded net earnings of 295 million in Q3 FY2021 compared to C$ 292 million a year ago.
The company claims that it had achieved a 15 per cent carbon reduction in Scope 1 emissions in 2020. Following the COP26 conference, the company is working on its carbon emission reduction target of 75 per cent by 2035 against 2019 levels.
FTS stock delivered a year-to-date (YTD) return of about 13 per cent. Its stock closed at C$ 58.80 apiece on December 13.
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Renewable and clean energy sources are likely to play a significant role in replacing fossil fuels, the main cause of carbon emission. With an increasing inclination towards conserving the environment, renewable stocks could gain traction in the future.