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.

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

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Energy Stocks Library Archives

Energy Stocks

Use these two to tap rising energy prices

Oil and gas stocks have moved up lately as the U.S. and other economies recover. We continue to recommend that most investors maintain some exposure to the oil and gas industry—as part of a balanced portfolio. But to cut risk, you should stick with producers that have positive cash flow even at low energy prices....

2 min read

Pat McKeough

Energy Stocks

Boost your Resource returns with these two

Prices for commodities such as crude oil and copper have jumped as the global economy rebounds from last year’s pandemic lockdowns. We feel one of the best way for investors to gain exposure to the Resources sector, and earn steady income, is with global giants Chevron and BHP.

CHEVRON CORP....

2 min read

Pat McKeough

Energy Stocks

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 when oil prices fall....

5 min read

Pat McKeough

Energy Stocks

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 now Canada’s third-largest producer of oil and natural gas, with output of about 750,000 barrels of oil equivalent per day....

1 min read

Pat McKeough

Energy Stocks

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....

1 min read

Pat McKeough

Energy Stocks

Both of these lead in digital technology: Domino’s Pizza and Chipotle Mexican Grill

With COVID-19, both Domino’s and Chipotle dropped along with the market. But each has used a savvy strategy to rebound and climb to new highs. We think both companies are well-positioned to capitalize on their popular food offerings to keep attracting more dine-in, pick-up and takeout customers....

2 min read

Pat McKeough

Energy Stocks

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 expanding its digital offerings....

1 min read

Pat McKeough

Energy Stocks

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....

1 min read

Pat McKeough

Energy Stocks

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....

1 min read

Pat McKeough

Energy Stocks

Strong balance sheets support these oil buys: Cimarex Energy and Devon Energy

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 setback to pick up properties and employees who might be harder to find in more-prosperous times.

Those top companies also have the balance sheet strength to survive, even if energy prices drop, and to continue paying dividends....

2 min read

Pat McKeough

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Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

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.