10 Undervalued Canadian Stocks to Buy Now

2. Canadian Natural Resources Limited (NYSE:CNQ)

Forward P/E as of April 4: ~12.08x

Number of Hedge Fund Holders: 54

Canadian Natural Resources Limited (NYSE:CNQ) is engaged in acquiring, exploring, developing, and producing natural gas, crude oil, and related products. The company has its headquarters in Calgary, Canada. RBC analyst Greg Pardy reaffirmed the bullish outlook on the company, tagging it as the most compelling buying opportunity amongst its Canadian majors group. The firm’s optimism reflects Canadian Natural Resources Limited (NYSE:CNQ)’s strong leadership team, shareholder alignment, FCF generation across cycles, healthy operating performance as well as strong shareholder returns.

The analysts at the firm lauded its low-cost structure and agility in capital allocation adjustments. This adaptability has been considered as a critical asset, enabling Canadian Natural Resources Limited (NYSE:CNQ) to withstand several external economic shocks.  The company’s status as a low-cost producer provides it resilience against price volatility and enables it to maintain profitability in a challenging environment.  Canadian Natural Resources Limited (NYSE:CNQ)’s investments in innovative technologies showcase its commitment to operational efficiency and growth. These initiatives can result in the improvement of production metrics. The company’s diverse and large portfolio is aided by long-life, low-decline assets, which can fuel top-tier operating costs and low maintenance capital. When combined, it can lead to significant and sustainable FCF, which can be repeated for decades.