Energy saw a recovery later in the year as demand outpaced supply. The sector has been hit by negative sentiments towards traditional energy and perceived non-ESG friendliness. The Biden presidency is a headwind in some regards, but existing energy infrastructure will become more valuable. There has been consolidation in the sector. Many companies in the sector offer high yield and stable dividends.
Here are the top 5 energy stocks to watch in 2021:
A core holding if you are bullish on oil. They have been increasing takeaway capacity and global demand remains strong. They are a cashflow machine and they are able to de-lever quickly.
2.-Tourmaline Oil Corp (TOU-T)
TOU is the cream of the crop. They focus on natural gas, which has lagged, but will catch up. The balance sheet outshines its peers. Their cash can pick up more companies. Managers have been buying shares. Lots of upside. (Analysts’ price target is $26.97)
It is going through a bit of a change for the best. The company has taken on a lot of debt while raising its dividends at a healthy clip in the past few years. They are reallocating their cashflow to reduce debt and raise dividends at a slower pace. The goal is to strengthen the…
4.-Canadian Natural Rsrcs (CNQ-T)
We have been going through a unique time when the small cap players outperform the large caps. You can own large caps with the likelihood of upside fairly large. At $50 oil, they are trading at a 16% free cashflow yield and 23% at $60. (Analysts’ price target is $33.77)
5.-Suncor Energy Inc (SU-T)
(A Top Pick Oct 01/20, Up 32.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SU is advancing nicely. We recommend trailing the stop up to $17.75 (currently at $13.50). This would all but guarantee a minimum return over 9%.