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.

Top Articles

Energy Stocks

2 Top TSX Energy Stocks to Buy in January 2023

| Robin Brown

Here are two top TSX energy stocks that had a great year in 2022 and could be primed for strong…

Read more »

An engineer works at a hydroelectric power station, which creates renewable energy.
Energy Stocks

Why Algonquin Power & Utilities Stock Slid 49.3% Last Year

| Tony Dong, MSc, CETF®

Here's why shares of AQN fell hard last year.

Read more »

Energy Stocks

Is CNQ Stock a Buy in January 2023?

| Andrew Walker

CNQ stock is down from the 2022 high. Is it time to buy?

Read more »

Energy Stocks

Worried About a Recession? 3 TSX Giants to Outpace the Market

| Aditya Raghunath

Recession-resistant TSX stocks such as Fortis and Hydro One are well poised to deliver outsized returns to shareholders in 2023.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

The Best Energy Dividend Stock for a Decade of Passive Income

| Aditya Raghunath

Canadian Natural Resources is a top TSX stock that has delivered stellar gains to long-term investors. Let's see why CNQ…

Read more »

oil and gas pipeline
Energy Stocks

Enbridge Is a High-Yielding Canadian Dividend Stock to Buy Now and Own Forever

| Adam Othman

Consider adding Enbridge stock to your portfolio, as it still trades below its all-time highs to capture its high-yielding dividend…

Read more »

Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Energy Stocks

2 Energy Stocks You Can Buy Right Now to Play The EV Boom

| Adam Othman

Add these two Canadian renewable energy stocks to capitalize on the growing EV popularity.

Read more »

Recent Energy Stocks News

Dividend Stocks

Got $1,000? Buy These 3 Under-$30 Dividend Stocks

| Rajiv Nanjapla

Amid the rising volatility in the equity markets, investors could strengthen their portfolios by adding high-quality dividend stocks.

Read more »

Tech Stocks

This Dirt-Cheap Canadian EV Stock Is a Screaming Bargain

| Joey Frenette

NFI Group (TSX:NFI) is one Canadian EV stock that trades like a dirt-cheap bargain and it could be in for…

Read more »

Dividend Stocks

2 of the Best Canadian Dividend Stocks to Add to Your TFSA This Summer

| Stephanie Bedard-Chateauneuf, MBA

Bank of Montreal (TSX:BMO)(NYSE:BMO) and Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) are two of the best dividend stocks to add to your…

Read more »

Dividend Stocks

Canadian Investors: 2 Top Stocks to Buy This Summer

| Adam Othman

Brookfield Asset Management stock and Canadian National Railway stock are attractive stock picks that you could add to your portfolio…

Read more »

Energy Stocks

Could the Market Rally Continue in Q3 2021?

| Jitendra Parashar

These reasons could be hurting investors’ sentiments lately -- triggering a market-wide selloff. However, I still expect the broader market…

Read more »

Dividend Stocks

Oil Price Falls: What Should You Do?

| Puja Tayal

The energy and finance-heavy TSX Composite Index dipped 1.3% as oil prices fell due to supply disputes. What does this…

Read more »

Energy Stocks

Green Energy: 3 Top Canadian Stocks to Buy Now

| Daniel Da Costa

Renewable energy is one of the best industries to invest in for growth. Here are three of the top green…

Read more »

Dividend Stocks

Here’s the Max Amount of CPP Pension You Can Get in 2021

| Christopher Liew, CFA

CPP users can receive the maximum payout if they contributed enough to the program. However, if you expect to receive…

Read more »

Energy Stocks

3 Under-$10 Canadian Energy Stocks to Buy Today

| Jitendra Parashar

Despite the ongoing short-term correction, a continued recovery in oil prices and strong energy demand make these three energy stocks…

Read more »

Dividend Stocks

What Roiled the Global Energy Markets This Week?

| Vineet Kulkarni

Global energy markets shook this week after OPEC+ talks collapsed, which could cause oil prices to change course in the…

Read more »

Dividend Stocks

3 Defensive Stocks That Could Strengthen Your Portfolio

| Rajiv Nanjapla

Given their recession-proof business models and steady cash flows, these three defensive stocks could shield your investments from market fluctuations.

Read more »

Dividend Stocks

The 3 Smartest Stocks to Buy Today

| Christopher Liew, CFA

Canadians have three excellent investment choices today. The smartest buys are Goodfood Market stock, Jamieson Wellness stock, and Imperial Oil.…

Read more »

Energy Stocks

Got $500? 3 Under $30 TSX Stocks to Buy Right Now

| Aditya Raghunath

Stocks such as Air Canada, Suncor, and WELL Health might help you derive outsized gains in the next year.

Read more »

Energy Stocks

Why This TSX Stock Just Popped +9% Yesterday

| Kay Ng

Before you think about investing in small-cap stocks, check out this example first. If you invest in the space, expect…

Read more »

Dividend Stocks

1 Top Stock to Play the Energy Sector Rebound

| Andrew Walker

Investors can still find good deals in the energy sector. Here's why this top stock looks undervalued.

Read more »

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 »