Brookfield Renewable: Future stock with a P/E ratio below 10 and 15% price potential

Brookfield Renewable: Future stock with a P/E ratio below 10 and 15% price potential

According to a report by www.boerse-online.de, stocks from the renewable energy sector have been extremely penalized in 2023. The background is primarily the increased interest expenses for many companies and expiring subsidies. Nevertheless, it remains difficult to understand why, because of such problems, values ​​are sometimes priced similarly to expiring business models (oil, gas), even though renewable energy is supposed to be the politically desired future.

Against this background, it may be worthwhile to take a look at exciting stocks from this sector and take advantage of any entry opportunities. An interesting stock is Brookfield Renewable. The company is particularly exciting not only as one of the largest producers of green electricity in the USA, but also for investors primarily because of its valuation. Brookfield is priced on the stock market at seven times earnings and has a dividend yield of 4.6 percent, which will make many a value investor's mouth water. In addition, it should be positively noted that Brookfield is active not only in the USA, but also in Europe, Brazil and Colombia with its portfolio totaling 12,5000 megawatts. Despite these positive attributes, the stock is down four percent over the past twelve months and after the hype about renewable energy in 2021, the stock has more than halved from its highs of over $55. At least recently there has been a positive trend again for the paper, which marked the end of the downward trend that had been going on for almost two years and at the same time resulted in a clear upward breakout. Nevertheless, the share is still far from its highs and due to the good future prospects, the value remains attractive. For these reasons, among others, analysts see a further 15 percent upside potential for the stock. Considering the cheap valuation and the growing importance of renewable energy, Brookfield Renewable is an interesting investment opportunity.