We recently published a list of 10 Best Canadian Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Canadian Natural Resources Limited (NYSE:CNQ) stands against other best Canadian stocks to buy according to billionaires.
Against the backdrop of trade war concerns and retaliation against Trump’s tariff hikes on Canadian imports, investors are closely monitoring the impact on cross-border trade. The uncertainties threaten to disrupt economic growth and corporate earnings in both countries. Recently, Trump finalized a 25% hike on the import of goods from Canada and Mexico, causing the US and Canadian stocks to fall and sparking threats of a trade war. The tariffs are expected to affect more than $918 billion worth of US imports from Canada and Mexico. According to Reuters, the move could upend nearly $2.2 trillion in annual U.S. trade with its top three trading partners. Additionally, 20% tariffs against Chinese goods have doubled the levy on China from last month. In retaliation to the tariff hikes, Canadian Prime Minister Justin Trudeau has now announced a 25% tariff on C$30 billion (US$20.7 billion) worth of U.S. imports. BBC has reported that the US tariffs are likely to push up prices for consumers in the US and abroad soon.
Morningstar predicts that the US tariffs now in place indicate that the Bank of Canada may need to implement aggressive interest rate cuts to counter the economic fallout and stabilize the economy. The BoC has been one of the most aggressive central banks in cutting rates. Earlier this year, the Bank trimmed its key policy rate by 25 basis points to 3% and scaled down the country’s economic growth outlook to 1.8% in 2025 from the 2.1% predicted in October in anticipation of the tariffs. In its Monetary Policy Report, the BoC has noted that the Canadian economy showed signs of resilience at the end of 2024, contributing to an increase in household spending and housing activity. While inflation has remained at 2% since August 2024, the uptick in economic growth was fueled by a rapid series of interest-rate cuts, which are now threatened by the uncertainties of trade relations.
For American investors, investing in Canadian stocks listed on U.S. stock exchanges offers the opportunity to diversify their portfolios with companies operating in a resilient economy. However, with the headline index for the Canadian equity market dropping 1.7% to close at 24,570 on March 4 and extending the previous session’s 1.5% decline to reach a seven-week low, investors should brace for continued uncertainty as markets adjust to the new trade dynamics. The best Canadian stocks took a hit, especially in sectors such as transportation and energy, calling for a reassessment of investing strategies. While there is no set formula to benefit from billionaire portfolios and stocks billionaires invest in, the UBS Billionaire Ambitions Report 2024 highlights some key themes of extensive diversification that can be beneficially incorporated into investment strategies for long-term resilience.
Our Methodology
We analyzed Insider Monkey’s exclusive database of billionaire stock holdings to compile our list of best Canadian stocks to invest in according to billionaires. We selected the 10 best stocks to buy based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. These billionaires are founders or managers of some of the world’s leading hedge funds and companies.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A vast oil rig pumping crude oil during a sunset, emphasizing the company’s focus on oil & gas exploration and production.
Canadian Natural Resources Limited (NYSE:CNQ)
Number of Billionaires: 14
Canadian Natural Resources Limited (NYSE:CNQ) is a Canadian energy company engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. With a diverse portfolio that includes oil sands mining, conventional oil and gas operations, and offshore ventures, the company serves markets across North America and internationally.
In October 2024, Canadian Natural Resources Limited (NYSE:CNQ) announced the acquisition of Chevron’s assets in the Athabasca oil sands and Duvernay shale formations for $6.5 billion. This strategic move increased the company’s stake in the Athabasca project to 90% and is expected to enhance its production capacity by approximately 62,500 barrels per day.
In 2024 Canadian Natural Resources Limited (NYSE:CNQ) faced challenges of softened demand from China and extended output cuts by the OPEC+ group. Nevertheless, the company’s oil and gas output rose to 1.47 million barrels of oil equivalent per day during the quarter, reflecting its operational resilience. Despite a challenging market environment with weaker oil prices, the company achieved an annual adjusted net earnings of approximately $7.4 billion and adjusted funds flow of $14.9 billion, including Q4/24 adjusted net earnings of approximately $2.0 billion and adjusted funds flow of $4.2 billion.
Canadian Natural Resources Limited (NYSE:CNQ) announced a 4% increase to its quarterly cash dividend on its common shares. The Company has a leading track record of dividend increases, growth rate (“CAGR”) of 21%.
Overall, CNQ ranks 4th on our list of best Canadian stocks to buy according to billionaires. While we acknowledge the potential for CNQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CNQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
