Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Suncor Energy (SU - Free Report) closed at $40.42, marking a -1.27% move from the previous day. This change lagged the S&P 500's daily gain of 1.84%. At the same time, the Dow added 1.33%, and the tech-heavy Nasdaq gained 0.53%.

Heading into today, shares of the energy company had gained 9.49% over the past month, lagging the Oils-Energy sector's gain of 14.09% and outpacing the S&P 500's loss of 0.5% in that time.

Investors will be hoping for strength from Suncor Energy as it approaches its next earnings release. The company is expected to report EPS of $1.60, up 310.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.25 billion, up 24.95% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.13 per share and revenue of $37.37 billion, which would represent changes of +151.47% and +19.84%, respectively, from the prior year.

Any recent changes to analyst estimates for Suncor Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.92% higher. Suncor Energy is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Suncor Energy has a Forward P/E ratio of 7.98 right now. Its industry sports an average Forward P/E of 8.45, so we one might conclude that Suncor Energy is trading at a discount comparatively.

Meanwhile, SU's PEG ratio is currently 0.59. 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. The Oil and Gas - Integrated - Canadian was holding an average PEG ratio of 0.43 at yesterday's closing price.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% 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.

To follow SU in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


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

Published in