BIPC - 2 Potentially Explosive Stocks to Buy in February
2024-02-25 07:20:00 ET
Decarbonization and digitalization represent multi-trillion-dollar investment opportunities over the coming decades. The U.S. needs to invest an estimated $4 trillion to decarbonize its economy by 2050, while the world needs to spend $1 trillion on data infrastructure in the coming decade to support digitalization. Those megatrends could power explosive growth for companies focused on them.
NextEra Energy (NYSE: NEE) and Brookfield Infrastructure (NYSE: BIPC) (NYSE: BIP) are leaders in those fields. Despite that, their shares currently trade more than 30% below their recent peaks because of concerns that rising interest rates could stunt their growth. However, with that headwind expected to fade this year as the Federal Reserve lowers rates, it could lift the weight holding down their stocks. That near-term catalyst, combined with their focus on long-term megatrends, positions investors to potentially earn explosive total returns in the coming years. That makes them stand out as some of the top stocks to buy this month.
NextEra Energy was an early adopter of renewable energy and has built a leading wind and solar energy platform. The company has leveraged its expertise to invest in adjacent sectors to add more power to its growth engine. It's an emerging leader in operating battery storage to complement its renewable energy assets. NextEra is also developing electricity transmission lines to transmit renewable energy to the grid. In addition, it's starting to invest in green hydrogen , an emissions-free fuel produced with renewable energy.
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2 Potentially Explosive Stocks to Buy in February