Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 24 Oct, 25 | SCR | Buy | CAD 35.8 | CAD 37.58 | CAD 38.0 | 13 days | Closed |
6.73%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Strathcona Resources Ltd. acquires, explores, develops, and produces petroleum and natural gas reserves in Canada. It operates through three segments: Cold Lake, Lloydminster, and Montney segments. The Cold Lake Thermal segment includes three producing assets in the Cold Lake region of Northern Alberta; and Lindbergh, Orion, and Tucker. The Lloydminster Heavy Oil segment has multiple oil-in-place reservoirs accessed through enhanced oil recovery techniques and thermal steam-assisted gravity drainage located in Southwest Saskatchewan. The Montney segment includes assets in the Northwest Alberta Kakwa region; Grande Prairie regions; and the Northeast British Columbia Groundbirch region. The company was incorporated in 2009 and is headquartered in Calgary, Canada.
Higher Net Margin: 17.5% in Q2 2025 vs 15.3% of Industry Median
Higher Current Ratio: 2.19x in Q2 2025 vs 1.07x of Industry Median
Higher Debt to Equity Ratio: 0.53x in Q2 2025 vs 0.42x of Industry Median
Higher Cash Cycle Days: 29.7 Days in Q2 2025 vs 0.8 Days of Industry Median
Volatility in the commodity price, Regulatory risks, Trade tariffs, Inflationary pressures, Lower cash flows, etc.
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 35.8 | 33.65 | 37.58 | 38.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Operational Performance and Efficiency Gains: The company's record-low steam-oil-ratio (2.8x) at Tucker highlights significant efficiency improvements, lowering operating costs and enhancing margins across its heavy oil portfolio.
Focused Growth and Value Creation Strategy: Following divestitures of non-core Montney assets, Strathcona’s transition to a pure-play heavy oil producer positions it for focused capital deployment, strong cash generation, and potential shareholder returns.
An Income Play: Recently, the company paid a dividend of CAD 0.30 per common share on on September 22, 2025 to shareholders of record on September 12, 2025. Moreover, at the last closing price of CAD 35.80 as on 23 October 2025, the stock offered a healthy dividend yield of ~3.35%, which looks decent considering the current macros and interest rates.
Considering the expected valuation upside, operational performance and efficiency gains, focused on growth & value creation strategy and key business risks, a ‘Buy’ recommendation has been given on the stock at the last closing price of CAD 35.80, as on October 23, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Oil & Gas E&P
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SCR Strathcona Resources Ltd. |
0.33 1.26% | 26.50 | 9.25 | 20.58 | 1.20 | 0.84 | 1.06 | 3.19 |
| CNQ Canadian Natural Resources Ltd |
1.18 2.36% | 51.09 | 15.08 | 17.21 | 2.58 | 2.44 | 2.60 | 6.61 |
| OXY Occidental Petroleum CDR (CAD Hedged) |
0.35 1.89% | 18.90 | - | - | - | - | ||
| TOU Tourmaline Oil Corp. |
-0.59 0.96% | 60.90 | 16.87 | 12.59 | 5.22 | 1.40 | 4.00 | 6.97 |
| WCP Whitecap Resources Inc. |
0.19 1.56% | 12.40 | 10.27 | 9.95 | 3.16 | 1.29 | 3.38 | 6.33 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on October 24, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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