Peter Ashton is vice-president of client services at Recognia Inc.
What are we looking for?
For the year-to-date, the best performing sectors in the Canadian market have been utilities, health care and energy. Today, we will focus on the TSX oil and gas sector to look for strong growth prospects.
We will be using Recognia Strategy Builder to search for oil and gas stocks trading on the TSX that have shown price leadership in the past 12 months and have strong prospects for growth in the coming year.
We begin by setting a minimum market capitalization threshold of $2-billion to focus on larger, more established Canadian oil and gas producers in our screen. Next, we will look for companies that have shown price leadership by establishing a new 52-week high in the past 30 days.
Finally, in order to focus on growth prospects, we will look for stocks with strong projected growth in earnings per share. Our screen will consider companies with a projected EPS growth rate of 10 per cent or more for the coming year.
More about Recognia
Recognia is a global leader in quantitative and technical analysis. It is accessible by more than 20 million investors and traders worldwide through leading retail online brokers. Recognia covers 85 exchanges worldwide and analyzes 65,000 instruments daily including stocks, indexes, ETFs, currencies and futures.
What did we find?
Crescent Point Energy Corp. focuses on oil and gas production in Saskatchewan and southern Alberta. The company ranks No. 1 on our screen and made a new 52-week high on May 22.
Canadian Natural Resources Ltd. is one of the largest oil and gas producers in Canada with significant exposure to the oil sands. With a market cap of $48-billion, it has the highest market cap on our screen.
ARC Resources Ltd. has the highest projected EPS growth rate in our screen, at 165.6 per cent.
The investment ideas presented here are for information only. Investors should conduct further research before investing.
Energy stocks with strong growth potential
- Crescent Point Energy Corp$19.69-0.90(-4.37%)
- Canadian Natural Resources Ltd$35.90-0.76(-2.07%)
- ARC Resources Ltd$20.39-0.45(-2.16%)
- Cenovus Energy Inc$18.93-0.35(-1.82%)
- Altagas Ltd$29.43-0.61(-2.03%)
- Husky Energy Inc$15.25+0.06(+0.39%)
- Encana Corporation$8.32-0.98(-10.54%)
- Updated May 3 3:26 PM EDT. Delayed by at least 15 minutes.