Top Energy Stocks to Watch: RBC Capital’s Global Energy Best Ideas List

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Investing.com -- RBC Capital has released its latest Global Energy Best Ideas List, highlighting top performers across the energy...

Investing.com -- RBC Capital has released its latest Global Energy Best Ideas List, highlighting top performers across the energy sector. The list features companies with strong operational performance, robust financial metrics, and promising growth potential in today’s evolving energy landscape.

RBC’s carefully curated selection spans upstream producers, midstream operators, and renewable energy players, offering investors exposure to various segments of the energy market.

These companies have demonstrated resilience and strategic positioning that analysts believe will drive outperformance in the coming months.

Here are some of the top energy stocks currently featured on RBC Capital’s Global Energy Best Ideas List:

1. Permian Resources (PR): Added to the list this month, PR continues to demonstrate consistent operational and financial performance that analysts believe can be replicated in coming years.

The company recently achieved a strong step-up in organic production while maintaining unchanged capital spending. Management appears confident in generating strong free cash flow with dividend coverage even at oil prices as low as $40/bbl.

2. AltaGas Ltd. (ALA): RBC expects stronger price valuation as AltaGas progresses through derisking initiatives, including increased contracting, pursuit of contracted/regulated growth on an equity self-financed basis, and plans to reduce leverage to 4.0x debt/EBITDA. The company possesses medium-sized growth opportunities and an increasingly visible path to reaching long-term debt targets.

In recent news, AltaGas Ltd. reported third-quarter 2025 results that missed analyst forecasts, with both earnings per share and total revenue falling short of expectations.

3. Canadian Natural Resources (CNQ): Distinguished by its management committee structure and shareholder alignment, CNQ offers a long-life, low-decline portfolio anchored by low sustaining capital, affording free cash flow generation throughout market cycles.

The company recently closed its US$6.5 billion acquisition of Chevron’s western Canada assets and completed an asset swap with Shell, strengthening its position in oil sands operations.

4. Cheniere Energy (LNG): The company’s highly contracted nature provides a defensive setup supported by stable cash flows underpinned by long-term take-or-pay contracts with high-quality counterparties. LNG is returning significant cash to shareholders via dividends and share buybacks while driving longer-term growth with expansion opportunities at Corpus Christi and Sabine Pass.

5. Chord Energy Corporation (CHRD): RBC forecasts a peer-leading 10+% free cash flow yield with sustainability given 10+ years of economic inventory. The announced ERF merger provides better visibility for that runway, and with minimal debt, CHRD supports a minimum 75% return to shareholders.

6. ConocoPhillips (COP): The depth, quality, and diversity of COP’s global inventory is considered unmatched among E&P peers. Its strong balance sheet provides strategic advantage through commodity price cycles, with a low break-even point allowing it to fund production maintenance capital and dividends below $40/bbl WTI prices.

7. EDP Renováveis (EDPR): Currently trading at a discount to invested capital, EDPR is developing 1.5GW in the US through 2026-27. RBC expects recurring earnings growth of 20% in 2025, following periods with low load factors and lower average selling prices. Share buybacks could be possible as the balance sheet strengthens by year-end.

8. Enerflex Ltd. (EFXT): The company has made solid progress on leverage reduction and increased shareholder returns. RBC expects $180 million in free cash flow by FY26, mapping to an 11% FCF yield versus the coverage group average of 8%. Enerflex recently approved a share buyback program and increased its dividend by 50%.

9. SLB: With leading size, scale, and geographic reach, SLB is well-positioned to benefit from growth in international markets. Its digital evolution should drive margin accretion, while the CHX acquisition enhances exposure to future growth markets with expected annual synergies of $400 million within three years.

10. TotalEnergies (TTE): Known for its defensiveness through market turmoil, TTE offers differentiated growth potential with a balanced approach to EPS and FCF/share growth. The company shows growing volumes across liquids and gas into 2030, a strengthening LNG portfolio, and diversified growth in its power segment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Dj Ibd: Stock Market Today: Salesforce Leads Dow Rise, Netflix Seals Warner Bros. Deal (Live Coverage)

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Warner Bros Discovery

+6.45%

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Dj Amc And Imax Stocks Drop. Roku Rises. How The Netflix-Warner Bros. Deal Could Shake Up Entertainment. - Barrons.Com

Reuters

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AMC and IMAX Stocks Drop. Roku Rises. How the Netflix-Warner Bros. Deal Could Shake Up Entertainment. — Barrons.com

Dow Jones Newswires

By Nate Wolf

Movie theater stocks, including AMC Entertainment Holdings and Cinemark Holdings, took a hit Friday from Netflix's $83 billion deal to buy Warner Bros. Discovery's studio and streaming business.

Cinemark dropped 5.2%, IMAX was down 3.4%, and Marcus fell 3.3%. AMC fell 2.4%.

The deal would give Netflix the rights to franchises like the DC comics, "Harry Potter," and "Game of Thrones." It could also tilt film even more toward streaming, an analyst pointed out Wednesday, before the deal was announced.

More Warner Bros. content could be pushed onto Netflix's streaming platform, cutting the number of wide releases and, in turn, hurting theaters, said Mike Hickey of Benchmark Equity Research in a note.

When major studios consolidate, they tend to put out fewer movies from major franchises like Harry Potter, Hickey added.

Cinemark declined to comment. AMC and Marcus didn't immediate respond to Barron's request for comment.

But movie theaters may only suffer the impact of fewer or shorter releases later on since Warner Bros.' theatrical release slate has been negotiated through 2029, analysts at Wedbush Securities said in a note Friday.

Netflix would have to honor those contracts with the theater chains — and it has said it would.

Theater chains have already worked closely with Netflix.

In October, for instance, the streaming service confirmed the screening of the "Stranger Things" series finale at more than 500 theaters nationwide. Cinemark and AMC have locations hosting the Dec. 31 event. AMC had a similar partnership with Netflix for showings of the movie "KPop Demon Hunters" on Halloween weekend.

"I am highly confident that there is more to come with our two companies working cooperatively together," AMC CEO Adam Aron told investors on the company's November earnings call. "Stay tuned."

IMAX may benefit if Netflix decides to shorten theatrical release windows. The company, which produces a high-resolution movie format for mammoth screens and uses an intense sound system, usually screens major titles over one to three weeks, the Wedbush analysts said.

On Friday, IMAX responded to Barron's by pointing to comments that CEO Rich Gelfond made to investors the day before.

On Thursday, Gelfond touted the company's relationship with Netflix. IMAX, he said, has gone out of its way to work with the streamer. Netflix's "Narnia" film, for instance, will come out exclusively at IMAX theaters for four weeks next year.

Gelfond also expressed skepticism that antitrust regulators would allow the merger to go through without theatrical releases being part of any deal.

Within the streaming sector itself, investors have also expressed concerns about Roku, whose platform distributes services like Netflix and Warner Bros.' HBO Max. The main worry is that HBO Max could shut down, reducing the number of platforms hosted on Roku.

Still, Roku stock jumped 2.7%.

"We do not anticipate any winner shutting down HBO Max in the near term, opting instead for a secondary service with bundling options," wrote the Wedbush team.

A financially healthier studio, the firm added, may also spend more on advertising on Roku's platform.

Write to Nate Wolf at nate.wolf@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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UBS shares climb as Swiss government to soften capital rules

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Advanced Micro Devices

Investing.com -- UBS stock spiked 4% on Friday after reports emerged that the Swiss government plans to water down part of a banking regulation package that could have required the bank to add up to $24 billion in additional capital.

According to Reuters, citing three people familiar with the matter, the government is preparing to soften some rules under its direct control, including regulations related to the valuation of deferred tax assets and software. These specific measures account for approximately $11 billion of the total extra capital UBS might have needed to hold.

However, the government is expected to maintain its proposal to parliament requiring UBS to fully capitalize foreign subsidiaries at home, which represents the largest portion of the potential $24 billion capital requirement, according to two sources.

The potential easing of regulations comes as welcome news for UBS, which has repeatedly warned that the stricter capital rules would harm both the wealth manager and Switzerland as a financial center. In recent weeks, industry groups, cantonal governments, and influential lawmakers have joined UBS in expressing concerns that such regulations could make Swiss banking uncompetitive.

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Moelis (MC) Stock Trades Up, Here Is Why

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Netflix

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Moelis & Co.

+3.36%

What Happened?

Shares of investment banking firm Moelis & Company jumped 3.3% in the morning session after the company was named as the financial advisor to Netflix in its massive $82.7 billion acquisition of Warner Bros. The investment bank advised Netflix on the cash and stock deal to acquire Warner Bros., which included its film and television studios. Securing a role as a financial advisor on such a large-scale transaction represented a significant win for Moelis. These advisory roles typically came with substantial fees, which directly contributed to the firm's revenue. The high-profile nature of the deal also enhanced the company's reputation in the mergers and acquisitions space.

After the initial pop the shares cooled down to $69.06, up 3.9% from previous close.

Is now the time to buy Moelis? Access our full analysis report here.

What Is The Market Telling Us

Moelis’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 3.4% on the news that investors grew more optimistic about a potential Federal Reserve interest rate cut in December.

The positive sentiment was fueled by comments from New York Fed President John Williams, a voting member of the rate-setting Federal Open Market Committee, who stated the central bank could cut rates "in the near term" without jeopardizing its inflation targets. Following his remarks, market expectations for a rate cut in December shifted significantly. According to the CME FedWatch Tool, the probability of a December rate reduction surged from a 37% chance earlier in the day to 70%. While lower rates can compress bank profit margins, investors often view them as a catalyst for broader economic activity, potentially boosting loan demand and reducing the risk of defaults.

Moelis is down 6.9% since the beginning of the year, and at $69.06 per share, it is trading 15% below its 52-week high of $81.20 from February 2025. Investors who bought $1,000 worth of Moelis’s shares 5 years ago would now be looking at an investment worth $1,612.

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Reddit (RDDT) Stock Is Up, What You Need To Know

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What Happened?

Shares of online community and discussion platform Reddit jumped 3% in the morning session after investors continued to focus on the company's strong user growth and its valuable position in the artificial intelligence data market.

This move came as the company's stock had already surged significantly over the previous six months. The positive sentiment was tied to Reddit's transformation into a key source of human-generated data for training AI models. The company secured data-sharing deals with Alphabet's Google and OpenAI, which integrated Reddit's content into their platforms. This strategy to monetize its vast collection of authentic human conversations complemented its strong core advertising business. The advertising segment benefited from rising user engagement, with the company reporting in the third quarter of 2025 that both its daily and weekly active users increased 20% year over year.

After the initial pop the shares cooled down to $231.89, up 4% from previous close.

Is now the time to buy Reddit? Access our full analysis report here.

What Is The Market Telling Us

Reddit’s shares are extremely volatile and have had 64 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 11 days ago when the stock gained 4.9% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.

Reddit is up 39.8% since the beginning of the year, but at $231.89 per share, it is still trading 14.3% below its 52-week high of $270.71 from September 2025. Investors who bought $1,000 worth of Reddit’s shares at the IPO in March 2024 would now be looking at an investment worth $4,597.

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