ALV, RZE, SOU, TAL, CWC: TSXV stocks under $8 as gasoline prices top $5

Highlights

• The average price for gasoline was trading at US$ 5.014 at 6:14 AM EST on Monday, June 13.
• Gasoline prices rocketed by about 87 per cent on a yearly basis.
• The TSX energy index grew by roughly 69 per cent in 2022.

The average price for gasoline crossed US$ 5 and was trading at US$ 5.014 as of writing on Monday, June 13, according to the AAA Gas Prices site, a public service website that tracks retail gasoline products in the United States.

This increase in gasoline prices, which could widen the rise in fuel costs that is already pushing inflation higher, also reflects a significant growth from its average price of US$ 3.078 a year ago, as per AAA.

Gasoline prices can continue to peak higher considering the supply crunch led by the Ukraine crisis and high demand resulting from easing pandemic restrictions. Hence, investing in oil and gas stocks can look rewarding to many investors. 

Keeping these points in mind, let us explore five TSXV oil and gas stocks.

1.     Alvopetro Energy Limited (TSXV:ALV)

Alvopetro Energy said that its daily sales averaged 2,501 barrels of oil equivalent per day (boepd) in Q1 2022 compared to Q1 2021. The junior energy company also mentioned that natural gas accounted for 96 per cent of its total sales volume in the latest quarter. 

Alvopetro Energy further pointed out that its natural gas, oil, and condensate sales jumped by 101 per cent year-over-year (YoY), mainly due to high' commodity prices' and increased 'daily sales volume' in Q1 2022.

ALV stock delivered a return of roughly 143 per cent in a year. ALV seems to be on a bullish trend as its Relative Strength Index (RSI) was 70.61 on June 10, according to data fetched from EODHD/Others.

Also read: CVE, CPG, SU: 3 TSX energy stocks that are soaring this year

2. PetroTal Corp (TSXV:TAL)

PetroTal Corp reported average production of 15,778 barrels of oil per day based on 67 production days in Q1 FY2022. PetroTal posted a quarterly production of 11,746 bopd in the latest quarter, 60 per cent higher than Q1 2021.

Stocks of PetroTal galloped by over 259 per cent in 52 weeks. As per EODHD/Others, TAL stock's RSI stood at 67.29 on June 10, slightly down from the overbought mark of 70.

3.     Southern Energy Corp (TSXV:SOU)

Southern Energy Corp holds a return on equity (ROE) of 82.01 per cent, reflecting high profitability. The junior oil and gas company also focus more on equity financing over debt, as reflected by its debt-to-equity (D/E) ratio of 0.44.

The C$ 120 million market cap company saw its stock climb over 363 per cent year-to-date (YTD). According to EODHD/Others findings, this energy stock seems to be headed upward, with an RSI value of 69.91 on June 10.

4.     Razor Energy Corp (TSXV:RZE)

Razor Energy Corp increased its average oil production by 48 per cent in the first quarter of 2022 compared to Q1 2021. Razor Energy also registered a growth of C$ 10.5 million to C$ 9.7 million in adjusted funds flow in the latest quarter compared to Q1 2021, underpinned by enhanced operating netbacks and increased production.

RZE stock gained by almost 579 per cent in nine months and noted an RSI value of 56.21 on June 10, according to information from EODHD/Others.

Also read: 3 TSX natural gas stocks to buy right now & hold forever: TOU, ENB, CVE

5.     CWC Energy Services Corp (TSXV:CWC)

CWC Energy provides contract drilling and production services to companies exploring oil and gas resources. In Q1 FY2022, its contract drilling revenue zoomed by 128 per cent while its production service revenue increased by 39 per cent on a YoY basis.

CWC stock grew by nearly 135 per cent in nine months and held an RSI value of 58.82 on June 10, as per EODHD/Others. 

Bottomline

In contrast to the TSX benchmark index, which has fallen by over four per cent this year, the TSX energy index grew by roughly 69 per cent in 2022. Hence, investors may explore these cheap TSXV stocks, which are all under C$ 8, to drive benefit from higher energy prices.

(With inputs from Reuters)

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.