3 Super Energy Stocks That Could Double in a Year

Top energy stocks like Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) can still provide big capital growth over the next year.

| More on:
Group of industrial workers in a refinery - oil processing equipment and machinery

Image source: Getty Images

Canada’s energy sector has been on fire in 2021. Oil and gas prices have soared on the back of lower-than-expected supply and improved demand. The spike in demand has been powered by the ongoing global economic rebound. Investors may be eager to take profits, but energy stocks still have room to grow in this environment. Today, I want to look at three energy equities that could provide big returns over the next year. Let’s dive in.

This top energy stock still offers nice value

Suncor Energy (TSX:SU)(NYSE:SU) is one of the largest energy stocks by market cap on the TSX. The company specializes in the production of synthetic crude from oil sands. Shares of this energy stock have increased 50% in 2021 as of close on November 16. The stock is up 61% year over year. However, it has still failed to recover to its pre-pandemic levels. That can change in 2022.

The company released its third-quarter 2021 results on October 27. I’d suggested that investors should scoop up this energy stock after its Q2 2021 earnings release. In Q3 2021, Suncor posted funds from operations (FFO) of $2.64 billion, or $1.79 per common share — up from $1.16 billion, or $0.76 per common share, in the prior year. Moreover, net earnings rose to $877 million, or $0.59 per common share, over a net loss of $12 million, or $0.01 per common share, in Q3 2020.

This energy stock is still trading in favourable value territory in comparison to its industry peers. It last doubled its quarterly dividend to pre-pandemic levels at $0.42 per share. That represents a strong 5.2% yield.

Soaring oil and gas prices are powering this super stock

Imperial Oil (TSX:IMO)(NYSE:IMO) is the second-largest integrated oil company in Canada. Shares of this energy stock have surged 81% in the year-to-date period. The stock is up 98% year over year. That means Imperial Oil has nearly doubled its value on the back of these bullish conditions.

I’d suggested that investors scoop up this energy stock in late October. In the third quarter of 2021, Imperial Oil saw net income soar to $908 million compared to a paltry $3 million in Q3 2020. It hit $1.66 billion for the first nine months of 2021 compared to a net loss of $711 million in the prior year-to-date period.

Shares of this energy stock are still trading in attractive value territory over its competitors. It offers a quarterly dividend of $0.27 per share. That represents a 2.4% yield.

Here’s another energy stock I’d snag in this environment

Cenovus Energy (TSX:CVE)(NYSE:CVE) is the third and final super energy stock I’d recommend snatching up right now. This energy stock has shot up 96% in 2021 as of close on November 16. Its shares have soared 153% in the year-over-year period.

In Q3 2021, Cenovus saw cash from operating activities increase 192% year over year to $2.13 billion. Meanwhile, adjusted funds flow jumped 475% to $2.34 billion. Total upstream production nearly doubled to 804,800 barrels of oil per day (BOE/d).

This energy stock is also trading in solid value territory, despite its soaring value over the past year. Cenovus announced a quarterly dividend increase to $0.035 per share. This represents a modest 0.9% yield.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Energy Stocks

Oil pumps against sunset
Energy Stocks

All Is “Well”: 2 Energy Services Stocks With Market-Spanking Gains

Two energy stocks in the oil & gas equipment & services industry are profitable options in 2022 owing to their…

Read more »

Utility, wind power
Energy Stocks

Missed Out on Canadian Energy Stocks? My Best Renewable Energy Stocks to Buy and Hold

Renewable energy stocks could be a good area to shop for value. The sector also has long-term growth ahead.

Read more »

sale discount best price
Energy Stocks

Down 30% From the Top, These TSX Stocks Are Flat-Out Deals Right Now

Not all beaten-down TSX stocks are a buy right now. Here are some that offer value.

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, November 24

TSX stocks might remain choppy with an upward bias today, as the U.S. markets remain shut for Thanksgiving.

Read more »

Oil pumps against sunset
Energy Stocks

Suncor Energy Stock up 43%: Is it Time to Sell?

Suncor Energy (TSX:SU) stock is up 43% and trading closer to its 52-week high. Is it time to sell or…

Read more »

money cash dividends
Energy Stocks

2 TSX Energy Stocks to Buy for Fast-Growing Passive Income

TSX energy stocks are gushing spare cash and shareholders are set to be rewarded. Here are two top stocks for…

Read more »

Oil pumps against sunset
Energy Stocks

You Can Still Ride the Wave of These 2 Red-Hot Momentum Stocks

Two energy stocks with strong momentums in 2022 have delivered more than 60% year-to-date gains already.

Read more »

Gas pipelines
Energy Stocks

3 Leading Oil Stocks to Buy in 2022 and Beyond

Canadian Natural Resources Ltd. (TSX:CNQ) is one of three oil stocks I’m looking to snatch up at a discount for…

Read more »