Four cheap Canadian energy stocks

These leading Canadian energy stocks have made substantial gains so far this year but are still trading below their fair values

Vikram Barhat 1 May, 2019 | 5:00PM

Things are looking up for the North American energy companies. Better than expected earnings and higher crude oil prices due to the Trump administration’s tighter sanctions on Iran’s oil are creating strong tailwind for the energy sector. As production cuts bring supply and demand into balance, the prices are expected to continue to tick higher. Further, the International Energy Agency forecasts solid increases in oil demand, led by China and India.

The trend has particularly favourable implications for the Canadian energy sector, one of the strongest pillars of the nation’s economy. It’s little surprise that energy stocks are on a roll. With a whopping 21% and 18% gains respectively for the S&P/TSX Capped Energy Index and the S&P 500 Energy index, energy is one of the best performing sectors on both sides of the border for the year to date, as of April 26, 2019.

These leading Canadian energy stocks have made substantial gains so far this year but are still trading below their fair values making them attractive options for those looking to gain or boost their energy exposure. These are well-managed corporations with strong balance sheets and are nicely positioned for greater profitability as oil prices and demand claw their way back to higher levels, according to Morningstar equity research.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Canadian Natural Resources Ltd29.94 CAD1.05
Cenovus Energy Inc6.47 CAD0.47
Enbridge Inc40.52 CAD-0.10
TC Energy Corp57.60 CAD0.82

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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