Canadian Natural Resources is the IBD Stock of the Day for Thursday as the Alberta, Canada-based oil producer approaches a $69.56 handle buy point. CNQ stock has risen 59% year to date, riding the energy bull market fueled largely by Russia's invasion of Ukraine.
The Ukraine conflict has caused a restructuring of global oil markets, pushing U.S. oil prices above $120 per barrel, as nations race to reduce their dependence on Russian oil and natural gas. The result has been very profitable for Canadian Natural Resources, which is one of Canada's largest producers of oil sands petroleum. Since the invasion started on February 24, the stock has grown roughly 28.5% to trade above $67 per share.
CNQ Stock: Late Stage, Unusual Circumstances
That puts the stock roughly 4% below the handle buy point on the eight-week base. A rising 10-week moving average has cradled the stock's advance since its initial move in September.
CNQ stock's relative strength line has continually picked off new highs, and its RS rating is a solid 98.
On the caution side, the stock has built a fourth-stage base. Later breakouts, past the first and second base, carry some added risk. But in a market so lopsidedly favoring oil issues, that risk may be less than under more normal circumstances.
The current annualized dividend for CNQ stock is $3 per share, yielding 3.5% and having increased for 22 years in a row. So far Canadian Natural Resources has spent $1.5 billion on stock buybacks this year.
Canadian Natural Resources ranks third in IBD's Canadian oil & gas explorers and producers industry group. Crescent Point Energy ranks first. The group ranks a lofty No. 6 among the 197 industry groups tracked by IBD.
CNQ has an EPS rating of 80, showing healthy earnings growth compared to other publicly traded companies, and it records a 21.4% annual return on equity.
CNQ currently has a "Hold" rating from analysts at Zacks Market Intelligence, although Zacks projects the company will see record earnings of $8.62 per share for the year.
