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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 $20.93, marking a -0.52% move from the previous day. This change lagged the S&P 500's 0.2% gain on the day.

Heading into today, shares of the energy company had lost 14.82% over the past month, lagging the Oils-Energy sector's loss of 7.15% and the S&P 500's gain of 3.28% in that time.

SU will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2021. In that report, analysts expect SU to post earnings of $0.36 per share. This would mark year-over-year growth of 150.7%. Meanwhile, our latest consensus estimate is calling for revenue of $6.81 billion, up 122.51% from the prior-year quarter.

SU's full-year Zacks Consensus Estimates are calling for earnings of $2 per share and revenue of $30.25 billion. These results would represent year-over-year changes of +281.82% and +61.34%, respectively.

Investors might also notice recent changes to analyst estimates for SU. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate has moved 5.21% lower within the past month. SU is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that SU has a Forward P/E ratio of 10.52 right now. For comparison, its industry has an average Forward P/E of 10.52, which means SU is trading at a no noticeable deviation to the group.

We can also see that SU currently has a PEG ratio of 3.51. 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. The Oil and Gas - Integrated - Canadian was holding an average PEG ratio of 3.51 at yesterday's closing price.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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