You need to keep some exposure to oil

Article Excerpt

We continue to recommend you maintain some exposure to oil stocks as part of the Resources portion of your overall portfolio. The four oil producers we analyze below still have substantial reserves; they’re also doing a good job of cutting their costs. That puts them in a strong position to increase profits as the global economy recovers from COVID-19. SUNCOR ENERGY INC. $19 remains a buy for long-term gains. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $28.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.4%; TSINetwork Rating: Average; is Canada’s largest integrated oil firm, with major projects in the Alberta oil sands. Just as important, investors tap the company’s four refineries (three in Canada and one in Colorado), along with 1,750 Petro-Canada gas stations. Suncor continues to cut its production and operating costs in response to slowing demand for oil due to the COVID-19 pandemic. In the three months ended September 30, 2020, average…

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