-
Suncor Energy Inc. (SU)
-
Canadian Natural Resources Limited (CNQ)
-
Tourmaline Oil Corp. (TOU)
-
Cenovus Energy Inc (CVE)
Q: I don't have any exposure to energy and wanted to know what your views are for the sector going forward. In the current market environment, what percentage of your portfolio would YOU invest in it? Your top stocks for growth? Would the 4 stocks mentioned be good candidates? Thanks in advance.
5i Research Answer:
We would be very comfortable with these four. CNQ, TOU and SU are among our favourites and we would consider CVE solid. We could suggest TVE for some mid cap exposure at an attractive valuation. The sector is very cheap and balance sheets are solid. It may not soar, with concerns on global economic growth and more potential drilling under Trump policies. But we think the sector can do well. The TSX is nearly 17% which we would consider too high. We would more comfortable in the 7.5% range.