Traders Are Piling Into Suncor Call Options—Should You?

Core Viewpoint - The current environment presents both challenges and opportunities for energy stocks, particularly Suncor Energy, which is less exposed to U.S. tariffs and has strong financial fundamentals [1][3][10]. Group 1: Suncor Energy Overview - Suncor Energy's stock is currently priced at $39.99, with a 52-week range between $30.79 and $43.48, and a dividend yield of 4.13% [2]. - The company has maintained strong investor confidence, trading around 95% of its 52-week highs, indicating a solid financial foundation [2]. - Recent call option activity shows a significant increase, with 28,315 call options purchased in October 2025, reflecting high confidence in Suncor's near-term potential [7]. Group 2: Financial Performance and Projections - Suncor's capital expenditures are down while production numbers have risen, with expectations for continued volume expansion through Q4 2025 [4]. - Analysts project a nearly 60% upside for Suncor's stock, with a 12-month price target of $65.00, indicating a 62.57% upside from the current price [8]. - The consensus EPS forecast for Q3 2025 is $1.00, nearly doubling from the current reported 51 cents, suggesting strong growth potential [9]. Group 3: Market Position and Valuation - Suncor's P/E ratio stands at 12.32, significantly lower than the energy sector average of 76.5, indicating it is undervalued compared to peers [10]. - The reduced tariff exposure for Suncor, with 60% to 65% of its oil staying within Canada or exported elsewhere, mitigates earnings risks associated with U.S.-Canada tariffs [3][10]. - With reduced spending, rising output, and potential for increased shareholder returns, Suncor is positioned to outperform while other stocks may lag [11].