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Suncor Energy (SU) Dips More Than Broader Markets: What You Should Know

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Suncor Energy (SU - Free Report) closed at $24.47 in the latest trading session, marking a -1.25% move from the prior day. This move lagged the S&P 500's daily loss of 0.72%.

Prior to today's trading, shares of the energy company had lost 4.25% over the past month. This has lagged the Oils-Energy sector's loss of 2.4% and the S&P 500's gain of 0.11% in that time.

Suncor Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Suncor Energy to post earnings of $0.96 per share. This would mark year-over-year growth of 1471.43%. Meanwhile, our latest consensus estimate is calling for revenue of $9.89 billion, up 95.46% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.40 per share and revenue of $31.24 billion. These totals would mark changes of +318.18% and +66.57%, respectively, from last year.

Any recent changes to analyst estimates for Suncor Energy should also be noted by investors. 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Suncor Energy is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Suncor Energy's current valuation metrics, including its Forward P/E ratio of 10.32. This valuation marks a discount compared to its industry's average Forward P/E of 11.43.

Investors should also note that SU has a PEG ratio of 3.44 right now. 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. Oil and Gas - Integrated - Canadian stocks are, on average, holding a PEG ratio of 3.44 based on yesterday's closing prices.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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