Market Sell-Off: 3 Smart Stocks to Buy Before They Rebound

The stock market has corrected in recent weeks, declining more than 10% from its recent high. Some stocks are down even more. While the sell-off has been challenging, it has also provided long-term investors with some intriguing opportunities. 

We asked three Fool.com contributors which market sell-off stocks they believe are smart buys right now. Here’s why they think Brookfield Renewable Partners (NYSE:BEP), Clearway Energy (NYSE:CWEN)(NYSE:CWEN.A), and Ford Motor Company (NYSE:F) could rebound once the stock market correction ends.

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More clean growth ahead

Reuben Gregg Brewer (Brookfield Renewable Partners): So far in early 2022, Brookfield Renewable Partners is off by less than 10%. However, if you go back to early 2021 the shares are over 30% below their peak. This sell-off could be a bit overdone.

BEP data by YCharts

Brookfield Renewable Partners and its younger sister Brookfield Renewable Corp. (NYSE:BEPC), which both represent ownership in the same entity but have different tax considerations, offer a front-row seat to the ongoing growth in the clean energy space. The business is diversified geographically, with assets located around the world. It is diversified by energy source, with a large hydroelectric portfolio creating a foundation on which management is building out its solar and wind portfolio. And it is focused on dividend growth, targeting 5% to 9% annual disbursement increases. It has, as it is, lived up to that distribution goal, having increased the payout annually since 2010 (adjusted for the spinoff of Brookfield Renewable Corp.) at a compound annual clip of 6%.

But it’s the future here that’s most exciting, given the world’s ongoing push toward green power. Notably, Brookfield Renewable Partners just agreed to buy Urban Grid, tripling Brookfield’s U.S. renewable development pipeline. Although investors appear to have soured on this clean energy play, it is still capitalizing on the big-picture shift toward alternative energy sources. And you can collect a fairly generous 3.6% distribution yield while you wait for it take to advantage of this massive long-term growth opportunity.

A lower price = a higher dividend yield

Matt DiLallo (Clearway Energy): Shares of Clearway Energy are down about 15% from their most recent high. That sell-off comes even though the clean energy producer’s long-term growth prospects have strengthened in recent months. Because of that, investors can grab shares of this clean energy company at a more attractive valuation. They can also lock in a higher dividend yield — currently around 4.1% — in the process.

Last fall, Clearway Energy agreed to sell its thermal business to private equity giant KKR (NYSE: KKR) for $1.9 billion. It will receive $1.3 billion in net cash proceeds to fund future growth. Clearway already has deals lined up for about half that cash, which will nearly offset all the lost income. Add in its…