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Highlights
- The S&P/TSX Capped Energy Index has surged 45.4 per cent year-to-date (YTD).
- Penny stocks are risky, but some also have the potential of becoming multibagger stocks.
- TSX offers some penny energy stocks and you may consider exploring them.
Despite market volatility since the start of 2022, the Canadian energy sector has performed well compared to the other sectors. The S&P/TSX Capped Energy Index has surged 45.4 per cent year-to-date (YTD), and at the market open on Monday; the energy sector climbed 2.5 per cent.
Canada has some of the world's largest energy companies, and their stocks are available on the Toronto Stock Exchange. However, this article will not focus on large energy stocks like Enbridge (TSX:ENB) and Suncor (TSX:SU).
Also Read: 5 TSX uranium stocks to buy as demand for Canada supplies rise
Today, we are exploring some penny energy stocks listed on the TSX. Penny stocks are risky, but some also have the potential of becoming multibagger stocks only if an investor is willing to take the risk and wait for the long term.
Let's look at the following penny stocks and find out why they are worth exploring:
Gear Energy Ltd. (TSX:GXE)
The company acquires and develops locations for petroleum and natural gas. On Monday, the GXE stock climbed 3.1 per cent and registered a volume of 1.19 million shares.
The price and volume increase could be an indicator of an upward movement, and the GXE stock closed at C$ 1.32 per share on June 20.
In Q1 2022, the company profited as its net income was C$ 6.2 million compared to a net loss of C$ 3.49 million in Q1 2021. Gear Energy also distributed a quarterly dividend of C$ 0.01 per unit.
Perpetual Energy Inc. (TSX:PMT)
The oil and gas company has business operations in Alberta and derives most of its revenues from Canada. On June 20, the PMT stock surged by about eight per cent and closed at C$ 1.37 per share.
Perpetual Energy increased its production to 6,804 boe/d in Q1 2022, up by 26 per cent year-over-year (YoY). Also, the cash flow from operating activities was C$ 6.3 million, up by C$ 4.7 million from Q1 2021.
The company achieved a net income of C$ 7.2 million in Q1 2022 compared to a net loss of C$ 2.7 million in Q1 2021.
Western Energy Services Corp. (TSX:WRG)
The stock of Western Energy is among the cheapest energy stocks listed in the Canadian equities markets. On Monday, the WRG recorded a surge of 12.5 per cent and closed at C$ 0.045 per share.
Western Energy achieved solid financial results in the first quarter as its revenue increased by C$ 13.5 million from Q1 2021 to C$ 50.5 million.
The energy company also reduced its net loss to C$ 3.8 million in Q1 2022 from C$ 6.4 million in the same period of 2021.
Also Read: DOL & FTS: 2 TSX stocks to buy as World Bank warns of stagflation
Please note, the above content constitutes a very preliminary observation or view based on digital trends 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.