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
We’re constantly re-evaluating our stock picks. That means moving out of picks with limited growth prospects in favour of stocks in high-growth areas such as, say, pharmaceuticals and technology. These two face market conditions that will weigh on them for the foreseeable future....
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....
SUNCOR ENERGY INC....
CENOVUS ENERGY, $4.78, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $5. billion; TSINetwork Rating: Average; No dividends paid; www.cenovus.com) has agreed to acquire rival oil producer Husky Energy Inc....
DEVON ENERGY, $8.63, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares o/s: 382.6 million; Market cap: $3.4 billion; Dividend yield: 5.1%) is a leading producer of oil and natural gas from wells in Wyoming, Texas, Oklahoma and New Mexico.
Devon will now buy WPX Energy (symbol WPX on New York) to create one of the biggest U.S....
Devon will now buy WPX Energy (symbol WPX on New York) to create one of the biggest U.S....
CENOVUS ENERGY INC. $5.15 remains a buy for patient investors. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $6.2 billion; Price-to-sales ratio: 0.4; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.cenovus.com) owns 100% of the Christina Lake and Foster Creek oil sands properties in Alberta....
OVINTIV INC., $10.89, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 259.9 million; Market cap: $2.9 billion; TSINetwork Rating: Average; Dividend yield: 4.5%) became a U.S. company earlier this year and changed its name from Encana Corp.
Ovintiv operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas)....
Ovintiv operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas)....
CHEVRON CORP. $72 remains a buy. The company (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.9 billion; Market cap: $136.8 billion; Price-to-sales ratio: 1.2; Dividend yield: 7.2%; TSINetwork Rating: Average; www.chevron.com) is the second-largest integrated oil producer in the U.S....
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, Crescent’s average daily output fell 29.9%, to 120,842 barrels (90% oil, 10% gas) from 172,476....
In the quarter ended June 30, 2020, Crescent’s average daily output fell 29.9%, to 120,842 barrels (90% oil, 10% gas) from 172,476....
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.
The stock has regained some of its recent losses after falling to just $3.80 in March 2020, with the start of the COVID-19 pandemic, from $34 in January 2020....
The stock has regained some of its recent losses after falling to just $3.80 in March 2020, with the start of the COVID-19 pandemic, from $34 in January 2020....
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 might be harder to find in more-prosperous times.
Those top companies also have the balance sheet strength to get through low prices—and keep paying dividends....
Those top companies also have the balance sheet strength to get through low prices—and keep paying dividends....