5 TSX oil stocks to buy and hold for long as energy prices hit $100 - Kalkine Media

July 19, 2022 09:08 AM EDT | By Kajal Jain
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Highlights

  • Canada’s main stock index saw a triple-digit gain of 201.17 points on July 18
  • The energy index gained roughly four per cent this day 
  • VET stock catapulted by almost 217 per cent in one year

Canada’s main stock index saw a triple-digit gain of 201.17 points on Monday, July 18, largely supported by the energy index which gained by roughly four per cent. The rally in oil stocks came as crude oil prices surged back to over C$ 100 per barrel this day.

Though oil volatility could prevail in the near term, investors with high-risk tolerance can explore the ongoing price fluctuations and look into TSX oil stocks like Whitecap (TSX: WCP), Crescent (TSX: CPG), Vermilion (TSX: VET) etc for the long term.

Let us have a closer look at the following five Canadian oil stocks. 

1.     Whitecap Resources Inc (TSX: WCP)

Whitecap, on July 14, hiked its monthly dividend to C$ 0.037 (payable on August 15), up from the previous dividend payout of C$ 0.03. It is a midcap company with a market capitalization exceeding C$ 5.46 million,

WCP stock rose by almost 57 per cent year-over-year (YoY) and recorded a year-to-date (YTD) gain of nearly 18 per cent. As per Refinitiv data, WCP stock saw a Relative Strength Index (RSI) of 44.31 on July 18. The RSI below 30 generally indicates an oversold market situation, while above 70 depicts an overbought condition.

2.     Crescent Point Energy Corp (TSX: CPG)

Crescent, earlier in July, raised its quarterly dividend to C$ 0.08 (to be paid on October 3), higher than the previous payment of C$ 0.065. The oil producer stated that it was the fourth dividend increase in less than a year, marking an annualized dividend of C$ 0.32.

CPG stock swelled by over 114 per cent in 52 weeks. Refinitiv findings show that CPG stock had an RSI of 45.99 on July 18.

WCP, CPG, VET, CVE +1 TSX oil stocks as oil prices climb back to $100©Kalkine Media®; ©Garis Studio via Canva.com

3.     Vermilion Energy Inc (TSX: VET)

Vermilion is a C$ 4.61-billion market cap company with oil and natural gas production operations across North America, Australia and Europe. The midcap energy company completed the acquisition of Leucrotta Exploration to increase its oil production capabilities.

VET stock catapulted by almost 217 per cent in one year, and based on Refinitiv data, Vermillion stocks held a growing RSI value of 56.29 on July 18.

4.     Baytex Energy Corp (TSX: BTE)

Baytex reported a return on equity (ROE) of almost 123 per cent, signaling profitability. Stocks of Baytex Energy delivered a return of nearly 203 per cent in the past 52 weeks.

According to Refinitiv data, Baytex stocks seem to be on a moderate trend, with an RSI of 49.17 on July 18.

5.     Cenovus Energy Inc (TSX: CVE)

Cenovus is a large-cap oil and gas company with upstream and refining operations. The C$ 43-billion market cap company, on June 13, announced its plans to purchase the remaining 50 per cent stake in the Sunrise project from BP to strengthen its oil sand operations.

CVE stock jumped by nearly 113 per cent in 12 months. According to the data from Refinitiv, Cenovus stocks held an RSI value of 38.13 on July 18.

Bottomline

Oil fluctuations can prevail in the near term and impact the price performance of these TSX oil stocks. Hence, investors should consider risk levels when considering these TSX stocks. Also, some of the above-listed stocks could bring dividend income in addition to exposure to oil prices.

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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