Tamarack (TVE) & DPM: Should you look at these TSX commodity stocks?

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Tamarack (TVE) & DPM: Should you look at these TSX commodity stocks?

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 Tamarack (TVE) & DPM: Should you look at these TSX commodity stocks?
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Highlights

  • Prices of certain commodities are rallying amid the Russia-Ukraine tensions as investors remain worried due to the market uncertainty, which has driven their interest from growth equities to commodity-based options.
  • This rise comes amid growing sanctions against Russia, which seem to be threatening the global supply of commodities like energy, metals and crops.
  • As a result, stocks which have exposure to relevant commodities are gaining investor attention, considering the market forces and economic factors.

Prices of certain commodities are rallying amid the Russia-Ukraine tensions as investors remain worried due to the market uncertainty, which has driven their interest from growth equities to commodity-based options.

This rise comes amid growing sanctions against Russia, which seem to be threatening the global supply of commodities like energy, metals and crops.

As a result, stocks which have exposure to relevant commodities are gaining investor attention, considering the market forces and economic factors.

Also read: Dream (DRM) & FirstService (FSV): 2 TSX housing stocks to see in March

With the current market scenario in mind, let us explore two TSX commodity stocks.

Tamarack Valley Energy Ltd (TSX: TVE)

Tamarack increased its revenue by 275 per cent year-over-year (YoY) to C$ 243 million in Q4 FY2021. The C$ 2-billion market cap oil and gas company also noted a YoY rise of 397 per cent in its cash flow of C$ 118 million from operating activities.

Tamarack Valley Energy Ltd (TSX: TVE) Q4 FY2021 results

Tamarack, which is set to pay a monthly dividend of C$ 0.008 apiece on March 15, saw its stocks soar by over 129 per cent in the past 12 months.

TVE scrip closed at C$ 5.46 apiece on Friday, March 4, nearly one per cent down from its 52-week high of C$ 5.51 (March 2).

Dundee Precious Metals Inc (TSX: DPM)

Dundee earned a net profit of US$ 51.5 in the fourth quarter of fiscal 2021, up from US$ 50.3 million earned a year ago. The C$ 1-billion precious metal miner has also hiked its quarterly dividend, payable on April 18, by 33 per cent to US$ 0.04 apiece, up from US$ 0.03.

Dundee stock closed at US$ 7.89 apiece on Friday, up by over one per cent. At this price level, the metal stock was trading almost 19 per cent below its 52-week high of US$ 9.72 (April 21).

Bottomline

Tamarack and Dundee have an exposure to commodities like oil and metals, prices of which are relevant in the current market scenario. Hence, these rising commodity prices could impact their stock and overall performances. However, investment-related decisions should ideally be guided by one’s return target and risk profile apart from market conditions.

Also read: Is CNQ an oil and gas stock to buy as its Q4 profit soars to $2.5B?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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