- An oil and gas stock here stock has a price-to-earnings (P/E) ratio of 2.3
Currently, the S&P/TSX Composite Index is down 0.48 per cent year-to-date (YTD). And, yet it may be said that it weathered the bearish storm this year has been for equities, better than many other global indices.
Furthermore, it’s not been all downhill. The benchmark index, in fact, scaled to a new all-time high in 2022, breaching for the first time the 22,000 mark.
It fell 0.6 per cent in January, spiked 3.6 per cent in March and is in the red by 3.5 per cent in April, to date. In such choppy times, mid cap stocks might be an option to consider.
Mid cap stocks generally are a balance between stability and pace of growth. Let’s look at five TSX mid cap stocks that make for an interesting watch in May.
Crescent Point Energy Corp (TSX:CPG)
The CPG stock closed Thursday, April 28, at C$9.12. The stock has rocketed 102 per cent in nine months and is up 35 per cent year-to-date.
Crescent’s market cap is C$5.2 billion and its stock has a price-to-earnings (P/E) ratio of 2.3. CPG’s dividend yield is 1.974 per cent.
MEG Energy Corp (TSX:MEG)
MEG’s stock closed at C$19.44 Thursday after having spiked 4.7 per cent.
It has a market cap of C$5.9 billion and its P/E ratio of 21.4 is nowhere near comparable to that of the oil and gas stock mentioned above it.
However, MEG seems to be on a fairly steady growth trajectory over the past year and has returned 66 per cent YTD. It’s 52 week low of C$6.33 came in April last year and its 52-week high of C$21.17 came in March 2022.
It has gained 182 per cent in 12 months.
PrairieSky Royalty Ltd (TSX:PSK)
PrairieSky differs from the above two oil and gas stocks in the sense that it lets third-party companies develop its gas properties and collects royalty. Its stock closed Thursday at C$17.80.
The PSK stock too seems to be on a growth trajectory over the last year although it’s not as pronounced as MEG. Like MEG, its P/E ratio of 24 is nowhere near comparable to CPG’s 2.3.
However, of the three oil and gas stocks on this list, it has the best one-week return, three per cent, going into May.
PSK has gained about 34 per cent in 12 months and 31 per cent YTD.
SSR Mining Inc (TSX:SSRM)
SSRM closed Wednesday at C$22.39. The stock is up 38 per cent in three months.
Though a strong US dollar might put pressure on precious metals, SSRM has easily beaten the S&P/TSX Composite Index Metals and Mining (Industry) YTD return of 10.94 per cent, having gained 26.49 per cent this year.
Turquoise Hill Resources Ltd (TSX:TRQ)
TRQ closed at C$35.72 Thursday. The stock has soared 122 per cent in a year.
In April so far, it has lost 4.8 per cent but its index, the mining index mentioned above, has lost 7.6 per cent in the same period.
TRQ has returned nearly 72 per cent in 2022 and remains an interesting watch going into May.
The energy sector and the materials sector are the second and third biggest sectors of the TSX and today account for over 30 per cent of the benchmark index. It is likely their performances so far this year is why the TSX Composite Index may not be as badly hit as some other indices.
With the Russian-Ukraine war still not abating, these sectors and the above mid cap stocks make for an interesting watch in May.
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.