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

Savvy mergers cut your energy-stock risk

Oil and gas prices have moved up lately. But the future direction of energy prices depends on a lot of things, particularly economic growth rates around the world in the wake of COVID-19. Meanwhile, though, well-established companies in the industry have taken advantage of the… Read More

Ovintiv hikes your income

OVINTIV INC., $34.53, is a buy. The energy producer (Toronto symbol OVV; Shares o/s: 261.1 million; Market cap: $9.0 billion; TSINetwork Rating: Average; Dividend yield: 2.0%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce… Read More

Two buys on the right track for growth

Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments or strategies that promise to brighten your prospects. Here are two buys that stand out this month:
THERMO FISHER SCIENTIFIC INC. $544.66, is a buy. The… Read More

Suncor is poised to reward investors

Even though oil demand and prices continue to rebound from last year’s COVID-19-induced lows, Suncor’s shares have suffered. That’s partly due to problems that will delay the ramp-up of its Fort Hills oil sands project in northern Alberta. However, cost savings from Suncor’s takeover of… Read More

Cenovus continues to pay down debt

CENOVUS ENERGY INC. $10 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $20.0 billion; Price-to-sales ratio: 0.8; Dividend yield 0.7%; TSINetwork Rating: Extra Risk; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy… Read More

Imperial targets ESG

IMPERIAL OIL LTD., $33.21, is a buy. The company (Toronto symbol IMO; Shares o/s: 711.7 million; Market cap: $24.9 billion; TSINetwork Rating: Average; Dividend yield: 3.0%; www.imperialoil.ca) is teaming up with four other oil sands operators in Alberta (Suncor, Cenovus, Canadian Natural Resources and MEG… Read More

Imperial aims to boost its ESG score

IMPERIAL OIL LTD. $36 is also a buy. This company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 734.1 million; Market cap: $26.4 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.6%; TSINetwork Rating: Average; www.imperialoil.ca) is teaming up with four other oil… Read More

Big merger is a plus for Cimarex

CIMAREX ENERGY, $69.76 (New York symbol XEC; TSINetwork Rating: Extra Risk) (Shares o/s: 102.8 million; Market cap: $7.3 billion; Divd yield: 1.6%) is now merging with Cabot Oil & Gas (symbol COG on New York). The companies have yet to come up with a new… Read More

Stable oil prices cut Ovintiv’s risk

OPEC recently announced that it would gradually increase oil production over the next few months. Despite the extra supply, oil prices rose on the news because industrial activity around the world continues to recover from the pandemic. Stable prices will also help Ovintiv with its… Read More

CVE aims to cut debt

CENOVUS ENERGY, $11.06, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $21.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.6%; www.cenovus.com) has completed its acquisition of rival oil producer Husky Energy.
To help pay down the extra… Read More

These integrated producers cut your risk

We continue to recommend conservative investors limit their oil holdings to integrated producers such as these three. Their upstream (or producing) businesses benefit from higher crude prices. Their downstream (refining) businesses, on the other hand, convert crude into gasoline and other fuels and so profit… Read More

Cenovus absorbs Husky

CENOVUS ENERGY, $9.59, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $19.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.7%.; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy in January 2021.

The combined firm is… Read More

Smart buy for Enerplus

ENERPLUS CORP., $7.14, is a buy for aggressive investors. The company (Toronto symbol ERF; Shares outstanding: 256.8 million; Market cap: $1.8 billion; TSINetwork Rating: Speculative; Dividend yield: 1.7%) has just closed its acquisition of Williston Basin assets. It paid Hess Corp $312 million U.S.

The producing… Read More

WW repositions itself for a digital market

Weight Watchers rebranded itself as WW in the fall of 2018, when it expanded its weight-loss services to include “Wellness that works” programs. The move reflects the company’s goal of promoting healthy living, in general, rather than just weight loss.
More important, it also focused on… Read More