With the North American energy revolution in full swing, savvy investors are constantly on the lookout for ways to profit from it. In order to simplify this process, I have compiled a list of three companies who operate in different industries within the sector, so let’s take a closer look at each to determine which would fit best in your portfolio.
1. Suncor Energy Inc.: Oil Sands
Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of the largest integrated energy companies in North America. It’s focused on developing oil sands in Canada’s Athabasca basin. At today’s levels, its stock trades at 37.8 times fiscal 2015’s estimated earnings per share of $0.91 and 17.4 times fiscal 2016’s estimated earnings per share of $1.97, the latter of which is inexpensive compared with its five-year average price-to-earnings multiple of 19. In addition, the company pays a quarterly dividend of $0.28 per share, or $1.12 per share annually, giving its stock a 3.25% yield at current levels.
2. Keyera Corp.: Natural Gas
Keyera Corp. (TSX:KEY) is one of the largest independent natural gas and natural gas midstream companies in western Canada. At current levels, its stock trades at 26.8 times fiscal 2015’s estimated earnings per share of $1.59 and 22.6 times fiscal 2016’s estimated earnings per share of $1.88, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 28.3. Additionally, the company pays a monthly dividend of $0.115 per share, or $1.38 per share annually, which gives its stock a 3.2% yield at today’s levels.
3. Canyon Services Group Inc.: Fracking Services
Canyon Services Group Inc. (TSX:FRC) is one of the leading providers of hydraulic fracturing, acidizing, and remedial cementing services to the oil and natural gas industries in Canada. At today’s levels, its stock trades at 27.5 times fiscal 2016’s estimated earnings per share of $0.21, which is inexpensive compared with its five-year average price-to-earnings multiple of 110.5. In addition, the company pays a quarterly dividend of $0.075 per share, or $0.30 per share annually, giving its stock a 5.2% yield at today’s levels.
Which of these energy stocks should you buy today?
Suncor, Keyera, and Canyon Services are three of the best ways to invest in the North American energy revolution today. Foolish investors should take a closer look and strongly consider beginning to scale in to positions in one of them.
