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Marathon Petroleum Corporation (MPC)
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Occidental Petroleum Corporation (OXY)
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Imperial Oil Limited (IMO)
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Tourmaline Oil Corp. (TOU)
Q: Hello. Can I please have your top Cdn or U.S. energy stock choices. Could you please compare them and advise if you have a preference or rank them accordingly with an explanation for a 3 week hold. Thank you.
5i Research Answer:
3-week is a really short-term horizon where anything could happen and any 'ranking' over a short time frame is quite meaningless. Energy companies depend largely on oil prices, and short-term volatility in oil prices is unpredictable.
We think TOU, OXY, MPC, IMO are quite safe bets on this theme as these companies are mostly returning lots of capital to shareholders. However, investors need to be more patient with a longer time horizon for the thesis to work out. These are ranked in terms of possible upside potential, largely based on management and growth prospects. If one wanted smaller companies, we would suggest: WCP, KEL, BIR.