Suncor Energy (SU +0.82%) has benefited from favorable economic conditions this year, but it's the Canadian company's standout operational improvements that have helped its stock shoot up 30% in 2026.
Suncor's CEO, Rich Kruger, has taken a disciplined approach to get the energy producer's financials and margins in shape. This has resulted in more cash returned to shareholders and the company hitting its three-year Investor Day targets an entire year early.
NYSE: SU
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If oil prices continue to fall, Suncor's integrated business can help offset a portion of the volatility. Ultimately, it is better positioned than some other competitors if a real oil downturn happens.
It's easy to think that an energy company the size of Suncor gaining 30% in less than a calendar year means most of the run is already over. However, there's still plenty of potential, particularly for income investors.
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The stock currently offers a $0.43 quarterly dividend, yielding nearly 3%. Even with the 30% rise in price this year, Suncor's forward price-to-earnings ratio (P/E) is still around 9, below the sector's average of around 13. The analysts' average price target for Suncor is $63 per share, which the stock was still below at the time of this writing.
A solid yield and fair price, combined with operational efficiency and improved leadership, are why I'm bullish on Suncor Energy for the long term, no matter which direction oil prices go.
