Suncor Energy Inc. (SU) is a Canadian integrated energy company based in Calgary, Alberta. It specializes in the production of synthetic crude from oil sands.
Suncor Energy ‘s shares fell through support on fears of the coronavirus Covid-19 pandemic environment but the recent sell-off created an attractive opportunity to invest in this stock. At its current share price, Suncor Energy could be an excellent long-term investment with a very generous yield and solid growth prospects.
The company’s revenue increased in 2019 to 29.5 billion USD from 28.2 billion in 2018 and the growth projects will ensure that the numbers will be moving up in the future. It is also important to mention that the net income in 2019 was 2.2 billion USD while the net income in 2018 was 2.4 billion USD. Another important information for potential investors is the fact that Berkshire Hathaway increased its position in Suncor Energy in 2019.
Berkshire owned 15,019,031 shares as of the end of the 2019 year, according to the holding company’s most recent filing with the Securities and Exchange Commission. This means Berkshire added around 5,000 new shares to its Suncor holding from the 2018 year. Berkshire Hathaway has paid between $28-$33 per share during this period.
When we take a look at the one-year chart, we can see that the price dropped from 34 USD to 10 USD and started to raise. On this chart, I marked resistance and support levels. Supports levels are 14 USD and 10 USD, 20 USD and 26 USD represent the resistance levels. If the price jumps above 20 USD it would be a “BUY” signal and we have the open way to 26 USD. Rising above 30 USD supports the continuation of the bullish trend overview efficiently for the upcoming period. If the price falls, every price in a range from 14 USD – 10 USD could be a very good opportunity to invest in Suncor Energy.
Conclusion: Suncor Energy (SU) A Worthy Investment?
Shares of SU, overall, appear to be a very good investment option, with Wall Street analysts expecting its price to rise considerably in the next several years. Suncor Energy’s shares fell through support on fears of the coronavirus Covid-19 pandemic environment but the recent sell-off created an attractive opportunity to invest in this stock. The majority of the metrics point to this investment being highly attractive.
