Suncor Energy Inc. (SU)

[OilStockReport]

Nice call on the bottom it rebounded nicely with oil prices. This becomes more attractive the higher the prices and as DD pointed out with new government things are likely to continue getting better.

Summary:

Suncor Energy Inc. (SU) is an integrated energy company involved in the development of petroleum resource basins in Canada, transportation and refining of petroleum and petrochemical products in Canada and marketing of crude oil and natural gas in Canada and internationally.

Financial highlights:

Due to its integrated structure, SU’s financial performance is directly tied to international oil prices and this has reflected in its profitability performance during the last three years when after a significant 37% drop in its 2009 earnings over 2008, SU roared its way back with the highest every profit of $ 3.6 billion in its entire history, a colossal 228% ascent (on YoY basis). And the story doesn’t end here as the company is expected to come out with yet another bumper year in 2011 i.e. an EPS growth of 82% along with a 15% growth in 2012.

In light of these expectations, the year-to-date drop of 14% in the stock's price has only polished its potential as SU is not only trading at a 27% discount in terms of price-to-earnings ratio to its closest competitor, Imperial Oil Limited (IMO), it is also trading at a steep 44% to the industry and this is in addition to a 1.4% dividend yield.