4 Oil and Gas Stocks to Monitor in August

Oil prices have retreated in recent weeks, but Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and other energy stocks could still have room to run this summer.

| More on:
oil, petroleum, refinery

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Oil prices have experienced downward pressure over the past two weeks as of early morning trading on July 23. This is compared to the highs that oil and gas soared to after U.S. president Trump decided to re-impose tariffs and effectively scuttle the Iranian nuclear deal. In July, President Trump took to Twitter to express his dissatisfaction with rising oil and gas prices and called for his Gulf state allies to rectify this.

The most recent weakness was sparked by concerns over fuel demand with finance ministers and central bank governors from the G20 warning about the threats to global economic growth. Those threats were twofold: the escalating trade wars between the largest world economies and rising geopolitical tensions. I covered the latter factor in an article early this month.

In truth these developments are linked. Worsening protectionism could result in a re-ordering of the global geopolitical structure, which would have further destabilizing effects. In this instance, oil and gas prices could suffer from volatility.

Where does this leave some of the top Canadian oil and gas giants? Canadian energy stocks powered gains on the TSX from mid-April into the early summer, but the market has retreated on weaker base prices. Here are some of the top energy stocks to watch in late July and early August.

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) fell 1.55% on July 20, and shares are down 4.4% over the past week. However, the stock is still up 15.8% in 2018 so far and over 40% year over year. The company is set to release its second-quarter results on July 26. It will be worth watching the release after a period of high prices in the broader market. Cenovus also offers a quarterly dividend of $0.05 per share, representing a 1.5% dividend yield.

Enbridge Inc. (TSX:ENB)(NYSE:ENB) stock dropped 2.85% on July 20. Shares have gathered impressive momentum since mid-April and are up 14% over a three-month period. The company is set to release its second-quarter results on August 3. Enbridge also boasts a very attractive quarterly dividend of $0.671 per share, which represents a 5.6% dividend yield.

MEG Energy Corp. (TSX:MEG) has suffered a steep drop in July after staying above double digits for the first time since the tail end of the oil shock in 2015. Shares are down 14.7% month over month, but the stock is still up 69% in 2018 so far. The company is set to release its second-quarter results on August 2.

Encana Corp. (TSX:ECA)(NYSE:ECA) is down 2.4% over the past week as of close on July 20. The stock has climbed 1.4% in 2018. Encana is set to release its second-quarter results this week. The company last announced a modest quarterly dividend of $0.015 per share, representing a 0.4% dividend yield.

Oil prices have reacted positively to geopolitical tensions over the past year, but there are warning signs that trade tensions could damage commodity prices going forward. The aforementioned stocks could still see positive price action following earnings after passing through high prices in the second quarter.

Should you invest $1,000 in Cenovus Energy right now?

Before you buy stock in Cenovus Energy, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Cenovus Energy wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $18,750.10!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 35 percentage points since 2013*.

See the Top Stocks * Returns as of 1/22/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Tom Gardner owns shares of Twitter. The Motley Fool owns shares of Twitter. Enbridge is a recommendation of Stock Advisor Canada.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Energy Stocks

engineer at wind farm
Energy Stocks

Suncor Energy: Buy, Sell, or Hold in 2025?

Here's the buy, sell or hold case for Suncor (TSX:SU) in 2025, given the shifting market dynamics and interest around…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Energy Stocks

Outlook for Fortis Stock in 2025

The year ahead looks good for Fortis stock, as the company ramps up its spending amidst the possibility of new…

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Got $1,000? 3 Pipeline Stocks to Buy and Hold Forever

Here are three top dividend-paying Canadian pipeline stocks you can buy right now and hold for as long as you…

Read more »

man touches brain to show a good idea
Energy Stocks

3 No-Brainer Energy Stocks to Buy With $1,000 Right Now

Given their solid underlying businesses and healthy growth prospects, I am bullish on these three energy stocks.

Read more »

oil pump jack under night sky
Energy Stocks

Top Energy Sector Stocks to Invest in for 2025

Here are three top Canadian energy sector stocks that look like solid buys in 2025 for those looking to ride…

Read more »

A meter measures energy use.
Energy Stocks

Got $2,500? 3 Utility Stocks to Buy and Hold Forever

These utility stocks are known for their solid earnings and consistent dividend growth, making them compelling investments.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Got $2,500? 3 Energy Stocks to Buy and Hold Forever

Along with capital gains, many Canadian energy stocks often pay dividend or enhance shareholder value through share buybacks.

Read more »

Oil industry worker works in oilfield
Energy Stocks

Canadian Investors: Should You Buy Canadian Natural Resources Stock While Under $50?

If there's one thing I love, it's a deal. And right now, CNQ stock looks like it could be a…

Read more »