Canadian Natural Resources Ltd (CNQ)
Canadian Natural Resources (CNQ) is a prominent player in the Canadian energy sector, known for its diversified portfolio in crude oil, natural gas, and natural gas liquids. The company's operations are spread across various regions, including North America, the North Sea, and Offshore Africa, with a significant emphasis on the oil sands of Northern Alberta.
CNQ is notable for its cost-effective and efficient operations, particularly in oil sands mining, which have been key to its resilience in a market characterized by volatile oil and gas prices.
In Q3, the company achieved record quarterly production volumes, averaging approximately 1,394,000 barrels of oil equivalent per day (BOE/d). Adjusted net earnings came in at C$2.9 billion.
Earlier this month, the company announced an 11% increase to its quarterly cash dividend to C$1.00 per share, translating to an annual yield of 4.5% at the current share price.
CNQ is listed on both the Toronto Stock Exchange and the New York Stock Exchange.
RBC Capital Markets analyst Greg Pardy has an "outperform" rating on CNQ and a price target of $96 on its TSX-listed shares, implying a potential upside of 8%.
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West Fraser Timber Co. Ltd. (WFG)
West Fraser Timber (WFG) is a leading North American integrated wood products company. Headquartered in Vancouver, it operates multiple facilities in Canada, the U.S., the U.K. and Europe.
The company's primary focus is on producing lumber, one of the most commonly used building materials. In addition to lumber, West Fraser also manufactures panels, pulp, newsprint, wood chips, and other related products.
In Q3, West Fraser generated $1.705 billion in sales and $159 million in earnings.
More recently, the company announced that it has completed the acquisition of Spray Lake Sawmills located in Cochrane, Alberta. CEO Ray Ferris said that the acquisition is “an ideal fit” for West Fraser’s lumber and treated wood business.
Just like CNQ, West Fraser is listed on both the TSX and the NYSE.
CIBC analyst Hamir Patel has an "outperform" rating on West Fraser and a price target of C$119 on its TSX-listed shares — around 16% above where the stock sits today.
Barrick Gold Corp (GOLD)
Canada is rich in minerals — including gold. It’s also home to one of the largest gold mining companies in the world: Barrick Gold (GOLD).
Headquartered in Toronto, Barrick operates mines and projects in various countries across North and South America, Africa, and the Middle East. Besides its primary focus on gold, the company also produces copper.
In 2022, Barrick produced 4.1 million ounces of gold and 440 million pounds of copper.
Gold prices, like those of most commodities, are subject to fluctuations. However, historically, the yellow metal has been regarded as a reliable store of value and a hedge against inflation. This is largely due to its inherent scarcity and its ability to maintain its purchasing power over long periods of time.
The price of gold has climbed nearly 12% in 2023, but Barrick’s NYSE-listed shares have declined about 2.5% during the same period. The company is also listed on the TSX under the ticker ABX.
Scotiabank analyst Tanya Jakusconek has an "outperform" rating on Barrick and a price target of $25 on its NYSE-listed shares. Considering that shares currently trade at $17.38, the price target implies a potential upside of around 44%.
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