Stock of the Day

Canadian Natural Resources (CNQ)

$30.97

+$0.06 (+0.2%)

Market Cap: $64.75B

About Canadian Natural Resources

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO).

The company's midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

Canadian Natural Resources Bull Case

Here are some ways that investors could benefit from investing in Canadian Natural Resources Limited:

• The current stock price is around $31, which may present a buying opportunity for investors looking for value in the energy sector.
• Canadian Natural Resources Limited has recently increased its quarterly dividend to $0.4227, reflecting a commitment to returning value to shareholders, with an annualized yield of approximately 5.45%.
• The company reported earnings per share (EPS) of $0.81, exceeding analysts' expectations, indicating strong financial performance and potential for future growth.
• With a market capitalization of approximately $64.98 billion, Canadian Natural Resources Limited is a significant player in the oil and gas industry, providing stability and potential for long-term investment.
• Analysts have a consensus target price of $63.00, suggesting a potential upside for investors based on current market conditions and company performance.

Canadian Natural Resources Bear Case

Investors should be bearish about investing in Canadian Natural Resources Limited for these reasons:

• The company had a revenue of $6.96 billion, which fell short of analyst estimates, raising concerns about its ability to meet future growth expectations.
• Despite a solid EPS performance, the year-over-year comparison shows a decline from $1.37 EPS, indicating potential challenges in maintaining profitability.
• The stock has experienced volatility, with a 52-week range between $24.65 and $38.86, which may deter risk-averse investors.
• Canadian Natural Resources Limited has a debt-to-equity ratio of 0.21, which, while relatively low, still indicates some level of financial leverage that could pose risks in a fluctuating market.
• Recent downgrades from some analysts, including a shift from "strong-buy" to "hold," may signal caution regarding the stock's short-term performance.

Recent News

• Canadian Natural Resources restarts oil sands operation as wildfire risk lessens (msn.com)
• Canadian Natural Resources: The Dividend Engine Hiding In Plain Sight (seekingalpha.com)
• Canadian Natural Resources: My Number 1 Energy Pick (seekingalpha.com)
• So Cheap It's Silly - 2 Dividend Stocks I'd Buy Twice If I Could (seekingalpha.com)
• 2 High-Yield Canadian Dividend Stocks for Income Investors (fool.ca)