7 Undervalued Canadian Stocks To Buy According To Hedge Funds

3. Suncor Energy (NYSE:SU)  

Number of Hedge Fund Investors: 44  

Forward P/E Ratio as of September 25: 9.79  

Suncor Energy (NYSE:SU) is a Canadian integrated oil and gas company that operates in the energy sector. The company is headquartered in Calgary and is one of the largest integrated oil and gas companies in North America. Suncor Energy (NYSE:SU) is engaged in the exploration, development, and production of crude oil and natural gas, as well as the refining and marketing of petroleum products.

Suncor Energy’s (NYSE:SU) integrated business model provides a significant competitive advantage in the energy sector. The company’s diversified operations enable it to optimize its operations and reduce costs. Suncor Energy (NYSE:SU) has a large reserve base of over 7 billion barrels of oil, which provides a long-term source of production and revenue. The company’s operations are also characterized by low costs, with a corporate decline rate of just 5%.

Suncor Energy (NYSE:SU) has made significant progress in reducing its costs and improving its operational efficiency. The company has implemented various initiatives to reduce its operating expenses, including the use of advanced technologies and optimized production processes. These efforts have resulted in significant cost savings and improved profitability. In Q2, the company’s net debt decreased by $500 million and is now only $1.1 billion above its $8.0 billion target.

Suncor Energy (NYSE:SU) is trading at a forward PE of 9.79, a 14.67% discount to its sector median of 11.48. Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $44.86, which represents a 16% upside potential from its current levels. As of the second quarter, Suncor Energy’s (NYSE:SU) stock is held by 44 hedge funds with stakes worth $2.85 billion. Elliott Management is the largest shareholder in the company and owns stocks worth $2 billion as of June 30.