Suncor (TSX:SU)(NYSE:SU) is a Calgary-based integrated energy company. It is one of the largest in Canada, becoming a symbol for the success of the oil sands. Shares of this top energy stock have climbed 27% in 2022 as of close on December 13. However, the stock has plunged 12% over the past month.
Like its peers, Suncor stock gorged on soaring oil and gas prices in the first half of 2022. That momentum died in the spring and summer, bringing Suncor and its peers back to earth. The oil and gas industry continued to feel pressure from OPEC production hikes and the creeping shadow of an economic recession in 2023.
Fortunately, this has created a fantastic buy-low opportunity for Canadian investors. Suncor is an energy heavyweight that you can trust for the long haul. In the third quarter of fiscal 2022, the company delivered total upstream production of 724,100 barrels of oil equivalent per day (boepd) – up from 698,000 boepd in Q3 FY2021. Meanwhile, adjusted funds from operations (AFFO) jumped to $4.47 billion or $3.28 per common share compared to $2.64 billion or $1.79 per common share in the previous year.
This top energy stock currently possesses a very attractive price-to-earnings ratio of 7.6. Meanwhile, it last had a Relative Strength Index (RSI) of 39. Suncor fell into technically oversold territory for over a week in the first half of December. Investors still have a chance to jump on Suncor at a big discount. Better yet, it offers a quarterly dividend of $0.52 per share. That represents a very solid 4.9% yield.
