Finding top energy stocks to invest in can be quite the task. Indeed, given how commodities prices have risen of late, this sector is red hot. Accordingly, those looking for dirt-cheap options in the energy sector may have a more difficult time right now.
That said, in every bull market, there are companies offering excellent value. In this article, I’m going to highlight two Canadian energy stocks that fit this profile.
Let’s take a look.
Top Canadian energy stocks: Arc Resources
One of the energy stocks I’ve had my eye on for some time is Arc Resources (TSX:ARX). This company’s stock price has been relatively volatile of late. That said, fortunately for investors, most of the volatility has been to the upside.
Trading near its 52-week high, Arc has been one of the better-performing energy stocks of late. Indeed, much of this has to do with Arc’s relatively levered balance sheet. As one of the poorest performers during the recent commodity price crash we saw last year, Arc stock has also rebounded sharply.
Still far off from its previous highs during the commodity surges this past decade, Arc stock has a tremendous amount of room to run.
This natural gas player has benefited greatly from improved energy prices of late. With many economists forecasting a cold winter and the potential for further price increases in the natural gas space, Arc is well positioned to take advantage of this catalyst. The company has a dividend yield of 2.3% at the time of writing.
Another natural gas and oil player, Tourmaline Oil (TSX:TOU) has more than doubled this year alone. This is one of the best-performing energy stocks on the market right now. Like Arc, I see more upside on the horizon for this name.
Indeed, one of the best performers since the onset of the pandemic, TOU stock has been a five-bagger for patient investors who’d bought the bottom. Whether similar performance can be seen in the years to come remains to be seen. However, this is a company with tremendous sensitivity to energy prices that could go on a nice run.
One of the differentiating factors with Tourmaline I focus on is the company’s dividend. This is a stock with a yield of 1.5% right now. However, the company recently announced a special dividend of $0.75 for each share payable next month. Investors bullish on commodity prices right now may want to take a look at Tourmaline as one of the top energy stocks to consider right now.