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

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 million a year earlier....

1 min read

Pat McKeough

Energy Stocks

Look for Birchcliff shares to build on their recent jump

Energy stocks are moving up lately, and Birchcliff shares have almost doubled in the last two months. Given the company’s steady output and cash flow, and its manageable debt, we think the stock can go higher.

BIRCHCLIFF ENERGY, $3.25, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (www.birchcliffenergy.com; Shares outstanding: 265.9 million; Market cap: $896.2 million; Dividend yield: 0.6%) explores for and produces oil and gas....

1 min read

Pat McKeough

Energy Stocks

Ovintiv attracts an activist

OVINTIV INC., $23.30, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.9 million; Market cap: $5.6 billion; TSINetwork Rating: Average; Dividend yield: 2.1%) has drawn the attention of activist investor Kimmeridge Energy Management Co.

Kimmeridge, which owns about 2.4% of Ovintiv, wants it to undertake several actions to improve shareholder value....

1 min read

Pat McKeough

Energy Stocks

Ovintiv gains from lower costs

OVINTIV INC. $22 is still a buy. The energy producer (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 259.8 million; Market cap: $5.7 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.2%; TSINetwork Rating: Average; www.ovintiv.com) operates three core natural gas properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas)....

1 min read

Pat McKeough

Energy Stocks

Use these two to profit from oil rebounds: Suncor and Imperial Oil

Oil stocks have rebounded lately, mainly on hopes COVID-19 vaccines will boost travel volumes in 2021. Our top industry picks remain Suncor and Imperial Oil—their refining operations help shield them from lower crude prices.

SUNCOR ENERGY INC....

2 min read

Pat McKeough

Energy Stocks

Our updates keep you on top of your stocks

TELUS, $25.55, is a buy. The company (Toronto symbol T; Shares outstanding: 1.3 billion; Market cap: $32.8 billion; TSINetwork Rating: Above Average; Dividend yield: 4.9%; www.telus.com) continues to roll out its new 5G (fifth-generation) wireless networks....

2 min read

Pat McKeough

Energy Stocks

These two are cheap in relation to cash flow

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....

2 min read

Pat McKeough

Energy Stocks

Our updates keep you on top of your stocks: Imperial Oil Ltd., Loblaw Companies and Metro Inc.

IMPERIAL OIL LTD., $22.74, is a buy for safety-conscious investors. The company (Toronto symbol IMO; Shares o/s: 734.1 million; Market cap: $16. billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.imperialoil.ca) cut this year’s spending on exploration and upgrades by 45% to $900 million....

2 min read

Pat McKeough

Energy Stocks

Ovintiv lowers its costs

OVINTIV INC., $17.17, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.9 million; Market cap: $4.3 billion; TSINetwork Rating: Average; Dividend yield: 2.8%) continues to improve its efficiency in response to the COVID-19 pandemic and falling oil prices....

1 min read

Pat McKeough

Energy Stocks

Use these updates to enhance your returns: Apache Corp., Yum China Holdings Inc. and HP Enterprise Co.

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 in the U.S., Egypt and the U.K.

In the third quarter of 2020, Apache’s average daily production rose 0.5%, to 393,529 barrels from 391,400 a year earlier....

2 min read

Pat McKeough

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Browse Premium Topics

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.