Is Cenovus Energy (CVE) One of the Must-Buy US Stocks After S&P Upgrades Its Outlook?

Cenovus Energy Inc. (NYSE:CVE) is one of the must-buy US stocks to buy right now. On March 25, S&P Global Ratings revised its outlook on Cenovus Energy Inc. (NYSE:CVE) from negative to stable, while affirming its BBB issuer credit and unsecured debt ratings. The ratings giant cited a meaningfully improved financial risk profile built on operational progress, asset disposals, and stronger oil price assumptions.

One of the key factors that S&P considered was Cenovus’s closing of its C$8.4 billion acquisition of MEG Energy in November 2025. The ratings firm also noted that Cenovus achieved first production from three of its five key growth projects in the second half of 2025 and sold its non-operated refinery stakes. Cenovus did all these while staying committed to its deleveraging targets, S&P noted.

The other key input into S&P’s revised outlook was the agency’s own updated oil price forecast. On March 16, S&P raised its West Texas Intermediate, or WTI, crude oil price assumption by $15 per barrel to $75/bbl for the remainder of 2026. This action was supported by the ongoing conflict in the Middle East, which the agency said is a key tailwind that meaningfully strengthened Cenovus’ cash flow projections.

Those inputs put together, S&P now expects Cenovus’ funds from operations, or FFO, to debt to land in the 70%-80% range over the next two years. The metric should also remain comfortably above 45% even under midcycle commodity assumptions, the agency said.

Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company engaged in the production, refining, and marketing of crude oil, natural gas, and related products. It produces crude oil and natural gas from oil sands and conventional assets, and refines these into products such as gasoline, diesel, and jet fuel through its downstream operations.

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