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

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Suncor Energy (SU - Free Report) closed the most recent trading day at $42.49, moving +1.24% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.08%. At the same time, the Dow lost 0.81%, and the tech-heavy Nasdaq gained 0.22%.

Prior to today's trading, shares of the energy company had gained 22.22% over the past month. This has outpaced the Oils-Energy sector's gain of 10.73% and the S&P 500's gain of 1.03% in that time.

Wall Street will be looking for positivity from Suncor Energy as it approaches its next earnings report date. On that day, Suncor Energy is projected to report earnings of $1.60 per share, which would represent year-over-year growth of 310.26%. Our most recent consensus estimate is calling for quarterly revenue of $9.25 billion, up 24.95% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for Suncor Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Suncor Energy has a Forward P/E ratio of 8.18 right now. This represents a discount compared to its industry's average Forward P/E of 8.72.

We can also see that SU currently has a PEG ratio of 0.6. 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 industry currently had an average PEG ratio of 0.44 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 2, putting it in the top 1% 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.

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


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