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

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

It lets you tap an energy rebound

BIRCHCLIFF ENERGY, $3.00, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (www.birchcliffenergy.com; Shares outstanding: 266.0 million; Market cap: $776.8 million; Dividend yield: 0.7%) explores for and produces oil and gas. Its average output of 78,649 barrels of oil equivalent per day is 76% natural gas and… Read More

Ovintiv targets its debt

OVINTIV INC., $30.88, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 261.0 million; Market cap: $8.1 billion; TSINetwork Rating: Average; Dividend yield: 1.5%) has now yielded to pressure from activist investor Kimmeridge Energy Management Co., which owns about 2.5% of Ovintiv’s shares. As a result,… Read More

Make sure you keep some exposure to oil

Oil prices continue to rebound from their 2020 lows as more parts of the global economy reopen with the rollout of COVID-19 vaccines. OPEC’s commitment to maintain its current production cuts also helps support prices.
That’s good news for these four high-quality producers. Their recent cost… Read More

CVE restores its dividend

CENOVUS ENERGY, $9.49, remains a buy for patient investors. 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) has now completed its acquisition of rival oil producer Husky Energy.
The combined firm is Canada’s third-largest producer of oil… Read More

Cost savings protect this dividend

CHEVRON CORP. $103 remains a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $195.7 billion; Price-to-sales ratio: 2.1; Dividend yield: 5.0%; TSINetwork Rating: Average; www.chevron.com) has completed its purchase of Noble Energy Inc. (New York symbol NBL) for… Read More

Computer Modelling set to rebound

COMPUTER MODELLING GROUP, $6.33, is still a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares o/s: 80.3 million; Market cap: $517.0 million; Dividend yield: 3.2%) reports that in the three months ended December 31, 2020, its revenue fell 16.8%, to $16.0 million from $19.3… Read More