Energy companies dominate TSX's list of top 30 stocks over past 3 years

Paramount Resources (Pre-Merger)

12/09/2023 18:00

Sept 12 (Reuters) - Energy companies including Paramount
Resources and NuVista dominated the list of 30 best performing
Canadian stocks over the past three years, an annual ranking by
the Toronto Stock Exchange (TSX) showed on Tuesday.
    Shares of the 30 companies have surged more than six times
on average over the past three years after adjusting for
dividends and together added over $120 billion in market value,
according to TSX.
    Of those, 20 were energy firms with Paramount Resources
 POU.TO  and NuVista Energy  NVA.TO  topping the list with their
1,913% and 1,279% surge.
    Energy stocks closely track oil prices  CLc1 , which have
surged more than 84% since the end of 2020 fuelled by a recovery
in demand as economies opened up after COVID-19 lockdowns,
supply constraints due to the Russia-Ukraine conflict and
production curbs by OPEC+.
    The energy sector  .SPTTEN  has the second biggest influence
on the Toronto Stock Exchange's $2.37 trillion S&P/TSX composite
index  .GSPTSE , which houses 226 companies and has climbed
24.4% in the past three years.
    "Investors are saying these companies are generating so much
cash flow and are still undervalued," said David Chelich, global
head of energy at TSX.
    In comparison, the much larger $37.49 trillion Wall Street
benchmark S&P 500  .SPX , which is largely skewed towards
technology companies, has climbed 34.2% in the same period.
    "The backdrop for energy remains quite constructive, at
least in the near term," said Mike Archibald, portfolio manager
at AGF Investments.
    "They've continued to have good discipline in terms of capex
and are increasing production a lot. So there are lots of cash
flows that are coming into these companies."
    Other sectors in the list of 30 best performing Canadian
stocks were miners including Filo Corp  FIL.TO  and China Gold
International Resources  CGG.TO , as well as industrial firms
such as Bombardier  BBDb.TO  and Black Diamond Group  BDI.TO .
    Heavyweight financial stocks  .SPTTFS  were not part of the
list.

 (Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru;
Additional reporting by Khushi Singh; Editing by Shounak
Dasgupta)
 ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs))