Enbridge (TSX:ENB) & Suncor (TSX:SU): 2 Energy Stocks To Buy

While Canada’s benchmark index grew about 5.5 per cent, the S&P/TSX Capped Energy Index rose 11.6 per cent in the last three months amid rising inflation in the US. Few of the top volume gainers on the TSX composite index have also been key energy sector players, including Enbridge Inc (TSX:ENB) and Suncor Energy Inc (TSX:SU).

With the global energy demand expected to grow this year in the light of a post-COVID economic rebound, oil and gas producers are expected see steady growth prospects.

On that note, let’s analyze the stock performances of Enbridge and Suncor Inc.

Enbridge Inc (TSX:ENB)

The optimism around its robust earnings in the first quarter ending March 31, 2021, has boosted Enbridge’s stock performance in the past couple of weeks. On May 7, the day it announced its latest quarter results, the energy stock’s volume peaked at 30.3 million.

Enbridge stock’s returns remained fairly stable in the last six months, rising about 21 per cent. Currently priced at C$ 46.82, the stock could rise further in the wake of rising oil prices.

Its earnings per share in the latest quarter stood at 81 cents earnings. The company also currently offers a quarterly dividend of C$ 0.835 per share, with a dividend yield of 7.13 per cent, as per TMX.

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Suncor Energy Inc (TSX:SU)

After hitting a rough patch last year amid the pandemic, Suncor Energy stock recorded a 46 per cent growth over the last six months. Its returns in the past one year stands at 21 per cent, hitting a record high of C$ 29.55 apiece during this period.

Apart from improved financial results in the latest quarter, the energy stock also triggered some interest among investors with the recent announcement of a deal with ATCO Ltd.

The two companies are set to develop a facility for the generation of clean hydrogen, with the target to hit an annual capacity of about 300,000 tons.

This project announcement is likely to intrigue investors as Canada increases its focus on hydrogen-based and other renewable fuels to hit its goal of a green economy.

The energy giant’s average trading volume touched 9.6 million in the last 10 days, as per the TMX.

Its earnings per share stands at C$ 0.02 per cent. It also currently offers a quarterly dividend of C$ 0.21 per share.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

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