Abandoned by investors, these 10 most-battered Canadian oil stocks look ripe for a rebound

OPEC’s efforts to prop up prices has done little for Canadian energy stocks. But while they might be down, not all of them are out

Yadullah Hussain

OPEC and its allies may be rejoicing at their hard-earned efforts to prop up prices, but it has done little to bring a smile on the faces of Canadian oil and gas investors. In fact, they seem to be in a downright foul mood.

While the West Texas Intermediate American benchmark is up 1.5 per cent for the year, the S&P Capped Energy Index is down nearly 14 per cent before markets opened on Thursday — the oilpatch has even thumbed its nose at the 18 per cent rally over the past three months, staying virtually flat during that period.

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But if you are a patient investor, willing to drown out all the noise and volatility, many of these stocks may be ripe for a rebound, according to analysts.

These are the 10 worst-performing stocks that are weighing down the index. While they are all down, not all of them are out — all data from Bloomberg before market opened on Friday:

Bonavista Energy Corp., which operate primarily in Canada’s oil and liquids rich natural gas resources, has been the biggest investor disappointment in Canadian oil and gas space to date. The stock is down 53 per cent for the year, and has even shrugged off a 5 per cent jump in oil prices during November, jumping off yet another cliff to fall 19 per cent during the month.

RBC Capital Market analyst Michael Harvey offers that the company is “rolling with the punches” as it adapts to lower natural gas prices. On the bright side, Harvey has a price target of $4 for Bonavista, from its current price of $2.28.