Suncor Energy is a buy, but be prepared to turn if oil prices peak, Jim Cramer says

Suncor Energy is a buy, but be prepared to turn if oil prices peak, Jim Cramer says


CNBC’s Jim Cramer on Friday advised investors to pick up shares of Canadian oil producer Suncor Energy, but only if they’re confident oil prices will stay elevated.

Cramer’s comments come after activist investment firm Elliott Management, which holds a 3.4% stake in Suncor, called for the firm to shuffle its management and take other measures to improve its performance.

“I think Suncor’s future is less about this activist campaign and more about where the price of crude might be headed. If you think it’s going to stay elevated, this could be just an absolutely terrific stock because the oil sands can generate tremendous earnings growth,” the “Mad Money” host said.

“However, indeed, if you believe oil will peak soon and head meaningfully lower, this stock’s going to be a dog and it won’t matter what changes [Elliot Management] make,” he added.

Shares of Suncor fell 2.58% on Friday but reached a new 52-week high earlier in the day.

Elliott Management cited “missed production goals, high costs, and, tragically, a number of employee fatalities and other safety incidents” in its letter.

Suncor responded to Elliott’s letter stating it will review the investment firm’s recommendations.

“Whether you look at it from a financial perspective or a purely human perspective, this is not a well-run enterprise,” Cramer said of Suncor’s track record.

However, he said he believes the company has more room to run since the price of crude is up, meaning the company could become a high-performer if it takes Elliott’s urgings under consideration.

Brent crude futures settled at $109.34 on Friday while U.S. West Texas Intermediate crude settled at $104.69.

“I think the stock jumped … yesterday because Wall Street’s confident Elliott can push Suncor’s board to unlock value,” Cramer said. “Here’s some free advice to Suncor’s directors: Work with these guys.”

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer Twitter – Facebook – Instagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]





Source

This is why Jamie Dimon is so gloomy on the economy
Business

This is why Jamie Dimon is so gloomy on the economy

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The more Jamie Dimon worries, the better his bank seems to do. As JPMorgan […]

Read More
Summer rentals in the Hamptons are down 30%
Business

Summer rentals in the Hamptons are down 30%

Key Points Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out […]

Read More
Costco tops earnings and revenue estimates as sales jump 8%
Business

Costco tops earnings and revenue estimates as sales jump 8%

The sign on the side of a Costco is seen in Hawthorne, California, on April 4, 2025. Jay L Clendenin | Getty Images Shares of Costco fell slightly on Thursday, despite the warehouse club posting quarterly earnings and revenue that topped estimates and reporting 8% year-over-year sales gains. Here’s how the warehouse club retailer did […]

Read More