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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Oil prices have more than doubled over the last year to today’s price of roughly $83 U.S. a barrel. Natural gas prices are also up. Increased industrial activity is driving those gains as the world recovers from the pandemic. Still, energy prices will likely remain… Read More
Investors have moved away from oil stocks in the past few months due to government mandates to cut carbon emissions. However, it’s likely crude prices will move up over the next few years as producers focus on their current properties and spend less on exploration… Read More
CENOVUS ENERGY, $12.85, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $25.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.5%.; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy in January 2021.
The combined firm is… Read More
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… Read More
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… Read More
Oil prices continue to recover as COVID-19 lockdowns end. It seems likely that prices will remain firm as the economy further opens. We continue to recommend all investors maintain some exposure to oil, particularly with high-quality integrated producers like Imperial Oil.
IMPERIAL OIL LTD. $34 is… Read More
OVINTIV INC., $34.53, is a buy. The energy producer (Toronto symbol OVV; Shares o/s: 261.1 million; Market cap: $9.0 billion; TSINetwork Rating: Average; Dividend yield: 2.0%) operates three core properties: Montney (B.C.), Anadarko (Oklahoma) and Permian (Texas). In addition to natural gas, these fields produce… Read More
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… Read More
Long-time readers know that we keep you informed of important news about the stocks we cover. That means highlighting developments or strategies that promise to brighten your prospects. Here are two buys that stand out this month:
THERMO FISHER SCIENTIFIC INC. $544.66, is a buy. The… Read More
Even though oil demand and prices continue to rebound from last year’s COVID-19-induced lows, Suncor’s shares have suffered. That’s partly due to problems that will delay the ramp-up of its Fort Hills oil sands project in northern Alberta. However, cost savings from Suncor’s takeover of… Read More
CENOVUS ENERGY INC. $10 is a buy. The company (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $20.0 billion; Price-to-sales ratio: 0.8; Dividend yield 0.7%; TSINetwork Rating: Extra Risk; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy… Read More
IMPERIAL OIL LTD., $33.21, is a buy. The company (Toronto symbol IMO; Shares o/s: 711.7 million; Market cap: $24.9 billion; TSINetwork Rating: Average; Dividend yield: 3.0%; www.imperialoil.ca) is teaming up with four other oil sands operators in Alberta (Suncor, Cenovus, Canadian Natural Resources and MEG… Read More
IMPERIAL OIL LTD. $36 is also a buy. This company (Toronto symbol IMO; Conservative and Income Growth Portfolios, Resources sector; Shares outstanding: 734.1 million; Market cap: $26.4 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.6%; TSINetwork Rating: Average; www.imperialoil.ca) is teaming up with four other oil… Read More
Oil prices have almost doubled over the last year to today’s price of roughly $73 U.S. a barrel. Natural gas prices are up as well. Increased industrial activity is driving those gains as the world recovers from the pandemic.
Still, energy prices will likely remain subject… Read More
CIMAREX ENERGY, $69.76 (New York symbol XEC; TSINetwork Rating: Extra Risk) (Shares o/s: 102.8 million; Market cap: $7.3 billion; Divd yield: 1.6%) is now merging with Cabot Oil & Gas (symbol COG on New York). The companies have yet to come up with a new… Read More
OPEC recently announced that it would gradually increase oil production over the next few months. Despite the extra supply, oil prices rose on the news because industrial activity around the world continues to recover from the pandemic. Stable prices will also help Ovintiv with its… Read More
CENOVUS ENERGY, $11.06, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $21.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.6%; www.cenovus.com) has completed its acquisition of rival oil producer Husky Energy.
To help pay down the extra… Read More
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… Read More
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… Read More
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… Read More
