TSE:SU

Suncor Energy Inc (SU.TO)

97.01
+1.25 (1.31%)
as of Sep 24, 2026, 8:00:00 pm Market Open.
1173 watching
0
HOLD

Great company. Owns CNQ instead. Incredible assets. Very defensive. More dividends and buybacks, incredible free cash flow. If you own it, consider it a long-term hold. Perfectly fine to own in the current environment.

WEAK BUY
Modelling 0% cash flow per share growth. Nice dividend. Cheap. Balance sheet fine. If you like oil, it's a great place to be. There are better places to be. If you buy it here, fine for the long term.
BUY
He's owned this many years though it's been sideways. It's better than most oil names. The upstream assets have very long reserve lives, and so don't need much sustaining capital, which is different from conventional oil producers who constantly need to drill and spend. SU buys back many shares each year. It's the best integrated oil company in Canada. They have modest growth and the stock won't skyrocket, but you can sleep well owning this.
HOLD
One of the three energy stocks he holds. A fabulously run company with great assets. The market really doesn't care that much until oil prices begin to rally again. The yield is good too and they continue to add to investor value. Yield 4.1%.
COMMENT
Strategy or option plans in Canadian energy? Canadian oil is more volatile than the overall market. Look for big oil names that are very liquid, so you can trade options. Look at Suncor for a covered call, but don't expect growth prospects in oil stocks. There'll be headwinds, namely the growth of e-cars. We won't see $100 oil again.
COMMENT

He does not own SU-T and remains underweight in energy. If the US dollar weakens, this could result in a higher oil price and good value for SU-T. There are just too many secular issues that are beyond the company's control. He owns VET-T because of its international assets.

COMMENT

Aside from Enbridge, he owns no energy, because he can't predict the price of oil due to geopolitics. If he were to buy oil, SU is one of two stocks he'd consider (and CNQ). SU is very good at capital allocation. A great production company. SU is as safe as you can get for an oil patch company.

BUY
This and CNQ-T are the two trophy stocks in Canada. The company is a cash generating machine. If you are looking for total return then stay with it. You will see good returns if you are patient.
TOP PICK
The recent retracement back towards $40 is enticing, especially ahead of the usual seasonal rally. He would love to see more buying volume coming in to confirm the timing. Yield 4.01% (Analysts’ price target is $54.24)
DON'T BUY
He holds zeo gas exploration, but if he had to own one, it would be this for its integration. The Oil Sands are a costly asset as the world moves away from fossil fuels. Oil prices may not reach the highs of a few years ago. He doesn't like commodities, because the market tells you what that commodity is worth. He doesn't like price-takers, but price-makers (like airlines).
PAST TOP PICK
(A Top Pick Jun 28/18, Down 19%) He has been disappointed. They don't have control over oil price. operationally they have grown their earnings 2% YoY and production is up 11% YoY. Their refineries are running very well. Great operator. 40 years + reserves. Best of breed integrated oil company.
PARTIAL SELL
One of the few Canadian companies he'd include in a group of oil companies, as they're so big. If you own it, be cautious because of oil prices and the slowing world economy. If you're overweight, definitely take money off. In a rebound, SU is the first place money will drift in.
DON'T BUY

There is a black cloud over the energy sector. Until the market starts to care about this sector, he is avoiding the energy market. It seems like real value does not matter any more in this sector. He may look at something with a higher yield such as VET

COMMENT
He is bearish on commodities and has been for several years now. Last few years has been considerable underweight to commodities. He has held Suncor however, to get exposure to energy. This is a conservative way if looking to have exposure to energy. Again, need to look at over all portfolio from a sector perspective.
TOP PICK
Integrated is helpful as it is kind of a pass-through. Downside protection if oil goes down. Like a billion dollar in free cash flow. P/E is 12 and dividend yield is 4%. Toe in the water in the energy sector but in a chicken kind of way. (Analysts’ price target is $54.50)
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