8 Best TSX Stocks To Invest In Now

6. Cenovus Energy (NYSE:CVE)  

Number of Hedge Fund Investors: 46  

Cenovus Energy (NYSE:CVE) is a leading Canadian oil and natural gas producer with a diverse asset base, including conventional oil and gas fields, oil sands operations, and a refining segment. The company’s refining segment includes two refineries in the United States, providing a stable source of cash flow.

In Q2, Cenovus Energy (NYSE:CVE) delivered a strong production beat, producing 800,800 barrels of oil equivalent per day, exceeding consensus expectations. The company also upgraded its guidance for downstream performance, setting the stage for a robust second half of the year. With a free cash flow yield significantly higher than its peers, Cenovus Energy (NYSE:CVE) is well-positioned to focus on liquid production and its refining segment, generating strong cash flows that will enable the company to return value to shareholders through share buybacks.

Having achieved its net debt target of $4.0 billion, Cenovus Energy (NYSE:CVE) is now focused on returning value to shareholders through share repurchases. The company has announced that it will allocate 100% of its excess free cash flow towards share buybacks, which will help to reduce its share count and increase its earnings per share.

This commitment to shareholder returns, combined with its strong growth prospects, makes Cenovus Energy (NYSE:CVE) an attractive investment opportunity for investors seeking a high-quality energy company with a strong growth profile. In the second quarter, Cenovus Energy’s (NYSE:CVE) stock was held by 46 hedge funds with stakes worth $1.21 billion.