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Suncor Energy (SU) Stock Sinks As Market Gains: What You Should Know

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Suncor Energy (SU - Free Report) closed at $20.61 in the latest trading session, marking a -0.72% move from the prior day. This move lagged the S&P 500's daily gain of 0.33%.

Coming into today, shares of the energy company had lost 11.31% in the past month. In that same time, the Oils-Energy sector lost 7.64%, while the S&P 500 gained 4.77%.

Investors will be hoping for strength from SU as it approaches its next earnings release. The company is expected to report EPS of $0.28, up 286.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.3 billion, up 8.96% from the year-ago period.

SU's full-year Zacks Consensus Estimates are calling for earnings of $0.95 per share and revenue of $25.68 billion. These results would represent year-over-year changes of +186.36% and +36.93%, respectively.

Investors might also notice recent changes to analyst estimates for SU. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 18.01% higher. SU is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that SU has a Forward P/E ratio of 21.97 right now. For comparison, its industry has an average Forward P/E of 12.77, which means SU is trading at a premium to the group.

We can also see that SU currently has a PEG ratio of 7.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SU's industry had an average PEG ratio of 7.32 as of yesterday's close.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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