Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch

4. Suncor Energy Inc. (NYSE:SU)

Number of Hedge Fund Holders: 44

Cramer expressed hesitation regarding the energy industry. Disccussing Suncor Energy Inc. (NYSE:SU), he remarked:

“Well, you know what? There’s another time when energy wasn’t so bad that I would say Suncore, 4% yield, let’s give it a shot. No shots are being given in this industry. I can’t do that.”

Suncor Energy (NYSE:SU) is an integrated energy company that explores, develops, and produces oil and gas products, while also refining crude oil and managing the distribution and marketing of energy products. According to Reuters on October 22, Elliott Investment Management has significantly increased its investment in the company stock, raising its stake to nearly $3 billion from approximately $1.6 billion.

It shows the firm’s confidence in the potential for improved share prices and its ongoing advocacy for changes within the company, including board refreshment and management restructuring, which were initiated two years ago. Portfolio manager Mike Tomkins highlighted these developments during his remarks at the 13D Monitor Active-Passive Investor Summit.

On September 16, Morgan Stanley analyst Devin McDermott lowered the price target on Suncor Energy (NYSE:SU) to C$55 from C$57 and kept an Overweight rating. According to the firm, the energy sector has underperformed the market by 10% in the third quarter, influenced by declining oil prices, slowing inflation, and the prospect of interest rate cuts, which pose challenges to performance.

As a result, Morgan Stanley has adopted a selective approach, favoring defensive positions in midstream and major energy sectors, with a preference for gas over oil in exploration and production.