Suncor (SU) & TC Energy (TRP): 2 TSX stocks to watch as oil prices rise

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Suncor (SU) & TC Energy (TRP): 2 TSX stocks to watch as oil prices rise

Energy stocks on TSX
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  • Oil prices are high, and TSX stocks in the oil and gas sector may be on investors’ radar
  • The TSX Composite Index has performed better than the popular S&P 500 so far in 2022
  • Both the below-mentioned stocks are slowly transitioning toward clean energy

Data suggests the TSX Composite Index has fared better than its relatively popular counterpart, the S&P 500 Index in 2022. As of writing, the one-year return of the TSX Composite stood at over 13 per cent, while that of the S&P 500 was nearly seven per cent.

In terms of year-to-date (YTD) return, the former was in green, and the latter was in the red. This arguably reflects Canadians’ sentiment toward stocks, and also that of the global investors.

Separately, energy prices are hovering on a higher trajectory, particularly after the war in Ukraine. Russia is a major supplier of oil and gas, and sanctions by the West may disrupt the global supply chain, which has led to global oil prices becoming one of the biggest worries for governments and central banks. In this light, let’s take a look at two energy stocks listed on the TSX.

Suncor Energy (TSX: SU)

Suncor Energy’s stock makes for a close watch for two reasons. First, it is a major energy company that is into the producing and refining of petroleum in Canada and the neighboring US. Second, Suncor is also claiming transition toward renewable energy, a sector that is a highlight of multi-lateral meetings of heads of governments.

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Suncor Energy’s news includes its latest financial results. In February, the company reported the financial statements for the fourth quarter of 2021.

Suncor’s adjusted operating earnings saw a decisive uptick in the quarter against a loss in the fourth quarter of 2020. The figure stood at nearly C$1.29 billion in the latest quarter, which also boosted net earnings to nearly C$1.55 billion against a net loss in Q4 2020.

Last year, Suncor Energy had acquired the control of the Syncrude Joint Venture, which might add to Suncor’s operational efficiency. As of writing, Suncor Energy had a market cap of nearly C$58 billion, with earnings per share of 2.77.

The stock’s P/E and P/B ratios stood at 14.6 and 1.5 respectively. The price per share was nearly C$40.5, which was below the 52-week high price of C$43.1 but was decisively up as compared to its 52-week low.

TC Energy Corporation (TSX: TRP)

TC Energy is a major gas pipeline operator, with interests in Canada, the US, and Mexico. The stock makes for a close watch in that TC Energy’s power generation capacity is also substantial.

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TC Energy’s news includes its 2021 financial results, which also talked about the company’s transition to clean energy. The company floated the Requests for Information (RFI) last year to identify projects in wind and solar energy.

In Q4 2021, TC Energy reported its net income attributable to common shares as C$1.1 billion, which was similar to Q4 2020.

In November 2021, TC Energy had announced a hydrogen production agreement with Hyzon Motors.

As of writing, TC Energy had a market cap of nearly C$68 billion, with earnings per share of 1.84. The stock’s P/E and P/B ratios stood at 37.9 and 2.29, respectively. The price per share was C$69.66, which was below the 52-week high price of C$73.

Return of TSX Composite and S&P 500

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Bottom line

As the price of energy stays on a higher trajectory due to forces like the Russia-Ukraine conflict, the above two TSX energy companies make for a good watch. Besides, both are dividend paying stocks.


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