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

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Suncor Energy (SU - Free Report) closed the most recent trading day at $35.57, moving +1.43% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.4%.

Prior to today's trading, shares of the energy company had lost 13.24% over the past month. This has was narrower than the Oils-Energy sector's loss of 14.41% and lagged the S&P 500's loss of 8.3% 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 $1.38 per share. This would mark year-over-year growth of 253.85%. Meanwhile, our latest consensus estimate is calling for revenue of $8.83 billion, up 19.26% from the prior-year quarter.

SU's full-year Zacks Consensus Estimates are calling for earnings of $6.03 per share and revenue of $41.93 billion. These results would represent year-over-year changes of +195.59% and +34.45%, respectively.

It is also important to note the recent changes to analyst estimates for Suncor Energy. 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.

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.

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 17.45% higher within the past month. Suncor Energy currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Suncor Energy's current valuation metrics, including its Forward P/E ratio of 5.82. This valuation marks a discount compared to its industry's average Forward P/E of 6.16.

Meanwhile, SU's PEG ratio is currently 1.11. 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 0.66 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 4, 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.


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