Member Login
  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: 

  • Electric utility companies
  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies
  • Renewable energy companies
  • Solar energy companies 

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 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. 

To learn more about Energy Stocks, take a look at our Guide to Energy Stocks for all the details.

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

Top Articles

oil tank at night
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

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

Read more »

energy industry
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 »

Electricity high voltage pole and sky
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 »

Growing plant shoots on coins
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 »

Electric car being charged
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

Oil pumps against sunset
Energy Stocks

How Would a Price Cap on Russian Oil Impact Canadian Energy Stocks?  

| Puja Tayal

Canadian energy stocks surged in the last three days, as G7 countries proposed a plan to impose a price cap…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 Energy Stocks (With Dividends) to Buy Amid the Market Correction

| Jitendra Parashar

These dividend-yielding energy stocks look attractive to buy for the long term after their recent dip.

Read more »

energy oil gas
Energy Stocks

2 Energy Companies to Buy When the Sector Hits Rock Bottom

| Adam Othman

Multiple factors, including the TSX decline, are contributing to the current slump in the energy sector.

Read more »

think thought consider
Energy Stocks

Energy Stocks Dip: To Buy or Not to Buy?

| Kay Ng

Most energy stocks are risky investments, because of their unpredictable profitability. Investors should tread carefully.

Read more »

Gas pipelines
Energy Stocks

2 Energy Stocks I’d Buy for Passive Income and Turnaround Upside

| Joey Frenette

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) and another top TSX energy stock could bounce back, as oil prices find their footing.

Read more »

data analyze research
Energy Stocks

TSX Stock Picks With Huge Potential

| Amy Legate-Wolfe

If you want a TSX stock that's bound for even more strong growth, these three are top picks by analysts.

Read more »

oil and natural gas
Energy Stocks

Can Cenovus Stock Outperform in H2 2022?

| Chris MacDonald

Is now the time for investors in Cenovus (TSX:CVE)(NYSE:CVE) stock to buy more, or wait out this volatility right now?

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Energy Stocks

NexGen Energy: The Top Uranium Stock Set to Double in 2022

| Amy Legate-Wolfe

NexGen (TSX:NXE)(NYSE:NXE) stock is one of the top uranium stocks to consider right now with the potential to double in…

Read more »

energy industry
Energy Stocks

Why Suncor Energy (TSX:SU) Stock Has Declined 20% in June

| Vineet Kulkarni

Will Suncor Energy stock climb back up to $50 again?

Read more »

Dice engraved with the words buy and sell
Dividend Stocks

Is it Time to Sell Oil Stocks?

| Adam Othman

The energy sector pullback has rattled Canadian investors because of its impact on the broader economy, but it might be…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

Oil Stocks in Canada: Are They Still Good Buys?

| Christopher Liew, CFA

Oil stocks experienced a rout last week, but the underlying supply-demand imbalance makes them strong buys, nonetheless.

Read more »

Money growing in soil , Business success concept.
Energy Stocks

3 Growth Stocks up +30% in 2022

| Amy Legate-Wolfe

These three growth stocks are up over 30% in 2022 alone but have come down in the last few weeks…

Read more »

Oil pumps against sunset
Energy Stocks

2 Energy Stocks That Jumped Over 60% This Year

| Adam Othman

Consider investing in these two energy stocks amid the recent pullback after putting up stellar gains earlier this year.

Read more »

value for money
Energy Stocks

Got $500? 2 Insanely Cheap Energy Stocks Yielding 5.5%

| Puja Tayal

While oil stocks are riding bulls, two energy stocks are sold out. This is a good time for dividend lovers…

Read more »

Oil pipes in an oil field
Energy Stocks

2 TSX Energy Stocks to Buy Before They Heat Up Again

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) and another high-yielding TSX energy stock seem like great buys after recent weakness.

Read more »

data analyze research
Energy Stocks

Market Correction: 2 Dividend Stocks to Hold for Dear Life

| Adam Othman

These two top defensive dividend stocks could provide you with a degree of protection through the current market downturn.

Read more »

A meter measures energy use.
Energy Stocks

Energy Investing: What Every Canadian Needs to Know

| Jim Gillies (TMFCanuck)

Here’s what savvy Canadian investors need to know about energy investing today, straight from Motley Fool Hidden Gems advisor Jim…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

Gold vs. Oil: Which Commodity Is a Stronger Bet for Inflation?

| Adam Othman

Increasing commodity prices make gold stocks and oil stocks attractive assets to own, but oil stocks might be the better…

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, June 23

| Jitendra Parashar

The U.S. Federal Reserve chair Jerome Powell’s testimony before Congress could continue to keep TSX stocks highly volatile today.

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Why Tourmaline Oil Stock Still Looks Strong

| Vineet Kulkarni

Tourmaline Oil has been on a dividend-hike streak this year.

Read more »

oil and natural gas
Energy Stocks

3 Cheap TSX Energy Stocks With Fast-Growing Dividends

| Robin Brown

TSX energy stocks are down 10% in the past week. Here are three cheap oil stocks I'd pick up for…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

From a Big Bank: Suncor (TSX:SU) Is the Best-in-Class Operator

| Christopher Liew, CFA

A big bank recommends a buy rating for an oil bellwether because of its strong free cash flows and restored…

Read more »

TSX Today
Energy Stocks

TSX Today: Why Stocks Could Fall on Wednesday, June 22

| Jitendra Parashar

Renewed selling pressure in global stock markets and a sharp drop in commodity prices could take TSX stocks lower at…

Read more »

Oil pumps against sunset
Energy Stocks

Suncor Energy (TSX:SU): Is the Stock Now Oversold?

| Andrew Walker

Suncor stock looks cheap today. Here's why.

Read more »

Filling up at the gas pumps.
Energy Stocks

2 Stocks to Buy as Gasoline Hits Record Highs

| Adam Othman

Energy companies are raking in massive profits, as gasoline prices hit record highs, and these two TSX stocks could be…

Read more »

Gas pipelines
Energy Stocks

Why Enbridge Stock Just Posted its Biggest Weekly Loss in Over 2 Years

| Jitendra Parashar

After the recent energy sector-wide selloff has driven ENB stock down, its dividend yield looks even more attractive at around…

Read more »

Oil pumps against sunset
Energy Stocks

3 Oil Stocks With Surprisingly Good Dividends

| Christopher Liew, CFA

Three TSX oil stocks are among the top picks for income investors looking for good dividends in 2022 and beyond.

Read more »

oil and natural gas
Energy Stocks

Why Suncor Energy (TSX:SU) Stock Crashed Last Week

| Andrew Button

Suncor Energy (TSX:SU)(NYSE:SU) stock crashed along with oil prices last week.

Read more »

think thought consider
Dividend Stocks

Precision Drilling (TSX:PD) Stock Falls 25% From the Top: What Should You Do?

| Vineet Kulkarni

Oilfield services stocks have created massive shareholder value since the pandemic.

Read more »

TSX Today
Energy Stocks

TSX Today: What to Watch for in Stocks on Monday, June 20

| Jitendra Parashar

While the U.S. market will remain closed for Juneteenth National Independence Day, heightened volatility in commodity prices could still keep…

Read more »

Glass piggy bank
Energy Stocks

TFSA Investors: How to Turn Your $10,000 TFSA Into $100,000

| Nicholas Dobroruka

TFSA investors looking to make a fortune in the stock market would be wise to take advantage of today’s discounted…

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 Canadian Energy Stocks for Market-Beating Returns

| Adam Othman

Canadian energy stocks could be excellent bets for investors seeking shelter in the strength of commodities amid high inflation rates.

Read more »

Oil pumps against sunset
Energy Stocks

Suncor (TSX:SU) Stock: Time to Buy the Dip?

| Andrew Walker

Suncor stock looks cheap today. Is this the right time to buy?

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

Market Correction: Time to Take Profits in TSX Energy Stocks?

| Joey Frenette

Suncor Energy (TSX:SU)(NYSE:SU) and Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) are big oil stocks that investors may wish to buy on weakness.

Read more »

oil and natural gas
Energy Stocks

Oil to $150? 3 Stocks to Buy if You Think it Will Happen

| Christopher Liew, CFA

Three energy stocks are profitable picks if oil prices rise significantly higher than their levels today.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Energy Stocks

Why TFSA Investors Shouldn’t Worry About a Market Crash

| Jitendra Parashar

Long-term TFSA investors should remain focused on building wealth in the long run by buying cheap stocks amid short-term market…

Read more »

oil tank at night
Energy Stocks

Despite the Recent Weakness, TSX Energy Stocks Still Look Strong

| Vineet Kulkarni

Canadian energy stocks have gained 60% this year, while the TSX Composite Index has lost 8%.

Read more »

oil and natural gas
Energy Stocks

Canadian Natural Resources (TSX:CNQ): Is it Time to Buy the Energy Stock Amid the Canadian Oil Boom?

| Adam Othman

Canadian Natural Resources (TSX:CNQ) stock could be an excellent addition to your portfolio as oil prices continue to rise.

Read more »

TSX Today
Energy Stocks

TSX Today: Why Stocks Could Remain Highly Volatile on Wednesday, June 15

| Jitendra Parashar

The U.S. Fed’s key interest rate decision and economic projections could keep TSX investors on their toes today.

Read more »

Value for money
Dividend Stocks

Value Investors: 2 TSX Stocks Deserve Serious Attention

| Christopher Liew, CFA

Two TSX stocks are exciting picks that deserve serious attention from value investors.

Read more »