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. Baytex Energy ( BTE) ($37.21), Pengrowth Energy ( PGH) ($5.11) and Penn West Petroleum ( PWE) ($10.72) have recently been downgraded to sell from hold.
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 @SuttmeierThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.