Back to top

Image: Bigstock

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

Read MoreHide Full Article

Suncor Energy (SU - Free Report) closed the most recent trading day at $30.84, moving -1.53% from the previous trading session. This move lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 2.14%.

Heading into today, shares of the energy company had gained 0.87% over the past month, lagging the Oils-Energy sector's gain of 4.67% and the S&P 500's gain of 5.1% in that time.

Investors will be hoping for strength from Suncor Energy as it approaches its next earnings release. In that report, analysts expect Suncor Energy to post earnings of $0.93 per share. This would mark a year-over-year decline of 38.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.77 billion, down 26.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.95 per share and revenue of $32.27 billion, which would represent changes of -38.47% and -28.45%, respectively, from the prior year.

Any recent changes to analyst estimates for Suncor Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 2.05% lower within the past month. Suncor Energy is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Suncor Energy is currently trading at a Forward P/E ratio of 7.94. Its industry sports an average Forward P/E of 8.67, so we one might conclude that Suncor Energy is trading at a discount comparatively.

Investors should also note that SU has a PEG ratio of 0.67 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. SU's industry had an average PEG ratio of 0.5 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 62, putting it in the top 25% 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.


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