As far as renewable stocks in Canada go, Northland Power (TSX:NPI) is perhaps one of the "go-to" names for investors looking to ride the wave of renewable energy into this new decade, and beyond.
Renewable power has become a hotbed topic for investors and funds focused on Environmental, Social, and Governance (ESG) plays of late, and 2020 thus for seems to be the year where funds are starting to enforce these commitments, meaning a rush into renewables is not likely to slow down for the foreseeable future.
Northland Power is an excellent renewables option for Canadian investors, as this is one of the Marquis options in the renewables space from an earnings perspective.
Northland has well run operations underpinning its earnings, and a very long runway to expand earnings over time, which should lead to continued outperformance, from a share price perspective, relative to its peers.
I think at this point in time, Northland is probably still about 10%--20% undervalued, given its fundamentals and balance sheet, and if I had to choose a renewables play out there, I’d probably look at Northland first.
For any investor out there, young or old, I would implore you not to overlook the impact ESG investing will have on the world of finance moving forward. For this decade and next (and perhaps beyond), I view ESG investing as one of the top trends that will take markets by storm.
Right now, we are really only seeing the tip of the iceberg with respect to this investing trend, and I would encourage all long term investors to start doing their research on renewables accordingly.
Invest wisely, my friends.
