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3 Explosive Gas Stocks to Buy Now

ECA, DVN and SWN should spring to life as nat. gas prices rebound

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Encana185Encana (NYSE:ECA) is a Canadian natural gas play that has underperformed significantly lately despite the rise in gas prices. It’s actually in the red year-to-date in part because it just posted a pretty steep loss for fiscal 2012 in February.

However, on the plus side, Encana boasts $3.2 billion in cash and equivalents on the books and is projected to finish soundly in the black this year, followed by continued improvement in fiscal 2014. Longer-term, there’s big potential for future growth since Canada is aiming to become a major LNG exporter to the U.S. and abroad.

ECA stock trades at about 15 times forward earnings. Throw in a 4.3% dividend, and you have a pretty good long-term play here.

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