Earth Day 2022: 5 lesser-known Canadian renewable energy stocks to eye

Highlights

• TransAlta Renewables’ net hydroelectric generation capacity is more than 100 megawatts across various river systems
• Cielo Waste Solutions uses construction and municipal waste to create renewable fuels
• Innergex Renewable Energy is a renewable energy producer that acquires and runs solar, hydroelectric and wind power facilities and it operates in Canada, France, the US and Chile

Climate change and global warming might be the single biggest issue facing humankind. Many feel the sense of urgency to combat the issue may not match the magnitude of the crisis.

However, the government of Canada can be seen to be prioritizing the battle against climate change and for good reason. Given its northern location, the country may be more prone to global warming effects than some other places.

This Earth Day, let’s look at five lesser-known Canadian stocks that make for an interesting watch.

TransAlta Renewables Inc (TSX:RNW)

This electric utility company deals in hydroelectric, wind power and gas. Its net hydroelectric generation capacity is more than 100 megawatts across various river systems.

With a market cap of C$4.8 billion, the company’s RNW stock closed at C$18.31 Thursday, April 21. The stock has dropped over eight per cent in the past year, its 52-week low of C$16.01 coming on January 11.

However, in the last three months it has rebounded over eight per cent and is in the green on a one month basis.

Cielo Waste Solutions Corp (TSXV:CMC)

Cielo uses construction and municipal waste to create renewable fuels. Its operations also contribute to landfill reduction.

It has a market cap of C$182 million. Its stock closed at C$0.275 Thursday having gained nearly four per cent in the day’s trade. Though its in the red compared to 12 months ago, in 2022, it has risen nearly 38 per cent, its 52-week low of C$0.19 coming in December 2021.

Also read: Shopify (TSX:SHOP) stock falls 14% in 1 day: Is it time to buy?

Boralex Inc (TSX:BLX)

This electric utility company constructs and operates renewable energy facilities. A majority of the company’s power comes from wind energy and its hydroelectric capacity is also noteworthy.

A C$4 billion company, the BLX stock closed Thursday at C$39.03. It has risen about 22 per cent in the last three months and about 13 per cent this year.

Down 8.8 per cent over the last year, the stock is in the green on a nine-month, six-month, and one month basis.

Also read: How to handle a bearish phase in the market?

ReGen III Corp (TSXV:GIII)

This company owns technologies that help used motor oil (UMO) re-refineries to produce a better quality of base oils. The TSXV-listed company has a market cap of C$204 million.

The GIII stock spiked by 8.5 per cent on Thursday and closed at C$1.79. The stock has risen about 63 per cent in the last nine months and 6.5 per cent year-to-date (YTD). Its 52-week high of C$2.07 was on February 3.

Also read: Canada Budget 2022 earmarks $12.5B more for climate: 2 TSX clean stocks

Innergex Renewable Energy Inc (TSX:INE)

This renewable energy producer acquires and runs solar, hydroelectric and wind power facilities. It operates in Canada, France, the US and Chile. Hydroelectricity accounts for a majority of its power.

The company has a market cap of C$3.7 billion and its stock closed Thursday at C$18.51. The INE stock has gained four per cent in the last three months.

The company is set to announce its Q1 2022 results May 10.

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Also read: Is investing in gold worth considering during high inflation?

Bottom line

Investing in stocks can be risky business especially considering what a year these equities have been having. However, the renewable energy sector is expected to grow and that the government of Canada is targeting zero net emissions by 2050, may be a significant factor at play.

But before investing in any stock, more so those listed on the TSXV, it is absolutely vital that an investor do a deep dive into the company’s operations, its fundamentals, stock performance and upcoming plans. Research into the wider sector is also merited.

Also read: How does current inflation compare to 1970s stagflation?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.