Suncor Energy Is Up 30% This Year. Is It Still Worth Buying?
Key Points
The Canadian energy company reported record upstream production.
Suncor achieved 875,000 barrels per day in the first quarter of 2026.
The stock yields nearly 3%, and management is executing a turnaround.
- 10 stocks we like better than Suncor Energy ›
Suncor Energy (NYSE: SU) 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.
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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.
Image source: Getty Images.
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.
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Catie Hogan has positions in Suncor Energy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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