8 Best TSX Stocks To Invest In Now

5. Canadian Natural Resources (NYSE:CNQ)  

Number of Hedge Fund Investors: 46  

Canadian Natural Resources (NYSE:CNQ) is a leading independent oil and gas producer in Canada, with a diverse portfolio of assets in Western Canada, the United Kingdom, the North Sea, offshore Africa, and other international locations.

Despite steady production levels of around 1.3 million barrels per day over the past couple of years, the company is well-positioned to capitalise on improving market conditions, particularly in the natural gas sector. As natural gas prices continue to rise, Canadian Natural Resources (NYSE:CNQ) is expected to increase production, driving revenue and gross profit growth. The company’s unit economics, as measured by netback analysis, have already shown a significant improvement, increasing from $20.64/bbl to $28.68/bbl in Q2 compared to the same quarter in the previous year. This trend is expected to continue, with netbacks potentially reaching $30-35/bbl, driven by operational improvements and higher natural gas prices.

The US Energy Information Administration’s (EIA) short-term energy outlook forecast suggests that natural gas prices will increase over the next year, driven by increased liquefied natural gas (LNG) exports. Canadian Natural Resources (NYSE:CNQ) is well-positioned to benefit from this trend, having intentionally held back on natural gas production, with approximately 20% of its remaining 2024 planned natural gas wells drilled but production curtailed.

With a strong portfolio of assets and a proven track record of operational efficiency, Canadian Natural Resources (NYSE:CNQ) is poised to capitalise on the expected price increase and drive long-term growth and profitability.

In the second quarter, Canadian Natural Resources (NYSE:CNQ) stock was held by 46 hedge funds with stakes worth $3.77 billion. Fisher Asset Management is the largest shareholder in the company with a stake worth $1.49 billion as of June 30. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $11, which represents a 48% upside potential from its current level.