Are you looking for great deals on the TSX this month? If you are, three stocks should be worth your while. You’ll also be glad you bought them at their prices today.
Market analysts are optimistic about energy stocks this year, if not bullish. Baytex Energy (TSX: BTE) and Enerflex (TSX: EFX) trade below $10 and have bright business outlooks. Propel Holdings (TSX: PRL) has outperformed the big banks in 2023. The growth stock also stormed out of the gate to start 2024 and could soar higher when interest rate cuts begin.
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Oil & gas exploration & production
Baytex Energy develops and produces crude oil and natural gas in the Western Canadian Sedimentary Basin and Eagle Ford in the United States. At $4.14 per share, this future top-tier North American oil producer pays a decent 2.17% dividend. Also, the stock had a 380.21% return in three years.
Last month, the $3.5 billion company announced a board-approved exploration and development expenditures budget of $1.2 to $1.3 billion for 2024. Baytex could generate an average annual production of 150,000 to 156,000 barrels of oil equivalent per day.
Its president and chief executive officer, Eric T. Greager, said the budget and five-year outlook demonstrates the strength of the diversified oil-weighted portfolio. “Our business is underpinned by strong drilling economics and greater than 10 years inventory across our portfolio, and our commitment to shareholder returns is expected to drive meaningful per-share growth in production and free cash flow,” said Greager.
Oil & gas equipment & services
Enerflex sees strong demand across its business units and geographic regions in which it operates in 2024. The $794.4 million company provides energy infrastructure and energy transition solutions globally. It partners with large and small operators in 23 countries.
This energy stock also pays dividends. At $6.41 per share, the yield is a modest but safe 1.56% (15.32% payout ratio). Enerflex’s focus this year is to generate free cash flow and improve its financial flexibility further. Management said the operating results will be underpinned by highly contracted energy infrastructure product lines and recurring revenues from after-market services.
Moreover, most of the $1.5 billion backlog as of December 31, 2023, should convert into revenues in the next 12 months. Because of robust long-term fundamentals for natural gas, providing meaningful shareholder returns and a sustainable dividend are top priorities.
Hot fintech
Propel Holdings’s incredible run last year continues, as evidenced by its 15.57% year-to-date gain. Also, at $14.99 per share, the trailing one-year price return is 117.79%. The $514.6 million financial technology company boasts an artificial intelligence-powered online lending platform and caters to underserved consumers or borrowers.
With the strong revenue (+39%) and earnings (+47%) growth in the third quarter of 2023 versus the third quarter of 2022, expect the stock to fly higher. Besides the solid financial position, Propel is confident about its profitable growth prospects and cash flow generation. An added caveat is future dividend growth (yield increased to 4.9% in September).
Common objectives
Baytex Energy, Enerflex, and Propel have common objectives for shareholders: meaningful returns and generating strong free cash flow. All three are well positioned to reward current and prospective investors.
