Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.

Resource and commodity stocks in general should make up only a limited portion of your portfolio—say less than 20% for a conservative investor or as much as 30% for an aggressive investor. And as part of that segment, energy stocks could make up, say half of that total. The rest could be fertilizer stocks, mining stocks and so on.

Oil and gas stocks have been below-average performers lately, and many investors are tempted to get out of the industry altogether. However, the energy sector can play a crucial role in your portfolio as a hedge against inflation. The low inflation rates of the past couple of decades deserve some of the blame for the poor performance of the sector. However, energy stocks will likely rebound in years to come as the global economy recovers.

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

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Energy Stocks Library Archives

Its investments are set to reward you

IMPERIAL OIL LTD. $35 is still a buy for investors. The integrated oil producer (Toronto symbol IMO; Conservative Growth and Income Portfolios; Shares outstanding: 752.9 million; Market cap: $26.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.5%; TSINetwork Rating: Average; www.imperialoil.ca) likely spent between $1.8 billion and $1.9 billion… Read More

These Resource picks set you up for gains

Despite persistently low oil and gas prices, you should continue to hold Resource stocks in your portfolio (as much as 15% of the total). To cut your risk, however, investors should stick with producers—like Cenovus and Encana—that have high-quality properties and low operating costs.
CENOVUS ENERGY… Read More

Here are three sells for you to act on now

Long-time readers know that we are constantly re-evaluating our stock picks for you. Here are three companies that we now feel fall short of offering you the kind of high-growth prospects TSI Power Growth Investor aims to deliver our subscribers. We now see all three as sells.
DELPHI ENERGY… Read More

Our updates keep you on top of your stocks: Pengrowth Energy, RioCan REIT and Bank of Nova Scotia

PENGROWTH ENERGY, $0.055, is a sell for our subscribers. The troubled energy producer (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $28.0 million; TSINetwork Rating: Speculative; No dividends paid; www.pengrowth.com) has two main properties: its Lindbergh oil sands project in Alberta, and its Groundbirch natural gas property in… Read More

IMO raises your prospects

IMPERIAL OIL LTD., $32.38, is a buy for safety-conscious investors. The stock (Toronto symbol IMO; Shares o/s: 764.2 million; Market cap: $24.2 billion; TSINetwork Rating: Average; Divd. yield: 2.7%; www.imperialoil.ca) lets you tap Canada’s third-largest publicly traded oil producer, after Suncor (No. 1) and Canadian Natural Resources. ExxonMobil… Read More

Investors will like this move

Welcome to your latest issue of Canadian Wealth Advisor! As always, we feature safety-conscious gainers ready to add to your long-term returns. Encana in undergoing change, but remains one of them.
ENCANA CORP. $5.36, is a buy for the Resources sector of your portfolio. The energy producer (Toronto symbol… Read More

This 2,358% gainer has more to offer you

FAIR ISAAC CORP. $355.62 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares o/s: 29.0 million; Market cap: $10.3 billion; No divd.) has returned 2,358% to our subscribers since we first recommended it in 1999. It gives you exposure to its leading FICO Scores software, which lets… Read More

Cenovus ups your dividend

CENOVUS ENERGY $11.40, is a buy. The company (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $14.0 billion; TSINetwork Rating: Average; Dividend yield: 2.2%; www.cenovus.com) continues to do a good job of paying down the loans it took out in May 2017 to buy full… Read More

Cenovus rewards its investors

CENOVUS ENERGY INC., $11, is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $13.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.3%; TSINetwork Rating: Extra Risk; www.cenovus.com) continues to do a good job paying down the loans it needed… Read More

Pengrowth may seek buyer

PENGROWTH ENERGY $0.25 (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $145.6 million; TSINetwork Rating: Speculative; No dividends paid; www.pengrowth.com) has two main properties: its Lindbergh oil sands project in Alberta, and its Groundbirch natural gas property in northeastern B.C.

Pengrowth produced an average of… Read More

Their strong balance sheets are a major plus

ARC RESOURCES $6.04 (Toronto symbol ARX; Shares outstanding: 352.1 million; Market cap: $2.2 billion; TSINetwork Rating: Speculative; Dividend yield: 9.9%; www.arcresources.com) produces oil and natural gas in Western Canada. Its average output of 139,054 barrels of oil equivalent per day is 74% natural gas and… Read More

Updating McCoy Global, Sasol Ltd. (ADR) and Hecla Mining

MCCOY GLOBAL $0.62 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 27.4 million; Market capitalization: $17.1 million; No dividends paid) sells power tongs and other hydraulic gear for oil and gas drilling rigs. (Power tongs are wrench-like tools that tighten and loosen the… Read More

Delphi is now a hold

DELPHI ENERGY $0.09 (Toronto symbol DEE; TSINetwork Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares o/s: 185.5 million; Market cap: $16.7 million) explores for, develops and produces oil and natural gas.
In the quarter ended June 30, 2019, Delphi’s cash flow per share fell 25.0%, to $0.06 from… Read More

This restart will lift Suncor’s revenue

SUNCOR ENERGY INC. $40 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.6 billion; Market cap: $64.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 4.2%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil company, with major projects in the Alberta oil sands. It… Read More

CVE’s debt is manageable

CENOVUS ENERGY $11.52 (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $14.2 billion; TSINetwork Rating: Average; Dividend yield: 1.7%; www.cenovus.com) acquired 100% of its main Alberta oil sands properties—Christina Lake and Foster Creek—in May 2017. It paid ConocoPhillips (New York symbol COP) $17.7 billion in… Read More