Nvidia vs SuncorNo question, EV adaption market share is growing and will only get higher.
At the same time, with all these new EV's on the road, worldwide oil demand (according to EIA) is also growing, crossing over 100M bbls/day for 2023 and forecasted for a few million more for 2024. Some experts say it still has a way to go before it hits peak demand (albeit at a slower pace).
No one here I read has suggested SU is a growth stock for the future and its wise to go all in.
A poster here mentioned a few days ago he was invested in SU as strictly a value play.
I believe most here are invested in the name for same reason.
Let's compare it the grandaddy of all growth stocks right now, Nvidia.
Let's compare market caps to profits/potential growth profits.
Nvidia has a current market cap of $1 Trillion, SU market cap is $50B
Nvidia market cap = market cap of 20 Suncors combined!
Nvidia reported net profit Q1 of $2B on sales $7B.
SU also reported net profit of $2B (on much higher revenue but let's just talk profit).
If you take that SU Q1 profit and X it by 20 Suncors you get $40B profit (market caps being equal).
So for 4 Qtrs, assuming no growth at all, 20 Suncors would bring in $160B profit (again, market caps being equal).
Nvidia has forecasted Q2 revenue to jump to $11B
Lets assume Nvidia doubles their profits evey Qtr for 4 Qtrs, you get $2B +$4B + $8 +$16B = $30B profit.
Now what happens to that $1 Trillion+ evaluation IF they forecast an upcoming Qtr to be flat or worse still, a little lower than last Qtr.