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What Does Raymond James See in Canadian Energy Stocks Like Suncor (SU)?

Suncor Energy Inc. (NYSE:SU) is one of the best TSX stocks to buy according to hedge funds. On April 20, Raymond James analysts published a note arguing that Canadian energy stocks, including Suncor Energy Inc. (NYSE:SU), have meaningfully lagged behind rising oil prices and the broader market since the Iran conflict began. This disconnect, the analysts argued, signals a buying opportunity for investors.

The firm’s analysis covered the period from February 27 to April 17. It tracked how energy equities moved relative to the oil price rally that followed the outbreak of the Iran conflict in late February. They found that despite crude surging, the stocks did not keep pace, which left a visible gap between commodity prices and equity valuations.

Raymond James found that current share prices imply a long-term WTI oil price of just $60 to $65 per barrel. The firm views this as far too conservative given the geopolitical backdrop. At the time, WTI was trading well above that range. The disconnect, in Raymond James’s view, creates an attractive entry point. As a result, the firm maintained its overweight recommendation on energy equities, which in simple terms means the firm is confident that stock prices need to catch up to where commodities are trading.

Independent of the analyst action, on April 15, Petro-Canada, a retail fuel business owned by Suncor, and WestJet announced a new loyalty program partnership that will allow Canadians to link their WestJet Rewards and Petro-Points accounts. The goal is to enable customers to earn and redeem rewards across both fuel and air travel.

Suncor said this partnership will be accessible at more than 1,500 Petro-Canada locations across Canada. It added that the partnership will give WestJet Rewards members a new everyday earning channel beyond flying, and that Petro-Points members will get a pathway into travel rewards.

Suncor Energy Inc. (NYSE:SU) is an integrated energy company. It focuses on the development and production of oil sands resources, along with offshore oil production, refining, and petroleum marketing. It extracts and upgrades bitumen into synthetic crude oil.

While we acknowledge the risk and potential of SU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SU and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best 52-Week High US Stocks to Buy and 9 Must-Buy Penny Stocks to Invest In Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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