3 Growth Stocks to Buy Like There’s No Tomorrow

The smartest investors tend to take a thematic approach to investing. They concentrate on megatrends that have the power to drive outsized growth over the long term.

Two of the biggest megatrends that are already underway are decarbonization and digitalization. Companies will spend trillions of dollars to reduce their carbon footprints and digitize their businesses in the coming years. Three leaders in these fields are Brookfield Renewable (BEPC 0.86%) (BEP 0.71%)Equinix (EQIX 0.46%), and Palo Alto Networks (PANW 1.21%). That makes them great growth stocks to buy with high conviction right now.

Positioned for powerful returns

The management team at Brookfield Renewable estimates that the global economy will need to invest $150 trillion over the next 30 years to fully decarbonize. It’s in an excellent position to capitalize on this megatrend. The company has built a leading global clean energy business focused on all aspects of decarbonization.

Brookfield’s base business is renewable energy generation. It has a 24-gigawatt (GW) portfolio of operating assets across hydroelectric, wind, solar, and storage. It sells the bulk of the power it generates under long-term agreements with utilities and large corporate buyers. Those agreements provide it with lots of stable cash flow. Brookfield also has a growing clean energy and transition business with investments in nuclear services and carbon capture and storage. 

The company has a massive backlog of development projects that will power its growth, including 102 GW of new renewable energy capacity. In addition, the company expects inflation-linked rate increases on existing contracts and higher power prices as legacy agreements expire to drive growth. Combined with the impact of acquisitions, Brookfield’s funds from operations (FFO) could increase by as much as 20% per share annually. It has already secured and funded 8% annual growth through at least 2027. Factor in the company’s attractive and growing dividend (which at the current…

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