Energy stocks are still trading higher when you look at the 200-day MA. Still likes and owns. Still sees very steady global oil demand, continues to outstrip supply. In 2022, US drew down 37% from reserves, which will need to be replenished. Oil inventories are generally low. Companies are focused on enhancing shareholder value. Industry-wide underinvestment. China's reopening can be a catalyst as well. Over 12-24 months, he still likes the energy sector. 200-day MA still moving along nicely, along with the price still moving higher. Still has potential. With the macro economy looking better, interest rate action, and China reopening, he'd hang on. Yield is 4.8%.
Hold or buy, not sell. The price of oil will stay the same or rise. The transition to renewables will take time, so oil will stay a while. Suncor will reap the benefits of higher oil. Caveat: the health and record of the CEO. They have a nice plan to return capital to shareholders.
Less optimistic about energy in the near term. Had a good run, now consolidating and that's his concern, it's dead money. Reward/risk ratio is not compelling.
Stockchase Research Editor: Michael O'Reilly We again reiterate SU as a TOP PICK. The stock price is down on news of its refinery in Colorado being down for several weeks due to fires. Recently reported earnings show cash reserves have surged back above $2.2 billion -- the highest level since 2018 -- while it is retiring debt and buying back shares. We continue to recommend a stop-loss at $36, looking to achieve $50 -- upside potential of 20%. Yield 4.5% (Analysts’ price target is $50.06)
Large reserve buildup and strong balance sheet.
Recently struggles creating buying opportunity for investors.
If own shares, keep them.
Too volatile for defensive investors.
Very good price for long term investors.
Stockchase Research Editor: Michael O'Reilly We reiterate SU as a TOP PICK. Recent reported earnings beat expectations as revenues increased 42% thanks to higher production and higher underlying oil prices. Production should continue to rise as Syncrude operations return to normal. Analysts expect earnings growth to average over 30% annually over the next five years. It trades at under 8x earnings and 1.5x book. We recommend keeping the stop-loss at $36, looking to achieve $50 -- upside over 20%. Yield 5.2% (Analysts’ price target is $50.12)
Two years ago was adding energy.
Believes new cycle is starting, so not constructive on energy.
Energy gains have already been prices.
Geopolitical conflict will end (oil prices will fall).
Blue chip Canadian energy. All about generating maximum return for shareholders. A good one to own for the long term. Fortunate to own Petro-Can downstream, with plans to expand EV capabilities and convenience store options. Despite frustrations, energy markets seem strong right now. Impressive dividend yield.
Impressive dividends and buybacks from the sector this year, likely to continue. Supply/demand dynamic still very tight, should be positive for free cashflow. Dividend is more than safe, should grow. Good to own for the next 12 months.
(A Top Pick Nov 24/21, Up 48%) Likes energy space. Dividend increase of 12%, doubled share repurchase plan. Potential sale of Petro-Can could be a catalyst. Long term, demand will remain steady with supply weak. Fantastic 15% free cashflow yield. Yield is 4.3%.
Does not own shares in energy as feels the sector is risky.
Suncor a good business with long term reserve life index.
Recent dividend increase good for share holders.
Recent safety issues will hopefully be fixed.
Don't need to go internationally to own oil companies. Oil will be tighter than people think. SU is one to own. After 2020, they all cut capex, paid down debt, bought back stock, increased dividends. This will continue. Will continue to throw off lots of free cash.
More upside? Attractive price. Oil & gas stocks haven't run up as much as they ought, given the free cashflow. Management says once debt down to 9B, 100% of free cashflow will be used to buy back stock, after dividends. Decades of reserves in oil sands.
Sell CNQ, buy SU? CNQ has a model price of $135.07, 65% upside. Where were investors 2 years ago, when they could have bought these stocks for pennies? SU doesn't have as high a valuation, has 100% upside. Neither is at a level he'd buy today, he'd want meaningful pullbacks.
Suncor Energy Inc (SU.TO) Frequently Asked Questions
What is Suncor Energy Inc stock symbol?
Suncor Energy Inc is a Canadian stock, trading under the symbol SU.TO (previously SU-T on Stockchase) on the Toronto Stock Exchange (SU-CT). It is usually referred to as TSX:SU or SU.TO