Whenever you’re putting your money to work, the most important thing is to always buy high-quality stocks that you can own long term. However, it’s also worth considering which stocks and industries have momentum. There is far more opportunity in buying a top Canadian oil stock right now, for example, rather than stocks in industries that are falling out of favour.
Oil stocks and the entire energy industry offer several advantages for investors. It’s an industry that’s crucial to our economy. Plus, as the world economy grows, the demand for energy is increasing as well.
And with energy stocks having a tonne of short-term tailwinds, there’s no question that top Canadian oil companies are some of the best investments that you can make right now. So if you’re looking to take advantage of the current market environment, here are two high-quality stocks to consider today.
One of the largest Canadian oil stocks to buy now If you’re looking to buy top Canadian oil stocks that could benefit significantly from the current economic environment, Cenovus Energy (TSX:TSX:CVE)(NYSE:CVE), the $42 billion integrated energy company, is one of the best to consider.
Cenovus’ massive operations and its integrated assets make it one of the best investments in the oil industry today. It’s currently the third-largest Canadian oil and natural gas producer, plus it’s the second-largest Canadian-based refiner and upgrader.
Cenovus has more than doubled in value over the last year as more tailwinds continue to positively impact top Canadian oil stocks. So going forward, it could continue to see its operations positively impacted while energy prices are so high.
It’s worth noting, though, that Cenovus doesn’t pay much of a dividend today. However, that’s because it’s been working to pay down debt in recent quarters. So investors could begin to see dividend increases soon as the balance sheet is in much better shape today.
Despite its rally in recent months, Cenovus still trades at a forward enterprise value to EBITDA ratio of just 4.8 times, an attractive valuation.
So if you’re looking to buy the top Canadian oil stocks now, Cenovus is one of the best to consider.
A former Warren Buffett holding with tonne of potential in this environment In addition to Cenovus, another massive large-cap energy stock to consider buying today is Suncor Energy (TSX:TSX:SU)(NYSE:SU).
Suncor is another massive Canadian energy giant, with a market cap nearly 50% larger than Cenovus, at over $58 billion. It’s one of the best stocks to buy if you want exposure to the Canadian oil industry, which is one of the main reasons Warren Buffett used to own the stock.
Cenovus and Suncor have a lot in common besides just their size. However, one of the main differences is that Suncor offers a significant yield, making it a lot more attractive for dividend investors.
At the current market price, Suncor stock yields an attractive 4.15%. Plus, in addition to the dividend, Suncor shares have also gained consistently over the last year.
So if you’re looking to buy high-quality Canadian oil stocks that you can hold for years, Suncor is one to put at the top of your watchlist.
The post 2 of the Top Canadian Oil Stocks to Buy Now appeared first on The Motley Fool Canada.
Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.