Zacks Investment Research has identified Cenovus Energy and Par Pacific as two bargain energy stocks that may not stay cheap for long. The oil-energy sector has rallied 17.9% year to date, outperforming the S&P 500's 10.4% gain, with geopolitical tensions in the Middle East continuing to support oil prices. Cenovus Energy, an integrated player with operations in Canadian oil sands and North American refining, trades at a trailing 12-month EV/EBITDA of 6.28x, below the industry average of 6.45x. Par Pacific, a refiner benefiting from diverse crude sources including cheaper Canadian heavy oil, trades at a trailing 12-month EV/EBITDA of 4.84x, compared to the industry average of 5.50x. Both stocks currently carry a Zacks Rank of 1, indicating a Strong Buy.
Cenovus Energy IncZacks identifies Cenovus as undervalued with a Strong Buy rating, citing below-average EV/EBITDA.
Par Pacific Holdings IncZacks identifies Par Pacific as undervalued with a Strong Buy rating, citing below-average EV/EBITDA.