TFSA Investors: These 2 Energy Stocks Have Taken Off Since the Start of Last Week!

These two large-cap energy stocks have been outperforming the TSX Index in recent weeks, including Crescent Point Energy Corp (TSX:CPG)(NYSE:CPG), which is up more than 15% since September 7.

| More on:

The TSX Index, Canada’s bellwether for the stock market, is up just 1.0% since the start of last week; however, stocks in these two energy names have each vastly outperformed the broader averages over the same stretch.

Investors who are looking to generate alpha for their portfolios may want to give the shares in these two companies a closer look as potential additions to their Tax-Free-Savings Accounts.

Shares in Crescent Point Energy (TSX:CPG)(NYSE:CPG) fell to a new all-time low earlier this month, at one point trading below the $7 mark on the Toronto Stock Exchange.

However, since then CPG stock has done nothing but rebound in the opposite direction, up 22.2% from its September 7th lows, including a gain just shy of 6.0% since last week’s opening bell.

CPG shares yield 4.42% against Monday’s price following a nearly 30% decline since late April.

Unfortunately for Canadians, the country’s energy markets have lagged behind U.S. peers for much of the year amid a bottleneck in supply that has prevented inventories from reaching U.S. refineries and created a troublesome discount for Canadian product.

Investors are hoping that the issue will short-lived. as several major pipeline projects are already underway or pending approval, including Enbridge’s largest undertaking ever, its Line 3 Replacement project, which is projected to double the current capacity of its existing Line 3 pipeline.

Provided Crescent Point can manage through this rough patch, the future remains bright for this oil sands producer, which still owns billions of dollars’ worth of untapped reserves.

Cenovus Energy (TSX:CVE)(NYSE:CVE) is another Canadian energy name that has outperformed as of late, closing up 4% for the week ended September 21, but following that up with a strong gain in Monday’s trading of 3.4%.

While some exploration and production firms have languished amid lower oil prices in 2018, as an integrated energy producer, Cenovus is at least somewhat insulated, as the firm can take advantage of lower prices for crude to lower input costs as part of its refining operations.

Keep in mind that while oil prices have slumped since 2014, consumers haven’t exactly seen a commensurable drop in the prices they have been paying to fuel up, and while that’s unfortunate for the average Canadian household, it hasn’t exactly been a terrible thing for those owning CVE stock.

CVE shares have risen just shy of 40% from their 2018 lows; however, now is a good time to take a second look at the CVE stock — yielding 1.6% annually and trading below its book value — having given back some of those gains in recent months.

Timing your entry point can be a fortuitous endeavour, but Monday’s break above the stock’s 200-day moving average could be a telling indicator that a bullish breakout is now underway in the CVE shares.

Stay smart. Stay hungry. Stay Foolish.

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 Jason Phillips has no position in any of the stocks mentioned. Enbridge is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »