2024-03-22 08:24:49 ET
Summary
- Canadian Natural Resources is the largest and highest-quality Canadian O&G producer, with a recent strong stock performance.
- CNQ recently achieved its debt target and switched to 100% FCF payout to shareholders via dividends and buybacks.
- After the stock run-up, CNQ became one of the few fully priced names in the Canadian O&G space.
- With the higher stock price, there is strong insider selling, sending a bad signal to the market.
- There are better opportunities with high-quality names in the Canadian O&G sector, which I believe will outperform CNQ in the next 3-5 years.
As Peter Lynch teaches , you make money in the stock market when the situation goes from terrible to mediocre, mediocre to good, or good to terrific. When it's terrific, it might be time to sell....
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Canadian Natural Resources: Fully Priced, Good Time To Consider Switching