Image source: Getty Images
the TSX reached market correction territory this week, after falling 10.8% from 2022 highs on March 29. On Friday, stocks started to climb again, led by the tech sector. But don’t fall into the same trap again. Motley Fool investors should always look to value stocks.
Value stocks are those that trade below fair value and have a long history of strong growth. The energy sector has always been a stable place to look, but I don’t think that’s the case these days when it comes to oil and gas.
The oil and gas sector remains volatile as many countries shift to clean energy. That’s why these three value stocks from the energy sector are stronger choices for long-term holders looking for a quick boost.
Canadian public services
Canadian public services (TSX: CU) is one of the best options among value stocks for those looking for growth through the transition from oil and gas. The company provides energy both by natural gas, but also by hydroelectricity. This provides multiple revenue streams that can be taken away once the world becomes dependent on clean energy.
Still, the company remains in value territory, trading at 2.02 times book value. During this time, the shares did not fall, unlike other energy stocks. Instead, value stocks like Canadian Utilities have gone up, down and up. The shares are up 6% since the start of the year. Plus, you get a nice dividend yield of 4.53% from this stable stock.
If you want to get into one of the fastest growing energy spaces, then you want to look at uranium stocks. But that can be tough right now, as the industry is full of volatility. That’s why I would recommend among value stocks to choose Horizons Global Uranium Index ETF (TSX:HURA). This exchange-traded fund (ETF) focuses solely on uranium. So you have access to growth from a variety of sources rather than just one title.
The stock is still in correction, down around 10.5% since the start of the year and 29% last month. But today, that seems to be changing, so you can jump into value stocks to maybe see a quick recovery towards those highs. And there’s a nice little dividend of 0.47% in there too.
So now we have value stocks that offer stability and slow growth, or more volatility and perhaps higher rewards. But what if you want somewhere in the middle? It would be Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP). Brookfield has its hands in just about everything, just about everywhere when it comes to clean energy assets. And that’s huge right now, given the massive movement in Europe.
The company continues to post strong earnings, while remaining in value territory, trading at 1.87 times book value. And its future price/earnings ratio is crazy at 1,670! This shows that analysts believe massive growth is in the company’s immediate future.
Still, the stocks are down 2% among value stocks and 13% since mid-April. But stocks slowly rallied on Friday after news broke of the market correction. So investors can pick it up for quick returns and add a solid 3.7% dividend yield to their portfolio.