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.
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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.
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