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

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In the latest trading session, Suncor Energy (SU - Free Report) closed at $23.93, marking a -1.89% move from the previous day. This change lagged the S&P 500's daily gain of 0.75%.

Coming into today, shares of the energy company had lost 6.12% in the past month. In that same time, the Oils-Energy sector gained 0.89%, while the S&P 500 gained 3.52%.

Wall Street will be looking for positivity from SU as it approaches its next earnings report date. On that day, SU is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 164.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.12 billion, up 132.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.11 per share and revenue of $29.86 billion. These totals would mark changes of +291.82% and +59.22%, respectively, from last year.

Any recent changes to analyst estimates for SU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 31.06% higher. SU is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, SU is currently trading at a Forward P/E ratio of 11.34. Its industry sports an average Forward P/E of 11.17, so we one might conclude that SU is trading at a premium comparatively.

Investors should also note that SU has a PEG ratio of 3.78 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SU's industry had an average PEG ratio of 3.78 as of yesterday's close.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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