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Summary
- TSX Energy Index has gained nearly 28 per cent in the last one month.
- Suncor and Enbridge stocks have swelled by 47 per cent and by nearly 17 per cent in the last one month, respectively.
- Enbridge pays a quarterly cash dividend of C$ 0.81 with a current dividend yield of 7.598 per cent.
The pandemic-related events have continued to pique investors’ interest in the stock market. With the recent positive news on the vaccine front, many are expecting a recovery for the coronavirus-hit economy and portraying better projections for energy stocks and fossil fuels.
S&P/TSX Capped Energy Index has climbed nearly 28 per cent in the last one month. On December 4, the Canadian energy index popped up over 5 per cent, guided by encouraging developments from several COVID-19 vaccine candidates worldwide.
Health Canada, the Canadian health regulator, is likely to grant approval to the Pfizer-BioNTec COVID-19 vaccine candidate by the second week of December.
Let us look at top two energy stocks and discuss their market movements: Suncor and Enbridge.
Suncor Energy Inc. (TSX:SU)
Current Stock Price: C$ 22.97
In the last one month, this energy stock has rallied by a whopping 47 per cent. The stock added nearly 8 per cent on December 4 and returned over 13 per cent in the last three months. Its 10-day average stock trading volume has surged to 16 million units.
Its current market capitalization is approximately C$ 35.03 billion. Its current price-to-book (P/B) ratio is 0.964, price-to-cashflow (P/CF) ratio is 7.80, and its debt-to-equity ratio stands at 0.58 as per TMX data.
The energy company pays a quarterly cash dividend of C$ 0.21 with a current dividend yield of 3.657 per cent.
The company recently announced its 2021 production outlook and capital allocation. It is expecting an average upstream production of 740,000 to 780,000 barrels of oil equivalent per day. Its projected debt repayment in 2021 is in the range of C$ 500 million and C$ 1.0 billion.
Suncor is likely to repurchase stocks worth C$ 500 million in its fiscal year 2021.
Enbridge Energy Inc. (TSX:ENB)
Current Stock Price: C$ 42.64
Calgary-based energy firm stocks have increased by almost 17 per cent in the last one month. The stock has marginally gained by 3 per cent in the last three months.
The energy producer made it to TMX’s following stocklists: Top Volume, Top Dividend, and Top Energy.
Its 10-day average stock trading volume is 7 million units. The energy company holds a quarterly cash dividend of C$ 0.81, and its current dividend yield is 7.598 per cent. In the last 30-days, the firm has outperformed its peers with the highest price gains across TSX and TSXV.
It has a current market capitalization of C$ 86.355 billion. Its price-to-book (P/B) ratio is 1.503, and the current price-to-cashflow (P/CF) ratio is 8.90. The stock offers a return on equity of 3.28 per cent, and its debt-to-equity ratio stands at 1.18 as per the TMX portal.
