8 Best Bargain Stocks To Buy in October

3. Cenovus Energy Inc. (NYSE:CVE)

Forward P/E as of September 28, 2024: 9.19

Analyst Upside Potential as of September 28, 2024: 46%

Number of Hedge Fund Holders: 46

Cenovus Energy (NYSE:CVE) is one of the best bargain stocks to buy now. The company is based in Canada and is engaged in the production and exploration of natural gas and cruise oil. The company owns several oil and gas fields and operations in oil sands and refining.

During the second quarter of 2024, the company produced an average of 800,800 barrels of oil per day. As for its crude oil, the company’s refineries produced an average of 568,900 barrels per day, up by 17,800 barrels from the previous quarter.

The Canadian entity managed to achieve significant milestones during the quarter. Its new pipeline to Christina Lake is expected to be operational by the end of 2024 and will be able to deliver oil by the middle of 2025. In addition to that. Cenovus Energy (NYSE:CVE) initiated two well pads at Sunrise, expected to be completed by the end of this year. As for its ongoing West White Rose project, the structure reached its final height, and part of the construction was completed.

Overall, the company is not only a rising star, but it is also performing well financially. By June 30, Cenovus Energy (NYSE:CVE) had a net debt worth of $4.26 billion, and in July the company swiftly achieved its target of $4 billion. As a result of this achievement, the company will be able to level up its returns to its shareholders.

The company is an important player in the energy segment and an investor favorite. The company strongly believes in giving back to its shareholders, as evidenced by its returns in the previous quarter. Such explains why 46 hedge funds were bullish on the stock at the end of Q2 2024.

L1 Capital L1 Long Short Fund stated the following regarding Cenovus Energy Inc. (NYSE:CVE) in its first quarter 2024 investor letter:

“Cenovus Energy Inc. (NYSE:CVE) (Long +20%) shares performed strongly as the WTI oil price increased 16% to ~US$83/bbl, while refining margins in the U.S. Midwest improved dramatically from a low base. During March, Cenovus’s 2024 investor day was well received, where its 5-year outlook for the business included growth in upstream production of around 150m bbl/d above the current 800m bbl/d and a material turnaround of its downstream refining business. Over the next five years, the company expects to generate C$32b of cumulative free cash flow based on a US$75/bbl WTI oil price, a highly attractive prospect given its current market cap of ~C$51b. Furthermore, it has committed to return 100% of excess cash flow back to investors once it reaches its C$4b net debt target (expected in 2024). Cenovus’s strong cash flow generation, combined with the long-life nature of its oil sands assets and its low cost of production, make it one of our preferred Energy exposures.”