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The energy sector has been hit hardest due to extended lockdowns across the world. The same pain is also quite apparent in the transport industry. Now, Ontario province is set to resume its COVID-led shutdowns that would trigger work-from-home orders and alter daily commute, shopping, and eating out for this month.
The above changes will impact energy companies and public mobility in the region and outside regions. The demand for international and domestic flights and raw materials and fuels is already low and will not completely recover before the mid of this decade, as per the International Energy Agency (IEA) estimates.
Here are three stock that investors may avoid in April:
Pieridae Energy Limited (TSX:PEA)
The energy stock is already in the red zone for the last three months. On top of that, the stock has tumbled almost 15 per cent in the past one week, led by the plunging oil prices.
At the previous closing price of C$ 0.46, the stock was trading ~11% below the 60-day simple moving average (SMA), as per EODHD/Others data. It is a bearish indicator.
The oil and gas stock has also failed to deliver any positive returns this year, down as much as 3.15 per cent year-to-date (YTD). The company has a negative triple-digit return on equity.
In the fourth quarter of 2020, the company reported a net loss per basic and dilutes share of C$ 0.29. It might extend its losses in the first quarter of 2021, as the global and domestic oil consumption demand stands low.
Air Canada (TSX:AC)
The giant airline company has witnessed an unprecedented meltdown amid renewed lockdown and extended bailout talks with the federal government.
At the last closing price of C$ 26.15, the stock was trading ~2.56 per cent below the 30-day SMA, again a bearish indicator.
The stock may further go down in April due to continuing flight restrictions, grounded aircraft, and mounting debt.
The company reported operational losses from its annual results of 2020. Its share price has also slightly decreased by 0.6 per cent in one month.
Investors could stay back to wait for the final aviation sector relief package and permanent reopening of routes in April.
Image Source: Kalkine Group @2020
Forza Petroleum Limited (TSX:FORZ)
This fuel stock is also looking quite low on energy and down approximately 20 per cent month-to-date (MTD). The stock is in bearish zone with the 200-day SMA indicator shrinking to 4 per cent.
Its closing price on the last day of March was C$0.08.
It has negative earnings per share of C$ 0.29. Its return on equity also down by 20.42 per cent. Crude Oil WTI Futures are also down by over 3 per cent MTD.
In the financial year of 2020, the petroleum company’s revenue decreased by 46 per cent year-over-year (YoY). However, its expenses per barrel declined by 5 per cent YoY.
So, fooling around with the above three stocks might not be the good choice in the short-term period.
