The big money when investing is when you can pick the beaten down stocks that will come back in a few years and net you a hefty profit. The great Peter Lynch called these “triplebaggers” as you triple your initial investment. One beaten down stock to look into is Cenovus Energy (NYSE: CVE).

There are many factors that have caused the stock price to plummet to its current sub $10 stock price, many of which I will get into later in this post. But the company has some things going for it and if it can put it all together, you should be handsomely rewarded with a much higher stock price in the coming years.

Let’s dig into Cenovus Energy and see what the company is all about.

Who Is Cenovus Energy?

Cenovus Energy is an oil and gas producer that focuses on extracting oil from the tar sands in Canada. They came to being in 2009 when Encana Corporation split into two companies.

For the eight years, Cenovus has been in business, it has been a rocky road. Oil prices boomed and then crashed, causing issues with most oil stocks.

The company is regarded as one of the best, if not the best player in the industry and they have the best technology for extracting oil from the tar sands than any other company.

Cenovus Financials

When the company reported earnings per share in April, they hit estimates of a loss of $0.05. But they are expecting earnings to grow by 203% for full year 2017 and by 28% in 2018.

This growth is coming off the heels of some bad earnings reports back in 2016 when oil prices dropped, causing the company to slow their growth.

What Does The Future Hold?

The future looks bright for Cenovus Energy. Earlier this year, the company bought 50% of the tar sands assets of ConocoPhillips for $13.3 billion and will be issuing 208 million new shares to ConocoPhillips later this year.

But as great as this deal is, it is what it causing the stock price to remain low. Analysts and investors are nervous about the large debt the company took on to make this deal.