Canadian Natural Resources Limited (CNQ:NYSE)
Price at Preparation: $35.69 (June 24th, 2024)
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What they do
Canadian Natural Resources Limited (CNQ:NYSE) is an oil and natural gas production company, which engages in the exploration, development, marketing and production of crude oil and natural gas. It operates as follows:
- Oil Sands Mining & Upgrading: producing synthetic crude oil through bitumen mining and upgrading operations.
- Midstream & Refining: focused on maintaining pipeline operations and investment.
- Exploration & Production: Holds operations in North America (largely in Western Canada), the North Sea (United Kingdom’s portion) and finally Africa through Côte d’Ivoire and South Africa.
Welcome to Theta Bandits Top Pick Tuesday. We strive to bring you free content, scouring the markets and making plans to get ahead of what we think could be new potential winners for any portfolio.
Opinion
In previous editions of Top Pick Tuesday, we have made plans around stock splits and taking advantage of the usual pattern around this action, most notable around Walmart (WMT:NYSE) and Nvidia (NVDA:NASDAQ). Canadian Natural Resources Ltd. (CNQ:NYSE) also incurred a stock split on June 11th, 2024 and has since offered a better entry point before starting to regain share price.
The chart below shows the street consensus with 12 Strong Buys, 10 Holds, 0 Sells and the 12-month Price Targets (PT) as follows:
- Low: $34.40 USD (-3.62%)
- Average: $41.31 USD (+15.74%)
- High: $46.11 USD (+29.19%)
As an added bonus to holding CNQ, the company offers a 4.45% dividend, paid quarterly and helps add a little extra to the bottom line.
Plan
Using the visual aid below, the following colours are used:
- Blue: 52-week high.
- Red: 52-week low.
- Green: 12-month PTs (low, avg, high).
- Orange: Support/resistance lines, split information
- Yellow: Our potential plan targets.
Our thesis started from the stock split, so to focus on that notice the price pulling back from the high of $41.29 USD before the split and pulling down to a fairly strong support at $33.26 USD from late 2023. The price held that support to bounce and start a potential recovery upward. Looking at some other indicators like the MACD and RSI on the bottom of the chart, both are showing strength indicating a potential continued move to the upside.
As for targets, indicated in yellow shows the first target at $39.16 USD which was a strong resistance level earlier in the year, breaking through will get us back to 52-week highs and the average 12-month PT at $41.29 USD. As always to mitigate risk it is recommended to secure profit and set stop-losses – using profits the third target is the high 12-month PT at $46.11 USD.
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RISKS
The goal is to grow capital by securing profits and limiting losses. Make sure to plan to trade within your risk tolerance, allowing time for success while updating limits and exit points to mitigate risk.
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Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.
