Back to top

Image: Bigstock

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

Read MoreHide Full Article

Suncor Energy (SU - Free Report) closed at $20.81 in the latest trading session, marking a -0.57% move from the prior day. This change lagged the S&P 500's daily gain of 1.02%.

Coming into today, shares of the energy company had lost 15.91% in the past month. In that same time, the Oils-Energy sector lost 8.32%, while the S&P 500 gained 3.01%.

SU will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2021. The company is expected to report EPS of $0.36, up 150.7% from the prior-year quarter. 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 should also note any recent changes to analyst estimates for SU. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.21% lower. SU is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that SU has a Forward P/E ratio of 10.47 right now. For comparison, its industry has an average Forward P/E of 10.47, which means SU is trading at a no noticeable deviation to the group.

Investors should also note that SU has a PEG ratio of 3.49 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. Oil and Gas - Integrated - Canadian stocks are, on average, holding a PEG ratio of 3.49 based on yesterday's closing prices.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Suncor Energy Inc. (SU) - free report >>

Published in