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Northland Power Inc. (NPI)
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Brookfield Infrastructure Partners L.P. (BIP.UN)
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Boralex Inc. Class A Shares (BLX)
Q: Dear 5i team.
Of the badly beaten up Utilitiy stocks, please rank the top three from the worst five that have the best chance of significant bounce once interest rates peak or decline.
A couple reasons why for each would help as well.
Many thanks for your help.
Of the badly beaten up Utilitiy stocks, please rank the top three from the worst five that have the best chance of significant bounce once interest rates peak or decline.
A couple reasons why for each would help as well.
Many thanks for your help.
5i Research Answer:
This year's worst in the sector are ANRG (-93%), GRN (-68%) and some other small caps. Some of these may not make it, so we set a market cap limit of $300M. Of these, the worst are INE (-41%), NPI (-40%), BLX (-27%), BIP.UN (-20%) and CPX (-14%). We would consider the best three here to be BIP.UN, for its diversified business, management, recent earnings and growth outlook. BLX, for higher expected growth next year and growing cash flow. And NPI, for 30% growth expected next year. Also, as a fairly large utility, we think in a sector rally (lower rates) it could see some 'bounce' buying as investors get less concerned about the sector overall. Generally larger companies move 'first' as capital flows back into a sector.