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

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.

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

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