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Highlights
- The S&P/TSX Capped Energy Index is up over 41 per cent year-to-date (YTD)
- A stock mentioned here has rocketed nearly 136 per in the last 12 months
- Another stock has returned nearly 97 per cent in the same period
Much may be said about the energy sector’s performance in the TSX Composite Index in 2022. It is arguably the reason why Canada’s benchmark index has, perhaps, fared better than some of the others around the globe.
The sector currently accounts for 17.15 per cent of the TSX Composite. The S&P/TSX Capped Energy Index is up over 41 per cent year-to-date (YTD).
Canada’s oil and gas sector may have opportunities to grow as countries seek reducing their dependence on Russian oil.
With this in mind, let’s look at some TSX oil and gas stocks.
Enbridge Inc (TSX:ENB)
Enbridge’s stock closed Friday, April 22, at C$57.07. It has gained 23.26 per cent in a year and on a year-to-date basis it is up over 15.5 per cent.
Its return on equity is at 11.32 per cent. Its dividend yield is over six per cent.
The stock recently saw its 52-week high of C$59.09 on April 21.
Suncor Energy Inc (TSX:SU)
This integrated energy company saw its stock close Friday at C$41.10. SU has soared over 63 per cent in a year.
On a YTD basis, the stock has risen almost 30 per cent. Its dividend yield is over four per cent and its price to ratio is 14.8.
SU’s 52-week high was also on April 21 when it touched C$43.83. On April 4, the company said it will be looking to hydrogen and renewable fluids to meet its vision of becoming a net-zero emission company by 2050
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Cenovus Energy Inc (TSX:CVE)
Cenovus’ stock closed Friday at C$21.96. The stock has rocketed nearly 136 per in the last 12 months.
This year it has returned nearly 42 per cent, bettering even its index. The CVE stock has a price to earnings ratio of 81.3. Its dividend yield is 0.638 per cent.
The stock’s 52-week high was also recent. It touched C$23.13 April 19. On April 21, it donated US$3 million to Nature Conservancy of Canada (NCC) to help the natural habitat conserving effort as part of its new social investment strategy.
Also read: Earth Day 2022: 5 lesser-known Canadian renewable energy stocks to eye
Imperial Oil Limited (TSX:IMO)
Imperial Oil’s stock closed Friday at C$61.34. The stock has returned nearly 97 per cent in a year.
So far in 2022, it has ballooned over 34 per cent. It is another stock on this list that saw its 52-week high on April 21 this year. On that day, it reached C$65.66.
IMO’s price to earnings ratio is 17.5. It has a dividend yield of 2.217 per cent.
Also read: Is investing in gold worth considering during high inflation?
TC Energy Corporation (TSX:TRP)
An energy infrastructure company with power generation and pipeline assets, its stock closed at C$72.50 Friday.
The stock has risen 23.59 per cent in 12 months and 22.24 per cent YTD. On April 8, it touched C$74.39, a one year high.
Its stock has a price-to-earnings ratio of 39.4. Its dividend yield stands at nearly five per cent.
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Also read: How to handle a bearish phase in the market?
Bottom line
It is possible geopolitical tensions will persist and this may help Canada’s oil sector. However, bear in mind that the threat of Covid-19 lockdowns loom and might hamper growth in this sphere.
In light of the above factors, these companies and stocks’ performance in May make for an interesting watch.
Also read: How does current inflation compare to 1970s stagflation?
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.
