Suncor: Long-Term Potential, But Its Stock May Be Range-Bound For A While


  • Suncor’s stock price is currently range-bound, in correlation with the oil market, trading at $30-$40/share, as oil trades in the $60-$90/barrel range.
  • In the shorter term there is a great deal of global oil supply/demand balance uncertainty, which could cause the market to sink, or break past the upside of the range.
  • For the longer term, Suncor is a must-own for me, due to its ample upstream reserves, and production increase potential, within a world that is seeing dwindling oil exploration results.
  • I plan to hold within the current range of $30-$40/share, sell incrementally once the price rises above $40/share, and buy in case it drops below $30/share while maintaining a significant position in Suncor stock for the foreseeable future.

Suncor Energy


Investment thesis: Suncor’s (NYSE:SU) stock price seems range-bound in the shorter term, in the $30-$40/share range for the past two years, and it correlates with oil prices hovering in the $60-$90/barrel price range for the same period. I expect this correlation

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SU, CNQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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