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

Crescent Point is cheap

CRESCENT POINT ENERGY $2.19 (Toronto symbol CPG; Shares o/s: 529.3 million; Market cap: $1.2 billion; TSINetwork Rating: Speculative; Dividend yield: 0.5%; www.crescentpointenergy.com) produces oil and gas in Western Canada, with a focus on its Bakken light oil development in southeastern Saskatchewan.
In the quarter ended June 30, 2020,… Read More

Summer heat gives Apache a boost

APACHE CORP. $14 is still a hold, but only for aggressive investors. The company (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 377.4 million; Market cap: $5.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.7%; TSINetwork Rating: Average; www.apachecorp.com) produces oil and natural gas from properties… Read More

Buy Devon & Cimarex for an energy rebound

The direction of oil and gas 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 setback to pick up properties and employees who… Read More

These safety-conscious stocks remain buys

OVINTIV INC., $14.66, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.8 million; Market cap: $3.8 billion; TSINetwork Rating: Average; Dividend yield: 3.6%) recently became a U.S. company and changed its name from Encana Corp.
A key reason for the move to the U.S. was to… Read More

Imperial is a top oil stock

IMPERIAL OIL LTD. $21.84, is a buy for safety-conscious investors. The stock (Toronto symbol IMO; Shares o/s: 734.1 million; Market cap: $16.0 billion; TSINetwork Rating: Average; Dividend yield: 4.0%; www.imperialoil.ca) lets you tap Canada’s third-largest publicly traded oil producer, after Suncor (No. 1) and Canadian Natural… Read More

Computer Modelling saves cash

COMPUTER MODELLING GROUP $5.13 is still a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares o/s: 80.2 million; Market cap: $419.7 million; Dividend yield: 3.9%) cut its quarterly dividend by 50%, to $0.05 a share from $0.10, with the June 2020 payment. As a.. Read More

Bonavista moves to a sell

BONAVISTA ENERGY, $0.15, is now a sell. The company (Toronto symbol BNP; Shares outstanding: 265.2 million; Market cap: $38.6 million; TSINetwork Rating: Speculative; No dividends paid; www.bonavistaenergy.com) has total debt of $844.0 million, which dwarfs its depressed market cap of $37.5 million.
But not only that, Bonavista is… Read More

Steady cash flow cuts investors’ energy risk

The global economic slowdown resulting from the coronavirus has hit some industries especially hard. That includes airlines, hotels, casinos and restaurants—and oil and gas. But unlike many of those companies, the best energy stocks for investors continue to report positive cash flow. Equally important, your… Read More

IMO protects your value

IMPERIAL OIL LTD. $22.67, is a buy for safety-conscious investors. The stock (Toronto symbol IMO; Shares o/s: 739.2 million; Market cap: $16.8 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.imperialoil.ca) lets you tap Canada’s third-largest publicly traded oil producer, after Suncor (No. 1) and Canadian Natural… Read More

Strong balance sheet cuts your risk

IMPERIAL OIL LTD. $18 is still a buy for the Resources sector of your portfolio. The integrated oil producer (Toronto symbol IMO; Conservative Growth and Income Portfolios; Shares outstanding: 743.9 million; Market cap: $13.4 billion; Price-to-sales ratio: 0.4; Dividend yield: 4.9%; TSINetwork Rating: Average; www.imperialoil.ca) is cutting its… Read More

Now is a good time to sell these two stocks

Long-time readers know that we are constantly evaluating the stocks we recommend to see if they should remain in the Power Growth Investor newsletter.
Although most stocks have dropped in the current market downturn, we feel top-quality shares will be among the first to rebound. However,… Read More

Benefit from these key updates on your picks

NUTRIEN LTD. $44 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares o/s: 572.9 million; Market cap: $25.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.9%; TSINetwork Rating: Average; www.nutrien.com) is world’s largest producer of agricultural fertilizers, shipping about 27 million tonnes annually. It… Read More

Their low debt cuts your energy risk

Oil and gas prices remain under pressure, but we still believe most investors benefit from maintaining some exposure to the industry as part of a balanced portfolio. Now more than ever, however, you should stick to producers with positive cash flow—despite low energy prices. That… Read More