Stock of the Day

Suncor Energy (SU)

$39.95

+$0.91 (+2.3%)

Market Cap: $48.70B

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments.

The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.

Suncor Energy Bull Case

Here are some ways that investors could benefit from investing in Suncor Energy Inc.:

• The current stock price is around C$49.37, which is below its 200-day moving average of C$52.75, potentially indicating a buying opportunity for investors looking for undervalued stocks.
• Suncor Energy Inc. has a strong market capitalization of approximately C$61.34 billion, suggesting a solid position in the energy sector and potential for growth.
• The company recently announced a quarterly dividend of $0.57, translating to an annualized dividend yield of 4.66%, which can provide a steady income stream for investors.
• Analysts have a consensus rating of "Moderate Buy" for Suncor Energy Inc., with an average price target of C$62.58, indicating positive sentiment and potential for price appreciation.
• Recent upgrades from various brokerages, including a shift to a "strong-buy" rating by Tudor Pickering, reflect growing confidence in the company's future performance.

Suncor Energy Bear Case

Investors should be bearish about investing in Suncor Energy Inc. for these reasons:

• The stock has recently traded down about 1.0%, which may indicate short-term volatility and uncertainty in the market.
• AGF Management Ltd. reduced its stake in Suncor Energy Inc. by 19.0%, which could signal a lack of confidence from institutional investors.
• The company has a relatively high debt-to-equity ratio of 33.35, suggesting that it relies significantly on debt financing, which can be risky in fluctuating market conditions.
• Despite a strong market cap, the price-to-earnings ratio of 7.72 may indicate that the stock is undervalued, but it could also reflect concerns about future earnings growth.
• Recent downgrades from some analysts, including a shift from "buy" to "hold," may suggest caution regarding the stock's near-term performance.

Recent News

• Suncor Energy (SU) Receives a Hold from Jefferies (theglobeandmail.com)
• Suncor Energy Inc. stock rises Wednesday, outperforms market (marketwatch.com)
• Suncor Energy Inc. stock falls Tuesday, still outperforms market (marketwatch.com)
• Energy Bulls: 3 TSX Dividend Stocks to Own for Years to Come (msn.com)