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Summary
- The S&P/TSX Capped Energy Index gained 69 per cent in the past one year, propelled by the recovering oil prices.
- Suncor stock has fuelled the Canadian energy sector with a rise of over 56 per cent in the last six months.
- Stocks of Enbridge climbed by about 23 per cent in the last six months.
Higher oil prices have largely kept energy sector investors intact, and the gradual recovery in consumption is likely to improve the stocks in the upcoming months. Oil-producing nations have also been guiding demand and supply according to the global fuel demand.
After witnessing an all-time low in 2020, oil prices are looking quite stabilized. The Saudi Arabia-led oil production cut for the current month has been well received by the Organization of the Petroleum Exporting Countries (OPEC) and affiliates.
Meanwhile, oil analysts are optimistic about energy stocks continuing their gaining spree through the second quarter of 2021. The S&P/TSX Capped Energy Index surged over 69 per cent in one year. The top constituents of the Canadian energy sector, Suncor Energy Inc (TSX:SU) and Enbridge Inc (TSX:ENB), also registered double-digit growth in the past one year.
Let us check out these large-cap energy stocks’ price performances.
Suncor Energy Inc (TSX:SU)
One of the most active stocks on the TSX, Suncor Energy has returned about 19 per cent this year and delivered over 56 per cent growth in the last six months. Its market cap is over C$ 38 billion, and its current share value is C$ 25.49 apiece (1.46PM EST).
Its 30-day average volume is about 7.7 million shares, and its price-to-cashflow ratio sit as 14.5. Suncor stock is still marching 14 per cent lower than its 52-week high of C$ 29.55 per share.
Suncor distributed a dividend of C$ 0.21 per share for the previous quarter. The current dividend yield is 3.311 per cent, as per TMX.
In the fourth quarter of 2020, the Alberta-based company earned cash of C$ 1.22 billion from its operations, marginally up compared to C$ 1.17 billion in the third quarter of 2020.
©Kalkine Group 2020
Enbridge Inc (TSX:ENB)
Enbridge stock has gained almost 14 per cent in 2021. Its 30-day trading volume stands at 5.5 million shares and its market capitalization is C$ 93.3 billion, as per TMX.
The energy stock is trading at C$ 46.11 apiece (1.52PM EST), as compared to its 52-week high of C$ 46.96 per share. It holds a remarkable dividend yield of 7.2 per cent and earning per share of C$ 1.48. It paid a quarterly dividend of C$ 0.835 apiece for the previous quarter.
Enbridge shares bounced back by 23 per cent in the last six months and yielded over 12 per cent in one year. The scrip is a few cents away from its 52-week high of C$ 46.96 apiece.
In 2020, Enbridge registered total cash generation of C$ 9.8 billion from its operations, as against C$ 9.4 billion in 2019.
The energy firm is likely to announce its first-quarter earnings for 2021 on May 7.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
