Among the Canadian energy stocks, 12 are undervalued, but only one has a buy rating, and Gastar Exploration (GST) ($2.57) is speculative trading under $3 a share. I consider a stock trading below $3 as an option on survival.
Note that seven stocks have double-digit percentage gains over the last 12 months, and that five have double-digit losses. Buy-rated Gastar is the only stock projected to be higher over the next 12 months. Only three have single-digit 12-month trailing price-to-earnings ratios, and 11 are trading below their 200-day simple moving averages.
In addition to the stocks presented today, I have a spreadsheet of 259 Canadian energy stocks that do not trade in the U.S. According to ValueEnginie, only five have buy ratings, 111 are rated hold, 98 are rated sell, and 26 are rated strong sell. The remainder are not rated by ValuEngine. That is a similar distribution for the stocks traded in the U.S.The bottom line is that energy stocks are not cheap and there are no clear winners at the present time. Where I have value levels and risky levels, buy-and-trade strategies can be employed.
At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV