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
IMPERIAL OIL LTD. $35 is still a buy for investors. The integrated oil producer (Toronto symbol IMO; Conservative Growth and Income Portfolios; Shares outstanding: 752.9 million; Market cap: $26.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.5%; TSINetwork Rating: Average; www.imperialoil.ca) likely spent between $1.8 billion and $1.9 billion on exploration and upgrades to its existing operations in 2019....
Despite persistently low oil and gas prices, you should continue to hold Resource stocks in your portfolio (as much as 15% of the total). To cut your risk, however, investors should stick with producers—like Cenovus and Encana—that have high-quality properties and low operating costs.


CENOVUS ENERGY INC....
If you’re tempted to add beaten-down oil and gas stocks to your portfolio, you’re facing a dilemna. Many continue to report positive cash flow and trade at extremely low multiples to cash flow. Some even pay regular dividends. But at the same time, investors are very concerned about the prospect of weakening oil and gas demand in a slowing global economy....
Long-time readers know that we are constantly re-evaluating our stock picks for you. Here are three companies that we now feel fall short of offering you the kind of high-growth prospects TSI Power Growth Investor aims to deliver our subscribers....
PENGROWTH ENERGY, $0.055, is a sell for our subscribers. The troubled energy producer (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $28.0 million; TSINetwork Rating: Speculative; No dividends paid; www.pengrowth.com) has two main properties: its Lindbergh oil sands project in Alberta, and its Groundbirch natural gas property in northeastern B.C.


Pengrowth has now accepted a takeover offer....
IMPERIAL OIL LTD., $32.38, is a buy for safety-conscious investors. The stock (Toronto symbol IMO; Shares o/s: 764.2 million; Market cap: $24.2 billion; TSINetwork Rating: Average; Divd. yield: 2.7%; www.imperialoil.ca) lets you tap Canada’s third-largest publicly traded oil producer, after Suncor (No....
Welcome to your latest issue of Canadian Wealth Advisor! As always, we feature safety-conscious gainers ready to add to your long-term returns. Encana in undergoing change, but remains one of them.


ENCANA CORP. $5.36, is a buy for the Resources sector of your portfolio. The energy producer (Toronto symbol ECA; Shares outstanding: 1.4 billion; Market cap: $6.7 billion; TSINetwork Rating: Average; Divd....
FAIR ISAAC CORP. $355.62 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares o/s: 29.0 million; Market cap: $10.3 billion; No divd.) has returned 2,358% to our subscribers since we first recommended it in 1999....
Alberta’s new United Conservative government has extended the previous NDP administration’s cap on oil production in the province until the end of 2020. That’s good for investors and the industry.


While output restrictions have lifted the price for Western Canadian oil, a lack of new pipeline capacity continues to limit revenue growth for producers, and gains for investors....
CENOVUS ENERGY $11.40, is a buy. The company (Toronto symbol CVE; Shares outstanding: 1.2 billion; Market cap: $14.0 billion; TSINetwork Rating: Average; Dividend yield: 2.2%; www.cenovus.com) continues to do a good job of paying down the loans it took out in May 2017 to buy full control of its main Alberta oil sands properties—Christina Lake and Foster Creek.


To address its debt load, the company has sold several less-important properties and aggressively cut its operating costs....