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Summary
- Stocks of Cenovus Energy have soared by over 40 per cent in the last one month.
- Cenovus’ 10-day average trading volume is 6.57 million units.
- Stocks of Suncor have swelled by nearly 25 per cent in the last one month.
- Suncor’s 10-day average stock trading volume is 13.07 million units.
Riding on the back of impressive results of phase 3 vaccine trials shared by biotech firm Moderna and pharma giant Pfizer, the Toronto Stock Exchange (TSX) Energy Index soared over 26 per cent in November. This indicates, the energy sector could be on the rebound. Pfizer and Moderna claimed 90 per cent and 95 per cent effectiveness of their vaccine candidates against Covid-19, respectively. This outshines the efficacy level of 50 per cent that is set by the Food and Drug Administration (FDA) for approval of a vaccine for emergency approval. Pfizer-BioNTech duo is hoping to release its vaccine doses by Christmas this year.
As investors lapped up vaccine news and shifted to riskier assets, Canadian energy stocks also started gain. Let us delve into the following two trending stocks: Cenovus Energy Inc. (TSX:CVE) and Suncor Energy Inc. (TSX:SU).
Cenovus Energy Inc. (TSX:CVE)
Cenovus Energy, which was recently acquired by Husky Energy, announced that it will slash its staff by 20 to 25 per cent. The two companies are set to form the third-largest oil and natural gas company in Canada and lead to about C$ 1.2 billion in reserves, Cenovus Energy said in a statement.
Cenovus Stock Performance
Stocks of Cenovus Energy have jumped by over 40 per cent in the last one month. After plunging during the March market meltdown, it soared nearly 161 per cent since then. However, the stock has recorded a drop of nearly 55 per cent year-to-date.
Cenovus scrips indicate a decline of nearly 14 per cent in the last three months. Its 10-day average trading volume is 6.57 million units.
The company has a current market capitalization of C$ 7.55 billion and its price-to-book (P/B) ratio of 0.444. Cenovus’ stock offers a negative return on equity (ROE) and assets. Its debt to equity ratio is 0.21. Its current price-to-cashflow ratio is 9.50.
Cenovus has been placed among TMX’s top energy stocks across the TSX and TSXV with the largest price gains in the last 30 days.
Cenovus Financial Highlights
The energy company posted free funds flow of C$ 266 million in the third quarter ended 30 September 2020. The company said that this amount aided offset its net debt down to C$ 7.5 billion at the end of the quarter.
It’s cash from operating activities amounted to C$ 732 million in Q2 2020, down 12 per cent from C$ 834 million in Q3 2019.
The company posted an operating loss of C$ 452 million and a net loss of C$ 194 million in the third quarter of 2020.
Suncor Energy Inc. (TSX:SU)
Stocks of Canadian integrated energy company Suncor skyrocketed on Monday, November 9, during intraday trading hours after the news of Moderna’s interim third phase study.
This oil and gas producer saw some dark days of financial and operational catastrophe amid the COVID-19 pandemic this year. The energy stocks are currently rallying on the TSX, with a 10-day average share trading volume of 13.07 million units and its 30-day average stock trading volume of 9.11 million units.
Suncor Energy Stock Performance
Suncor Energy stocks have plummeted about 54 per cent year-to-date. The scrips have surged over 30 per cent since the COVID-19 pandemic-led market crash in March. The stock has jumped nearly 25 per cent in the last one month.
Suncor stocks surged 30 per cent in November so far, with an increase of nearly 7 per cent on November 16 following Moderna’s vaccine update.
Its current market capitalization stands at C$ 30.45 billion, and its price-to-book (P/B) ratio of 0.838. Suncor’s stock delivers a negative return on equity (ROE) and assets. The debt to equity (D/E) ratio is 0.58.
Suncor Energy has been ranked among TMX’s top energy stocks across the TSX and TSXV with the largest price gains in the last 30 days.
The energy company pays a cash dividend of C$ 0.21 per share to its shareholders and holds a current dividend yield of 4.206 per cent. Suncor’s three-year dividend growth is 3.78 per cent, and its five-year dividend growth is 6.02 per cent.
Suncor Financial Highlights
The company reported an operating loss of C$302 million in Q3 2020, compared to operating earnings of C$1.114 billion in Q3 2019.
The company registered a net loss of C$12 million in Q3 2020, as compared to net earnings of C$1.035 billion in the prior-year quarter.
Suncor posted a cash flow from operating activities of C$1.245 billion in Q3 2020, comprising non-cash working capital.
