Stock of the Day

June 21, 2022

Suncor Energy (SU)

$39.46
-$0.71 (-1.8%)
Market Cap: $50.00B

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.:

  • Recent upgrades from multiple analysts, including a "strong buy" rating from Tudor, Pickering, Holt & Co., indicate growing confidence in the company's performance.
  • The current stock price is $39.81, which is below the average target price of $58.00, suggesting potential for price appreciation.
  • Suncor Energy Inc. reported a quarterly EPS of $0.89, exceeding the consensus estimate, which reflects strong operational performance.
  • The company has a solid market capitalization of approximately $49.54 billion, indicating stability and a significant presence in the energy sector.
  • With a dividend yield of 4.01% and a payout ratio of 46.67%, Suncor Energy Inc. offers attractive income potential for investors seeking dividends.

Suncor Energy Bear Case

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

  • The stock has experienced a slight decline of 0.1% recently, which may indicate short-term volatility and investor uncertainty.
  • Despite positive ratings, three analysts still maintain a "hold" rating, suggesting caution among some market participants.
  • The company has a relatively high P/E ratio of 11.56, which could indicate that the stock is overvalued compared to its earnings.
  • Recent reports show that AustralianSuper Pty Ltd reduced its holdings in Suncor Energy Inc., which may signal a lack of confidence from institutional investors.
  • The company has a beta of 1.12, indicating that its stock price is more volatile than the market, which could pose risks for conservative investors.

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