Motley Fool Premium
  1. Category
    2. /
  2. Investing
    3. /
  3. Energy Stocks
    4. /

Energy Stocks

What are energy stocks? 

Energy stocks represent partial ownership in companies that supply electricity and fuel for the global economy. The energy sector in Canada is vast, comprising a large portion of the TSX. Energy stocks include: 

  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies 

(Renewable energy stocks are part of the TSX’s utilities sector.)

How can you pick energy stocks?

1. Look for companies with a promising future 

It’s no surprise that the energy sector is under intense scrutiny. With climate change at the front of many people’s minds (from governments to investors), energy companies, old and new, are constantly adapting to a new world. Many people want cleaner energy. And it’s the energy sector’s challenge to make clean energy available — and profitable, too. 

For that reason, investors will do well to look for innovative companies that are actively solving contemporary energy problems. Though we’re not suggesting investors ignore bigger companies in oil or natural gas, we are suggesting you keep an eye on the future as you’re picking your energy stocks. 

Given the direction the world is going, ask yourself: who will be around in 20, 30, or even 40 years? That’s one of the biggest questions you can answer as an energy stock investor. 

2. Analyze an energy company’s financial standing

The future of an energy company depends in part on how it’s handling its finances now. Given that prices within the energy sector are extremely volatile — just look at how the price of gas fluctuates — you want to be sure an energy company has the financial strength to withstand a recession. Some factors you may want to analyze include: 

  • Strong balance sheet: the company should have lots of liquid cash on hand, as well as a capacity to borrow (if needed). It should also have low amounts of debt and a high investment grade. 
  • Low production costs: the company shouldn’t be spending the majority of its revenue on producing energy. The company should have a stable revenue with minimal exposure to price fluctuations. 
  • Conservative dividend payout ratio: though everyone likes to make money on dividends, if a company dishes too much out, it could end up cutting or reducing its dividend program during hard times. 

3. Check here for our writer’s picks

Our writers are constantly analyzing the energy sector, as they look for Canadian energy stocks that are growing, as well as those that are under- or over- valued. Keep checking back here to see which stocks they recommend — and which they don’t. 

[KevelPitch/]

In addition, you should read up on our Renewable Energy Stocks list.

Check back here for the most up to date information about energy stocks.

Recent Energy Stocks News

Dividend Stocks

Got $110 GST Refund? Begin Investing With Top 3 Stocks Under $50

| Puja Tayal

Have you received your GST refund of up to $114? This is the time to start investing in stocks and…

Read more »

Dividend Stocks

Income-Seeking Investors: Top Canadian Dividend Stocks to Buy in July 2021

| Vineet Kulkarni

Here are three top Canadian dividend stocks that offer handsome dividends and stability for long-term investors.

Read more »

Energy Stocks

Energy Stocks: 2 Picks That Could Double Again This Year

| Daniel Da Costa

These two Canadian energy stocks have both gained upward of 100% already in 2021 and have the potential to double…

Read more »

Dividend Stocks

2 Great Stocks You Can Purchase With $50

| Christopher Liew, CFA

An investment as little as $50 can compound and grow substantially over time. The Diversified Royalty stock and Canacol Energy…

Read more »

Dividend Stocks

5 of the Best TSX Dividend Stocks to Buy Under $100 in July 2021

| Sneha Nahata

Investing in dividend stocks brings a regular inflow of cash.

Read more »

Energy Stocks

Energy Stock Crisis: Too Early to Celebrate?

| Amy Legate-Wolfe

If Motley Fool investors are interested in Suncor (TSX:SU)(NYSE:SU) stock or other energy stocks, you need to read this first.

Read more »

Dividend Stocks

5 Top TSX Stocks to Diversify Your Portfolio in Q3 2021

| Jitendra Parashar

Here are five top Canadian stocks that you can buy to diversify your stock portfolio this quarter.

Read more »

Energy Stocks

2 Extremely Undervalued Energy Stocks to Buy Today

| Chris MacDonald

Here's why AltaGas (TSX:ALA) and Suncor Energy (TSX:SU)(NYSE:SU) remain two top energy stocks investors should consider right now.

Read more »

Energy Stocks

4 Top Canadian Stocks to Buy in July

| Rajiv Nanjapla

Amid favorable industry trends, these four Canadian stocks could continue their uptrend.

Read more »

Dividend Stocks

Why Did Bombardier (TSX:BBD.B) Stock Jump 7.5% in a Day?

| Puja Tayal

Bombardier (TSX:BBD.B) stock continued its year-long rally and jumped 7.5% yesterday. What led to this rally, and how long will it…

Read more »

Dividend Stocks

Cineplex (TSX:CGX): Will This Stock Skyrocket After Lockdowns Are Lifted?

| Adam Othman

Cineplex stock could be a stock worth keeping on your radar as the movie theatre industry could see a revival…

Read more »

Energy Stocks

Buy These 4 Undervalued Stocks to Earn Superior Returns

| Rajiv Nanjapla

Given the favourable industry trends and their growth initiatives, these four companies could deliver superior returns over the next two…

Read more »

Energy Stocks

3 Top TSX Energy Stocks to Buy on a Dip Today

| Jitendra Parashar

Canadian energy stocks, including Crescent Point Energy (TSX:CPG)(NYSE:CPG), Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE), and Suncor Energy (TSX:SU)(NYSE:SU), fell sharply today amid…

Read more »

Energy Stocks

3 Top Energy Stocks to Buy in July

| Karen Thomas, MSc, CFA

Top energy stocks like Cenovus, Canadian Natural Resources, and Peyto are stocks to buy as oil and gas fundamentals continue…

Read more »

Energy Stocks

Top Pick Tuesday: 2 TSX Stocks to Buy Now and Hold Forever

| Joey Frenette

Cenovus Energy (TSX:CVE)(NYSE:CVE) and another cheap TSX stock that could help investors beat the Canadian stock market in the second…

Read more »

Energy Stocks

The 3 Best Canadian Stocks to Buy Amid the Market Rally

| Vineet Kulkarni

Here are three top Canadian stocks to buy in the ongoing market rally for handsome long-term gains.

Read more »

Energy Stocks

5 Under-$50 TSX Stocks to Buy With $1,000 Right Now

| Sneha Nahata

There are plenty of high-quality stocks that are trading cheap and are well within reach.

Read more »

Energy Stocks

Energy Stock Rally: 3 Stocks That Could Climb Higher

| Kay Ng

These energy stocks are benefiting from higher energy prices that are supported by economic re-openings!

Read more »

Energy Stocks

Forget Tesla: Here’s 1 Top Canadian EV Pick to Buy Right Now

| Chris MacDonald

Here's why Parkland Corporation (TSX:PKI) could be a sneaky, indirect EV pick for investors looking for an under-the-radar Canadian pick.

Read more »

Bank Stocks

4 of the Best TSX Stocks to Buy This Week

| Jitendra Parashar

Here are four of the best TSX stocks that investors can add to their portfolios this week.

Read more »

analyze data
Dividend Stocks

2 TSX Stocks That Can Help You Retire Early

| Adam Othman

The Bank of Nova Scotia stock and Keyera Corp. stock could be ideal assets to help you achieve early retirement…

Read more »

Energy Stocks

Should You Buy Suncor Stock (TSX:SU) Right Now?

| Andrew Walker

Suncor stock is up more than 35% this year. Are more big gains on the way?

Read more »

Stocks for Beginners

Top 3 TSX Dividend Stocks to Buy This Week

| Jitendra Parashar

Here are three of the best Canadian dividend stocks that long-term investors can buy today.

Read more »

Energy Stocks

3 Top TSX Stocks to Buy With $10 in July 2021

| Adam Othman

It's never too early to start investing and buying stocks, even if you just have a few dollars to spare.…

Read more »

Dividend Stocks

3 Deeply Undervalued Stocks to Buy in July

| Stephanie Bedard-Chateauneuf, MBA

Teck Resources (TSX:TECK.B)(NYSE:TECK), National Bank of Canada (TSX:NA), and Power Corporation (TSX:POW) are three undervalued stocks.

Read more »

Car, EV, electric vehicle
Energy Stocks

Forget Tesla: 2 Top Canadian EV Plays to Buy Right Now

| Chris MacDonald

Here's why Magna Corporation (TSX:MG)(NYSE:MGA) and Parkland Corporation (TSX:PKI) are on my watch list as interesting EV plays right now.

Read more »

Dividend Stocks

Canadians: 1 Top Passive-Income Stock for You

| Joey Frenette

TC Energy (TSX:TRP)(NYSE:TRP) and its incredibly bountiful dividend make the passive-income stock a must-buy for value-seeking Canadians.

Read more »

Dividend Stocks

Forget Meme Stocks: 2 Top Dividend Stocks to Buy Instead

| Adam Othman

Enbridge stock and CIBC stock could be far better alternatives to meme stocks for your portfolio for reliable long-term wealth…

Read more »

Energy Stocks

3 Safe Canadian Stocks With Above 5% Dividend Yields

| Rajiv Nanjapla

Along with passive income, these three Canadian stocks provide stability to your portfolio.

Read more »

Dividend Stocks

2 Top Energy Sector Picks to Buy Today

| Adam Othman

Suncor Energy stock and Cenovus Energy stock could be ideal stock picks for investors bullish on the energy sector.

Read more »

Dividend Stocks

5 Top Canadian Stocks to Buy and Hold for 5 Years

| Kay Ng

Don't know where to invest for income or growth? Here are some top Canadian stocks you must check out in…

Read more »

Energy Stocks

Bigger Is Better: 3 Top TSX Mega-Cap Stocks to Buy Today

| Chris MacDonald

These three top mega-cap stocks are among the best Canada has to offer for investors seeking stable long-term growth.

Read more »

Energy Stocks

4 of the Best TSX Stocks to Buy in July and Hold Forever

| Nicholas Dobroruka

TSX stocks are soaring but I’m still a buyer. Here are four top Canadian companies that should be on your…

Read more »

Dividend Stocks

2 Best Value Stocks to Buy in Canada Now

| Christopher Liew, CFA

The Cogeco Communications stock and Suncor Energy stock should be in the radars of value investors. Both dividend payers are…

Read more »

Energy Stocks

The 3 Top TSX Energy Stocks to Buy in July 2021

| Sneha Nahata

Energy companies could continue to be in the limelight and outpace the benchmark index.

Read more »

Dividend Stocks

3 Growth Stocks That Could Shoot Up

| Christopher Liew, CFA

Growth investors should be excited with the buying opportunities on the TSX today. Corus Entertainment stock, Imperial Oil stock, and…

Read more »

Energy Stocks

1 Hot TSX Stock That Could Double This Year!

| Amy Legate-Wolfe

If you're looking for a stock that could double this year alone, you'll want to look into the uranium industry…

Read more »

Energy Stocks

3 Top Canadian Stocks to Buy in July

| Stephanie Bedard-Chateauneuf, MBA

Trulieve Cannabis (TSXV:TRUL), CloudMD Software & Service (TSXV:DOC), and Enbridge (TSX:ENB)(NYSE:ENB) are three top Canadian stocks to buy in July.

Read more »

Energy Stocks

Got $300? 3 No-Brainer Canadian Stocks to Buy Right Now

| Rajiv Nanjapla

These four Canadian stocks could continue to their uptrend, given the favourable industry trends and their growth initiatives.

Read more »

Energy Stocks

Why AltaGas Stock Remains a Top Pick Right Now

| Chris MacDonald

Here's why long-term investors seeking a solid energy pick might want to consider AltaGas (TSX:ALA) today.

Read more »