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.

  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

Computer Modelling adds cloud power

COMPUTER MODELLING GROUP, $10.90, is a buy. The company (Toronto symbol CMG; TSINetwork Rating: Extra Risk) (www.cmgl.ca; Shares outstanding: 82.2 million; Market cap: $895.4 million; Dividend yield: 1.8%) is now acquiring Sharp Reflections GmbH for $37 million.
Sharp is headquartered in Germany, with operations in the U.S. It aims… Read More

Higher cash flow on tap for Cenovus

CENOVUS ENERGY INC. $22 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.8 billion; Market cap: $39.6 billion; Price-to-sales ratio: 0.7; Dividend yield 3.3%; TSINetwork Rating: Average; www.cenovus.com) expects to spend between $4.5 billion and $5.0 billion in 2024… Read More

Our updates for safety-conscious investors

IMPERIAL OIL, $100.29, is a #1 Buy for 2024. The company (Toronto symbol IMO; Shares o/s: 523.4 million; Market cap: $53.6 billion; TSINetwork Rating: Average; Yield: 2.4%; www.imperialoil.ca) gets about 99% of its production from oil sands operations in Alberta. Imperial also has conventional oil and natural gas operations… Read More

Ovintiv expands in Canada

OVINTIV INC., $59.96, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 260.3 million; Market cap: $16.2 billion; TSINetwork Rating: Average; Dividend yield: 2.7%) operates four core oil and gas properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
Ovintiv recently agreed to acquire certain assets… Read More

Cenovus hits a key target

CENOVUS ENERGY, $22.57, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.8 billion; Market cap: $41.2 billion; TSINetwork Rating: Average; Dividend yield: 3.2%; www.cenovus.com) reported that its net debt (total debt less cash balances) fell to $4.0 billion in July 2024 from $5.06 billion… Read More

We see Devon’s acquisitions as savvy

Oil and gas stocks moved up as the U.S. and other economies recovered after the pandemic. The war in Ukraine also spurred prices. Prices have softened lately on fears of slower global economies, but we still recommend that most investors maintain exposure to the oil… Read More

New method boosts oil output

IMPERIAL OIL LTD. $106 is a buy. The company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 604.8 million; Market cap: $64.1 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.3%; TSINetwork Rating: Average; www.imperialoil.ca) recently started producing oil at its Grand Rapids oil sands project… Read More

Cenovus hits its debt target

CENOVUS ENERGY INC. $24 is a buy. Canada’s third-largest oil producer (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares o/s: 1.9 billion; Market cap: $45.6 billion; Price-to-sales ratio: 0.8; Dividend yield 3.0%; TSINetwork Rating: Average; www.cenovus.com) reported that its net debt (total debt less cash balances) fell… Read More

Uinta sale would free up cash

OVINTIV INC. $58 is a buy. The energy producer (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 264.1 million; Market cap: $15.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
The… Read More

Birchcliff Energy offers investors a high 7.1% yield

Like all natural-gas-weighted producers, Birchcliff will need gas prices to move higher in order to report stronger cash flow. However, we still like the long-term prospects for investors.
BIRCHCLIFF ENERGY, $5.54, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (Shares outstanding: 269.3 million; Market cap: $1.5… Read More

Use our updates to enhance your portfolio

SUNCOR ENERGY INC. $49 is a buy. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.3 billion; Market cap: $63.7 billion; Price-to-sales ratio: 1.2: Dividend yield: 4.4%; TSINetwork Rating: Average; www.suncor.com) is using self-driving trucks at its oil sands projects in Alberta to cut… Read More

Ovintiv mulls asset sale

OVINTIV INC., $55.19, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 267.0 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 2.9%) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
In June 2023, the company paid private equity firm EnCap… Read More

Rising cash flow cuts Ovintiv’s risk

OVINTIV INC. $58 is a buy. The company (Toronto symbol OVV; Conservative Growth Portfolio, Resources sector; Shares outstanding: 264.1 million; Market cap: $15.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.ovintiv.com) operates four core properties: Montney (B.C.), Permian (Texas), Anadarko (Oklahoma) and Uinta (Utah).
Ovintiv continues… Read More

Cenovus remains on track

CENOVUS ENERGY, $27.82, is a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 1.9 billion; Market cap: $50.4 billion; TSINetwork Rating: Average; Dividend yield: 2.6%; www.cenovus.com) has evacuated some of the workers at its Sunrise oil sands project due to wildfires in Northern Alberta.
Even so, the… Read More

Key buy for Devon

DEVON ENERGY, $48.65, is a buy. The company (New York symbol DVN; TSINetwork Rating: Extra Risk) (www.dvn.com; Shares outstanding: 627.6 million; Market cap: $30.3 billion; Dividend yield: 4.2%) is one of the largest explorers and producers of oil and gas in the U.S.
Devon continues to use acquisitions to… Read More