The TSX’s energy sector continues to rule as we enter the last two months of 2021. Many of its constituents are the top performers year to date. Baytex Energy (TSX:BTE)(NYSE:BTE) and NuVista Energy (TSX:NVA) have risen meteorically by more than 870% from last year.
In the industrial sector, Bombardier (TSX:BBD.B) is the high flyer with its 500% gain in one year. Barring any major disruptions, the share prices of these three growth stocks could double this November.
Baytex Energy is positioning for the future. This $2.34 billion oil and gas corporation aims to become a top-tier oil producer in North America. Management believes the world-class asset base, growth profile, and free cash flow potential set the company apart from industry peers.
The five resource plays of Baytex, led by Eagle Ford in Texas, are high return projects in North America. Strong operational performance was the highlight in the first half of 2021. Baytex’s top line (petroleum and gas sales) rose 69% to $827 million versus the same period in 2020. Its net income was $1 million — a turnaround from the $2.63 million net loss.
Management maintains a positive outlook from 2022 to 2025. It expects to generate more than $1 billion cumulative free cash flow within the said period. On the TSX, at $4.51 per share, current investors enjoy a 501.45% year-to-date gain.
Focus on economic value
NuVista is the third in the top 100 stocks as of October 29, 2021, after Baytex Energy and Greenfield Exploration from TSX Venture exchange. This energy stock trades at $6.13 per share, representing a 552.13% year-to-date gain. Also, the trailing one-year price return is 706.58%.
The $1.32 billion oil and natural gas company is present in the condensate-rich Montney formation in Wapiti and Alberta Deep Basin, a pipestone area. According to management, both operations are scalable. The $1.32 billion oil and natural gas company has recovered from its $869.1 million net loss in the first half of 2020.
In the six months ended June 30, 2021, NuVista reported $4.44 million in net income. Its total sales also grew 74% year over year. The company likewise reduced its net debt by $77 million during the same period. Management is confident its capital plans would maximize value.
Liquidity-wise, NuVista has an available credit facility of $440 million and a $30 million unsecured letter of credit (LC) from the Export Development Canada under the Account Performance Security Guarantee (APSG).
Strong business momentum
Bombardier soared exponentially from last year. As of October 29, 2021, the industrial stock trades at $1.99 per share, or 552% higher than a year ago. Current investors are up 314.58% year to date. A $5,000 investment on year-end 2020 would be worth $32,622.96 today.
The $4.88 billion company manufactures business aircraft and has a global network of service centres. According to management, Bombardier’s Learjet 75 Liberty, Challenger (350, 650, 3500), and Global (5500, 6500, 7500, 8000) models are the products of a strong heritage and visionary innovation.
Bombardier regained business momentum in Q2 2021 following a 25% year-over-year revenue growth and net income of US$139 million. Because of solid execution, the company expects to end the year with $5.8 billion in revenues and $575 million in adjusted EBITDA.
A $1,000 position in TSX’s top performers could double if the TSX’s rally continues in November.