Yahoo Finance Is Suncor Energy Stock a Buy in 2024?
Written by Chris MacDonald at The Motley Fool Canada
For investors looking to invest in the Canadian market, the key focus is typically on financials, energy, and mining/resource stocks. Most investors come to the TSX for exposure to these areas, and Suncor Energy (TSX:SU) remains a top option worth considering.
The company’s stock chart above really highlights the kind of enthusiasm investors increasingly have about the Canadian energy sector. Trading right around its all-time high at the time of writing, it’s clear that Suncor’s value proposition is catching on with the market.
Let’s dive into whether Suncor deserves a spot in your portfolio right now.
Sky-high stock price
Suncor’s recent momentum has been impressive, particularly given all the volatility in energy prices in recent months. Now, geopolitical concerns have picked up, which bodes well for Suncor and its energy peers. However, it’s the company’s fundamentals that have really driven this rally. Even after surging to all-time highs recently, Suncor stock still trades around nine times earnings. That’s cheap for any company, even in the energy sector.
Notably, Suncor remains a top dividend stock as well, allowing income-focused investors to load up on shares of this oil sands giant. The company’s nearly 4% yield is also impressive, considering how far the stock has run this year.
So long as Suncor continues to see its debt load reduced (which management has been good about focusing on) and its fundamentals continue to improve, this stock is likely only headed higher over the medium term.
Bottom line
There’s a lot to like about how Suncor is positioned in the market right now. Canadian operators tend to produce lower-cost oil, which is likely to remain in high demand due to the geopolitical landscape. Until something shifts, I think Suncor Energy could be one of the safest bets in the market right now.
For those looking to lock in a 4% yield and gain exposure to a company with plenty of fundamentals-driven upside, this is a top pick in my books.
The post Is Suncor Energy Stock a Buy in 2024? appeared first on The Motley Fool Canada.
Should you invest $1,000 in Suncor Energy right now?
Before you buy stock in Suncor Energy, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Suncor Energy wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $18,271.97!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.
See the 10 stocks * Returns as of 5/21/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
2024
