5 Best Affordable Energy Stocks to Buy Now

2. Suncor Energy Inc. (NYSE:SU)

Number of Hedge Fund Holders: 45  

Share Price as of December 1: $32.87

Suncor Energy Inc. (NYSE:SU) operates as an integrated energy company. On October 26, Suncor Energy said that it agreed to buy an additional 21.3% stake in the Fort Hills oil sands project and associated sales and logistic agreements from Teck Resources for C$1 billion in cash.

On November 21, Credit Suisse analyst William Janela maintained an Outperform rating on Suncor Energy Inc. (NYSE:SU) stock and lowered the price target to C$60 from C$63.  

At the end of the third quarter of 2022, 45 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Suncor Energy Inc. (NYSE:SU), compared to 47 in the preceding quarter worth $2.4 billion. 

In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Suncor Energy Inc. (NYSE:SU) was one of them. Here is what the fund said:

“Also, within the structural bucket, we added to our commodity exposure with the purchase of Suncor Energy (NYSE:SU). Suncor, a past holding, is a Canadian integrated oil company where we capitalized on an attractive valuation due to a COVID-19-induced slowdown. We expect a recovery in oil demand and strong pricing will result in faster-than-expected free cash flow growth and financial deleveraging.

The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out.”