5 Most Undervalued Foreign Stocks To Buy According To Hedge Funds

4. Suncor Energy Inc. (NYSE:SU)

Number of Hedge Fund Holders: 45

P/E Ratio as of January 23: 8.15

Suncor Energy Inc. (NYSE:SU) is a Canadian integrated energy company that acquires, develops, produces, transports, refines, and markets crude oil, petroleum, and petrochemical products in Canada and internationally. On December 7, Suncor Energy Inc. (NYSE:SU) said it will aim for an early 2023 resumption of production in the Terra Nova oilfield off the coast of Newfoundland, as work on revamped Terra Nova floating production, storage, and offloading vessels has taken longer than planned. It is one of the most undervalued foreign stocks to buy according to hedge funds. 

On January 17, Scotiabank analyst Jason Bouvier maintained an Outperform rating on Suncor Energy Inc. (NYSE:SU) but lowered the firm’s price target on the shares to C$50 from C$53.

According to Insider Monkey’s third quarter database, 45 hedge funds were long Suncor Energy Inc. (NYSE:SU), compared to 47 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the leading stakeholder of the company, with approximately 20 million shares worth $556.5 million. 

Here is what ClearBridge Investments International Growth ADR Strategy has to say about Suncor Energy Inc. (NYSE:SU) in its Q1 2022 investor letter: 

“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.”