7 Cheap Canadian Stocks To Invest In

3. Suncor Energy (NYSE:SU)  

Upside Potential: 20.88%  

Forward P/E Ratio as of September 28: 9.45

Number of Hedge Fund Investors: 44

Suncor Energy (NYSE:SU) is a leading integrated energy company based in Alberta, Canada. Suncor Energy (NYSE:SU) is also engaged in the exploration, development, and production of crude oil and natural gas, along with refining and marketing of petroleum products.

Suncor Energy’s (NYSE:SU) integrated business model provides a substantial competitive edge in the energy sector, allowing it to streamline its operations and minimize costs. The company owns a reserve base of over 7 billion barrels of oil, which ensures a reliable long-term source of production and revenue. Additionally, Suncor Energy (NYSE:SU) is known for its low costs, with a corporate decline rate of 5%.

Suncor Energy (NYSE:SU) has achieved significant milestones in reducing its costs and enhancing operational efficiency. The company has implemented various initiatives to reduce operating expenses, including the adoption of advanced technologies and optimized production processes. These efforts have yielded substantial cost savings and improved profitability. Notably, in Q2, the company’s net debt decreased by $500 million, bringing it to $1.1 billion above its target of $8.0 billion.

Suncor Energy (NYSE:SU) is trading at a forward PE of 9.45, a 15.85% discount to its sector median of 11.22. Analysts expect the company to increase its earnings by 3% this year and have a consensus on the stock’s Buy rating, setting an average share price target at $44.96, which represents a 20.88% upside potential from its current level.