Canadian Natural Rsrcs (CNQ.TO) Buy, Sell or…

Canadian Natural Rsrcs (CNQ.TO)

69.97

-1.73 (2.41%)

as of Sep 16, 2026, 7:14:19 pm Market Open.

1408 watching

WEAK BUY

There was a fear that Q2 results were going to be bad. In his opinion, Q2 is irrelevant. Outlook for next year is positive. He thinks there are better opportunities but it is a good name too.

PAST TOP PICK

(A Top Pick Aug 07/19, Down 19%) Sold it last March. CNQ didn't work out, simple as that. The hit on oil demand by COVID and the Saudi-Russia spat triggered his sell. The pipeline shortage was another factor. CNQ has recovered a bit though.

BUY

Exxon Mobil (XOM)? Near-term, he's cautious about the energy sector. XOM has a broad base of assets and pays a high 8% dividend, but is underperforming the S&P. XOM has been struggling as a stock. He prefers a company outperforming peers, such as CNQ. CNQ pays a 6.8% dividend. It's had rising relative strength since the market bottomed, from $6.50 to $8.50 today. CNQ has made most of the investments they need for coming years, so CNQ has become a cash-flow vehicle.

DON'T BUY

He does not consider energy producers to be infrastructure plays as they are exposed to commodity price trends. He prefers to own the midstream businesses.

DON'T BUY

We are past the 'best-before' date and core investments in energy are going to be less and less for institutions and individual investors. You want to wait and see what a second COVID wave will look like as we get into the flu season. The futures curve points back to $50 in 2027. There will be challenges in the sector. He does not feel it is investible.

COMMENT

It is tough to knock CNQ. The Saudis are rumoured to be divesting their holdings. They have lots of liquidity. He does not own it as it is so large within the energy index. He thinks he would do better owning names that are not already known.

DON'T BUY

Did the Saudis buy into Suncor and CNQ? He believes this is true, that a large Canadian pension fund sold these stocks to the Saudis. Can't comment on the stocks themselves; anything oil and gas been difficult. This industry can't catch a break. Oil prices can't trade at these prices for long, and a second wave will hurt these stocks more.

WATCH

He owns no producers in Canada, nor the US. Near term contracts on oil have moved substantially. Longer term they have not moved. This is a mid-term trade. There will be a lot more volatility in the space. We have to get through a lot of inventory before fundamentals will change on oil.

BUY ON WEAKNESS

Balance sheet safe? Their debt increased to $19.9 billion by end-March and equity is $34 billion. He feels the balance sheet is safe, but it is very levered to oil prices. As he thinks WTI could drop below $20 again soon on rising global inventory, he would be cautious. They have not cut the dividend, but have not taken any impairments on reserves just yet. He thinks this may cause some concern about the dividend longevity. Don't chase it, wait for a lower price.

DON'T BUY

Phase I was the valley of death, when oil prices went to single digits. Now in Phase II, oil prices have recovered and the market is now waiting to see what happens to oil demand and how quickly it recovers. He holds 12 names, 8 of them oil producers. He would rather own a smaller cap producer. CNQ has tough competition on its cash flow to keep paying the dividend (he was surprised they didn't cut the dividend). He thinks when a buyer enters on a small cap stock, it can turn higher more aggressively.

COMMENT

A great company, one of Canada's best oil companies with a super balance sheet. But CNQ couldn't do anything during the recent oil war. What could they do? They can't control the price of oil. This will be a consolidator over time. Smaller energy companies won't make it through. Oil is a tough sector with a murky future. Will oil return to $50 or $60? Oil companies have to wait for the oil price to rise.

COMMENT

The composition of this ETF has become highly concentrated. Five names account for 78% of its value. CNQ and SU account for most it. Both of those names have rallied well compared to their peers as buyers in the US have been stepping in. However, their hedge books are naked to oil prices right now. He would prefer to own small cap names with good hedge books, if you select the right ones he thinks.

BUY ON WEAKNESS

All oil has been decimated. Shocking. But these stocks can bounce nicely on optimistic day. They have free cash flow to service their debt. Don't chase it today, but nibble under $12 and hold it for long term. They have a great suite of assets and they will pay down their debt. Down the road, expect buybacks and acquisitions.

PAST TOP PICK

(A Top Pick Mar 18/19, Down 54%) Everything went well until the Saudi/Russia conflict. He is not buying oils at this point.

BUY

He owns CNQ instead of Suncor. These two are the ones you want to own with the volatility in the oil market. They both have the ability to manage through this and have a chance to buy a bunch of assets. The smaller caps are just fighting to live another day. Risk that oil can go lower.

Showing 361 to 375 of 1,727 entries

Most Recent Experts

Ivana Delevska

Spear Advisors LLC

Stephen Weiss, Founder, Short Hills Capital Partners

Short Hills Capital Partners

Joe Terranova

Virtus Investment Partners

Jim Lebenthal

Cerity Partners

Jenny Harrington, CEO, Gilman Hill Asset Management

Gilman Hill Asset Management

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Canadian Natural Rsrcs (CNQ.TO)