Member Login
  1. Category
    2. /
  2. Investing
    3. /
  3. Energy Stocks
    4. /

Energy Stocks

What are energy stocks? 

Energy stocks represent partial ownership in companies that supply electricity and fuel for the global economy. The energy sector in Canada is vast, comprising a large portion of the TSX. Energy stocks include: 

  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies 

(Renewable energy stocks are part of the TSX’s utilities sector.)

How can you pick energy stocks?

1. Look for companies with a promising future 

It’s no surprise that the energy sector is under intense scrutiny. With climate change at the front of many people’s minds (from governments to investors), energy companies, old and new, are constantly adapting to a new world. Many people want cleaner energy. And it’s the energy sector’s challenge to make clean energy available — and profitable, too. 

For that reason, investors will do well to look for innovative companies that are actively solving contemporary energy problems. Though we’re not suggesting investors ignore bigger companies in oil or natural gas, we are suggesting you keep an eye on the future as you’re picking your energy stocks. 

Given the direction the world is going, ask yourself: who will be around in 20, 30, or even 40 years? That’s one of the biggest questions you can answer as an energy stock investor. 

2. Analyze an energy company’s financial standing

The future of an energy company depends in part on how it’s handling its finances now. Given that prices within the energy sector are extremely volatile — just look at how the price of gas fluctuates — you want to be sure an energy company has the financial strength to withstand a recession. Some factors you may want to analyze include: 

  • Strong balance sheet: the company should have lots of liquid cash on hand, as well as a capacity to borrow (if needed). It should also have low amounts of debt and a high investment grade. 
  • Low production costs: the company shouldn’t be spending the majority of its revenue on producing energy. The company should have a stable revenue with minimal exposure to price fluctuations. 
  • Conservative dividend payout ratio: though everyone likes to make money on dividends, if a company dishes too much out, it could end up cutting or reducing its dividend program during hard times. 

3. Check here for our writer’s picks

Our writers are constantly analyzing the energy sector, as they look for stocks that are growing, as well as those that are under- or over- valued. Keep checking back here to see which stocks they recommend — and which they don’t. 

To learn more about Energy Stocks, take a look at our Guide to Energy Stocks for all the details.

Check back here for the most up to date information about energy stocks.

Top Articles

Energy Stocks

2 Top TSX Energy Stocks to Buy in January 2023

| Robin Brown

Here are two top TSX energy stocks that had a great year in 2022 and could be primed for strong…

Read more »

An engineer works at a hydroelectric power station, which creates renewable energy.
Energy Stocks

Why Algonquin Power & Utilities Stock Slid 49.3% Last Year

| Tony Dong, MSc, CETF®

Here's why shares of AQN fell hard last year.

Read more »

Energy Stocks

Is CNQ Stock a Buy in January 2023?

| Andrew Walker

CNQ stock is down from the 2022 high. Is it time to buy?

Read more »

Energy Stocks

Worried About a Recession? 3 TSX Giants to Outpace the Market

| Aditya Raghunath

Recession-resistant TSX stocks such as Fortis and Hydro One are well poised to deliver outsized returns to shareholders in 2023.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

The Best Energy Dividend Stock for a Decade of Passive Income

| Aditya Raghunath

Canadian Natural Resources is a top TSX stock that has delivered stellar gains to long-term investors. Let's see why CNQ…

Read more »

oil and gas pipeline
Energy Stocks

Enbridge Is a High-Yielding Canadian Dividend Stock to Buy Now and Own Forever

| Adam Othman

Consider adding Enbridge stock to your portfolio, as it still trades below its all-time highs to capture its high-yielding dividend…

Read more »

Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Energy Stocks

2 Energy Stocks You Can Buy Right Now to Play The EV Boom

| Adam Othman

Add these two Canadian renewable energy stocks to capitalize on the growing EV popularity.

Read more »

Recent Energy Stocks News

Energy Stocks

It’s Raining Dividends at Tourmaline Oil (TSX:TOU)

| Vineet Kulkarni

Here's why Tourmaline Oil stock Is a top natural gas play for 2022.

Read more »

Energy Stocks

Suncor Energy (TSX:SU) Stock: A Dirt-Cheap Bargain

| Andrew Button

Suncor Energy Inc (TSX:SU)(NYSE:SU) stock is currently cheap. Should you buy?

Read more »

Energy Stocks

Why Brookfield Renewable Is the Most Valuable Stock on the TSX Today

| Amy Legate-Wolfe

This is your sign to dig into Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) fundamentals, and see it as the value opportunity of a…

Read more »

Energy Stocks

2 Top Energy Stocks That Have Zoomed 20% Over the Last Month

| Ambrose O'Callaghan

Energy stocks like Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Imperial Oil Ltd. (TSX:IMO)(NYSE:IMO) are on fire right now.

Read more »

Energy Stocks

XEG: Up 100% in the Last Year, Is This Energy ETF Still a Buy?

| Aditya Raghunath

The XEG ETF has gained momentum in the last year but has underperformed the market over the long term.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Tuesday, January 18

| Jitendra Parashar

Crude oil prices are trading near their multi-year high this morning, which could help TSX energy stocks surge today.

Read more »

Energy Stocks

Why Did Surge Energy (TSX:SGY) Stock Zoom 20% Last Week?

| Vineet Kulkarni

Small-cap energy stocks could see steep rallies in 2022 with strength in oil and gas prices.

Read more »

oil and gas pipeline
Energy Stocks

2 Energy Stocks That Could Double in 2022

| Christopher Liew, CFA

Two high-growth and winning energy stocks last year could double your investment in 2022.

Read more »

Energy Stocks

Suncor (TSX:SU): 1 TSX Energy Stock That’s Dirt Cheap

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) is one of my top TSX energy stock picks for 2022 and beyond, with oil prices that…

Read more »

Energy Stocks

3 Energy Stocks Could Soar More Than 100% in 2022

| Christopher Liew, CFA

If the favourable pricing environment extends or continues in 2022, three energy stocks could soar more than 100%.

Read more »

oil and gas pipeline
Energy Stocks

Why I’d Choose Enbridge (TSX:ENB) Over an Energy ETF in 2022

| Christopher Liew, CFA

One energy ETF mirrored the sector’s hot performance in 2021, but a top-tier energy stock should still deliver far better…

Read more »

Energy Stocks

2nd Wind: 3 Clean Energy Stocks Could Break Out This Year

| Christopher Liew, CFA

The breakouts of three renewable energy stocks are imminent in 2022 due to the companies' second wind.

Read more »

Energy Stocks

3 Stocks That Might Dip Following OPEC+ Supply Hike

| Adam Othman

The supply-and-demand rhythm of energy products and services was brutally disrupted during the pandemic. However, it’s quite close to achieving…

Read more »

Energy Stocks

Enbridge Stock: A Dividend Stock With a Bright Future

| Karen Thomas, MSc, CFA

With a clear plan to transition to clean energy, Enbridge stock remains one of the best dividend stocks today and…

Read more »

Energy Stocks

Why Did Suncor Energy Stock Climb 10% This Week?

| Amy Legate-Wolfe

Suncor Energy (TSX:SU)(NYSE:SU) continued climbing this week, as analysts continue to weigh in on the energy stock's performance for the…

Read more »

Energy Stocks

Why Did NuVista Energy (TSX:NVA) Stock Jump 15% on Tuesday?

| Vineet Kulkarni

While TSX energy stocks have risen 80%, this small wonder has zoomed 700% in the last 12 months.

Read more »

Energy Stocks

Passive-Income Seekers: 3 Top Canadian Energy Dividend Stocks to Buy in 2022

| Vineet Kulkarni

Looking for a generous passive income? Consider this energy dividend stocks.

Read more »

oil and gas pipeline
Energy Stocks

The 3 Best ETFs for Energy Companies in Canada

| Christopher Liew, CFA

Investors in three ETFs that track the performance of Canada’s energy sector derived gains of more than 80% in 2021.

Read more »

Energy Stocks

Why Did TransAlta Renewables Drop 10% Tuesday?

| Amy Legate-Wolfe

TransAlta Renewables (TSX:RNW) saw shares fall after announcing it will have to replace 50 of its wind turbines at its…

Read more »

Energy Stocks

Energy Investors: Prepare for a Supercycle in 2022

| Christopher Liew, CFA

Industry analysts predict a supercycle for the energy sector in 2022, and two winning stocks last year should be on…

Read more »

Energy Stocks

Why Canadian Natural Resources Stock Rallied 12% Last Week

| Vineet Kulkarni

Energy stocks look in great shape this year after having a banner year in 2021.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, January 10

| Jitendra Parashar

TSX stocks are likely to start the new week on a slightly bullish note today, as recovering metals prices point…

Read more »

Energy Stocks

Could Suncor Stock Be a Big Winner in 2022?

| Chris MacDonald

Here's why Suncor Energy (TSX:SU)(NYSE:SU) stock could be among the best investments for long-term investors in 2022.

Read more »

Energy Stocks

2 Energy Stocks That Jumped Over 13% This Week

| Amy Legate-Wolfe

These energy stocks saw major moves this week, as analysts continued to increase their target prices for both stocks.

Read more »

oil and gas pipeline
Energy Stocks

Why Enbridge (TSX:ENB) Stock Was up 21% in 2021

| Vishesh Raisinghani

Enbridge (TSX:ENB)(NYSE:ENB) stock is up 21% and is still undervalued.

Read more »

Energy Stocks

3 Top TSX Energy Stocks That Pay Great Dividends

| Robin Brown

TSX energy stocks are looking attractive for elevated dividend and capital returns in 2022. Here are three that are catching…

Read more »

Energy Stocks

Why Obsidian Energy Soared 34% This Week

| Amy Legate-Wolfe

Obsidian Energy (TSX:OBE)(NYSE:OBE) saw shares soar 34%, as the company announced updated guidance, which should lead to target price boosts.

Read more »

Energy Stocks

Why Pembina Pipeline Stock Climbed 18% in 2021

| Amy Legate-Wolfe

Pembina (TSX:PPL)(NYSE:PBA) stock is a strong option for those wanting a cheap stock with a solid dividend, even with 18%…

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Friday, January 7

| Jitendra Parashar

Fresh updates about Kazakhstan unrest could continue to spark big movements in oil prices and TSX energy stocks today.

Read more »

Energy Stocks

Suncor (TSX:SU) Stock: How High Could it Go in 2022?

| Andrew Walker

Suncor stock looks cheap right now and could deliver big gains in 2022.

Read more »

Energy Stocks

3 Renewable Energy Stocks to Buy in 2022

| Adam Othman

Renewable energy stocks become more and more attractive as we start moving more vigorously towards our net-zero goals.

Read more »

Energy Stocks

Why Fission Uranium Stock Surged 10% Yesterday

| Kay Ng

Is the Fission Uranium (TSX:FCU) stock rally sustainable? Here’s what you need to know.

Read more »

oil and gas pipeline
Energy Stocks

Why NexGen Energy Stock Surged as Much as 14% Yesterday

| Kay Ng

Is the NexGen Energy (TSX:NXE)(NYSE:NXE) stock rally sustainable? Here's what you need to know.

Read more »

Energy Stocks

Will the TSX’s Energy Sector Be a Back-to-Back Winner in ’22?

| Christopher Liew, CFA

With the projection that oil prices will continue its upward trajectory, the energy sector will likely be the top performer…

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, January 6

| Jitendra Parashar

Investors’ speculations about the Fed’s aggressive stance could continue to weigh on TSX stocks today.

Read more »

Energy Stocks

Here’s Why Energy Stocks Could ERUPT in 2022

| Ambrose O'Callaghan

Investors should gear up for higher oil and gas prices and buy top energy stocks like Suncor Energy Inc. (TSX:SU)(NYSE:SU)…

Read more »

Energy Stocks

3 Must-Buy TSX Stocks if You’re Investing in 2022

| Nicholas Dobroruka

The Canadian stock market is coming off a great year in 2021. Here are three top picks to have on…

Read more »

Energy Stocks

Why Uranium Stocks Climbed Higher on Wednesday

| Amy Legate-Wolfe

Countries continue to commit to net-zero emissions by 2050, and nuclear power may be the only way to achieve that,…

Read more »

Energy Stocks

2 Cheap Canadian Stocks to Buy in January 2021

| Andrew Walker

These cheap Canadian stocks could surge in 2022.

Read more »

Energy Stocks

Why Canadian Natural Resources Stock Zoomed 75% in 2021

| Vineet Kulkarni

Canadian Natural Resources (TSX:CNQ) stock soared 75% last year, and the rally could continue in 2022 as well.

Read more »