In this piece we will take a look at the five best stocks under $50. For more stocks, head on to 12 Best Stocks Under $50.
5. Suncor Energy Inc. (NYSE:SU)
Share Price as of July 21, 2022: $31.37
Number of Hedge Fund Holders: 41
Suncor Energy Inc. (NYSE:SU) is a Canadian oil company headquartered in Calgary. The firm engages in the exploration, acquisition, and selling of crude oil, petroleum products, diesel, and diesel dilutant. It also has wind power generation facilities. Additionally, it also markets natural gas and other power products.
Suncor Energy Inc. (NYSE:SU), like other Canadian energy companies, is expected to pay out at least 50% of its cash flows back to investors in the form of dividends and share repurchase programs next year. Another benefit for the company is that its oil fields have long life and set to benefit it for years to come. Additionally, the company has the initiatives in place to both retire its debt and return cash to investors as noted earlier. As a cool cherry on top, Suncor Energy Inc. (NYSE:SU) has some of the highest dividend yields out there, with a quarterly per share dividend of 37 cents resulting in a 4.62% dividend yield.
Credit Suisse kept a CAD$63 price target for the company in July 2022, citing optimism for its recent deal with an activist investor as it outlined that the affair can improve the oil company’s safety record. Insider Monkey took a look at 912 hedge fund portfolios for this year’s first quarter and found out that 41 had bought Suncor Energy Inc. (NYSE:SU)’s shares.
Suncor Energy Inc. (NYSE:SU)’s largest investor is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital which owns 16.8 million shares that are worth $548 million.
“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 attractive valuation due to a COVID-19-induced slowdown. We expect 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.”