These Canadian energy stocks offer attractive entry points

The sector has struggled so far this year, but these picks have strong upside potential.

Vikram Barhat 27 September, 2017 | 5:00PM

The recent uptick in crude oil prices, the International Energy Agency forecast for growth in demand, along with falling output and the resultant reduction in supply glut have been fuelling a growing sense of optimism within the energy sector.

In Canada, particularly, the rising oil prices and demand trend have a positive impact on the overall strength of the domestic economy, to which the energy sector is a significant contributor.

However, unlike the U.S., the signs of this energy turnaround are yet to become visible in the Canadian energy stocks. While the S&P 500 Energy (Sector) Index has gained nearly 3.5% year-to-date, its Canadian counterpart, the S&P/TSX Capped Energy Index, is down 15.8%, for the same period, as of Sept 21, making it one of the worst-performing sectors in Canada so far this year.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Cenovus Energy Inc10.12 CAD-4.08
Enbridge Inc50.84 CAD-2.59
TC Energy Corp72.87 CAD-1.99

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.