Billionaire Ray Dalio’s Top 5 Energy Stock Picks

4. Cenovus Energy Inc. (NYSE:CVE)

Bridgewater Associates’ Stake Value: $32,710,000

Percentage of Bridgewater Associates’ 13F Portfolio: 0.16%

Cenovus Energy Inc. (NYSE:CVE) is a leading Canadian integrated oil company. It is engaged in the business of developing, producing and selling crude oil, natural gas, and natural gas liquids. The company is well-positioned to benefit from the continued growth of the oil and gas industry in Canada. As of September 30, Bridgewater Associates holds a position worth $32.7 million in Cenovus Energy Inc. (NYSE:CVE) and the investment covers 0.16% of the fund’s 13F portfolio.

This November, RBC Capital analyst Greg Pardy raised his price target on Cenovus Energy Inc. (NYSE:CVE) to C$32 from C$31 and maintained an Outperform rating on the shares. On November 3, Raymond James analyst George Huang raised his price target on Cenovus Energy Inc. (NYSE:CVE) to C$32 from C$30 and reiterated an Outperform rating on the shares.

On November 2, Cenovus Energy Inc. (NYSE:CVE) announced earnings for the fiscal third quarter of 2022. The company reported earnings per share of $0.53 and generated a revenue of $13.64 billion, up 25.85% year over year, beating estimates by $2.71 billion. As of November 11, the stock has gained 71.10% year to date.

Here is what L1 Capital Lhad to say about Cenovus Energy Inc. (NYSE:CVE) in its third-qaurter 2022 investor letter:

“Cenovus Energy (Long -13%) shares declined over the quarter due to an ~18% decline in oil prices on increasing fears of a U.S recession and a slowdown in global growth. Given the long-life nature of its oil sand assets and its low cost of production, we estimate Cenovus is free cash flow break-even at an oil price of ~US$40/bbl. Despite the recent fall, oil prices remain more than double this break-even point, implying considerable free cash flow generation potential for the company at current levels, with Cenovus currently trading on a consensus FY22 free cash flow yield of around 20%. There are also additional value realisation catalysts with the company continuing to progress the de-gearing of its balance sheet via organic cash generation and asset sales.”