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

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In the latest trading session, Suncor Energy (SU - Free Report) closed at $20.54, marking a +0.83% move from the previous day. This change outpaced the S&P 500's 0.18% gain on the day.

Coming into today, shares of the energy company had lost 3.18% in the past month. In that same time, the Oils-Energy sector lost 0.15%, while the S&P 500 gained 6.99%.

SU will be looking to display strength as it nears its next earnings release. On that day, SU is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 393.33%. Our most recent consensus estimate is calling for quarterly revenue of $6.3 billion, up 8.96% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.36 per share and revenue of $25.68 billion. These totals would mark changes of +223.64% and +36.93%, respectively, from last year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 43.16% higher within the past month. SU currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that SU has a Forward P/E ratio of 14.98 right now. Its industry sports an average Forward P/E of 13.39, so we one might conclude that SU is trading at a premium comparatively.

It is also worth noting that SU currently has a PEG ratio of 4.99. 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 4.99 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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