The North American energy revolution is in full swing, and as intelligent investors we must constantly be looking for ways to profit from it. I have scoured the market and found three companies from three different industries that are contributing to the revolution, and whose stocks are trading at attractive forward valuations, so let’s take a closer look at each to determine if you should consider buying one of them today.
1. ShawCor Ltd.: Pipeline Coatings
ShawCor Ltd. (TSX:SCL) is one of the leading providers of technology-based products and services for the pipeline and pipe services markets, and it is the world’s largest provider of advanced pipeline coatings. At today’s levels, its stock trades at 18.8 times fiscal 2015’s estimated earnings per share of $1.83 and 13.3 times fiscal 2016’s estimated earnings per share of $2.58, both of which are inexpensive compared with the industry average price-to-earnings multiple of 19.4. In addition, the company pays a quarterly dividend of $0.15 per share, or $0.60 per share annually, giving its stock a 1.75% yield.
2. Total Energy Services Inc.: Oilfield Equipment & Services
Total Energy Services Inc. (TSX: TOT) is one of the largest providers of oilfield equipment and services in North America. At current levels, its stock trades at 23.8 times fiscal 2015’s estimated earnings per share of $0.63 and 14.3 times fiscal 2016’s estimated earnings per share of $1.05, the latter of which is inexpensive compared with the industry average price-to-earnings multiple of 19.4. The company also pays a quarterly dividend of $0.06 per share, or $0.24 per share annually, which gives its stock a 1.6% yield.
3. TransCanada Corporation: Pipelines & Storage Facilities
TransCanada Corporation (TSX: TRP)(NYSE: TRP) is one of North America’s leading operators of natural gas pipelines and storage facilities. At today’s levels, its stock trades at 21.1 times fiscal 2015’s estimated earnings per share of $2.46 and 19.6 times fiscal 2016’s estimated earnings per share of $2.65, both of which are inexpensive compared with the industry average price-to-earnings multiple of 22.1. In addition, the company pays a quarterly dividend of $0.52 per share, or $2.08 per share annually, giving its stock a 4% yield.
Which of these energy stocks would fit best in your portfolio?
ShawCor, Total Energy Services, and TransCanada are three of the best ways to invest in the North American energy revolution today. All Foolish investors should take a closer look and consider establishing positions in one of them.
