CNQ Stock Analysis: Should You Buy, Hold, or Sell?
Canadian Natural Resources (CNQ), a major player in the energy sector, is attracting attention from investors. With its consistent performance, this Calgary-based company has proven itself as a reliable stock. It has established a solid reputation over the years, especially for offering attractive dividends and capital gains.
Current Stock Performance and Market Position
As of now, CNQ stock trades at approximately $45 per share, with a market capitalization nearing $93.9 billion. Despite not experiencing a significant price increase lately, the stock has increased almost 200% over the past five years. Investors benefit from a quarterly dividend, resulting in an annual yield of around 5.2%.
Financial Highlights
In the third quarter of 2025, Canadian Natural Resources reported impressive production figures, averaging 1.6 million barrels of oil equivalent per day. Key financial metrics revealed:
- Adjusted net earnings: $1.8 billion
- Adjusted funds flow: $3.9 billion
- Revenue growth: Nearly 7% year-over-year
- Adjusted EBITDA increase: Over 15% year-over-year
The company’s success can be attributed to enhanced operating efficiencies and robust contributions from its oil sands operations. Notably, CNQ returned $1.5 billion to shareholders through dividends and share repurchases in the last quarter.
Future Outlook
Looking ahead, Canadian Natural plans for an operating capital budget of about $6.3 billion for 2026. This budget aims to maintain production between 1.59 and 1.65 million barrels of oil equivalent per day, indicating a target production growth of around 3% at midpoint. The company is also advancing engineering efforts for upcoming oil sands and thermal projects, which are expected to enhance value beyond 2026.
Investment Recommendations
For current CNQ shareholders, the stock appears to be a solid hold. However, investors seeking dependable income may find it appealing at current valuations. Its reputation for dividend growth—25 consecutive years—underscores its reliability as an income stock.
In conclusion, CNQ stock is a stable option for investors prioritizing income and long-term growth. However, prospective buyers should consider their investment strategies carefully, as it may not be an optimal choice for short-term trading.
