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Is Suncor Energy (SU) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Suncor Energy (SU - Free Report) . SU is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that SU has a P/B ratio of 1.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.56. Over the past 12 months, SU's P/B has been as high as 1.68 and as low as 1.22, with a median of 1.40.
Finally, investors will want to recognize that SU has a P/CF ratio of 3.95. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SU's P/CF compares to its industry's average P/CF of 4.71. SU's P/CF has been as high as 4.15 and as low as 2.82, with a median of 3.31, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Suncor Energy is likely undervalued currently. And when considering the strength of its earnings outlook, SU sticks out at as one of the market's strongest value stocks.
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Is Suncor Energy (SU) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Suncor Energy (SU - Free Report) . SU is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors should also recognize that SU has a P/B ratio of 1.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.56. Over the past 12 months, SU's P/B has been as high as 1.68 and as low as 1.22, with a median of 1.40.
Finally, investors will want to recognize that SU has a P/CF ratio of 3.95. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SU's P/CF compares to its industry's average P/CF of 4.71. SU's P/CF has been as high as 4.15 and as low as 2.82, with a median of 3.31, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Suncor Energy is likely undervalued currently. And when considering the strength of its earnings outlook, SU sticks out at as one of the market's strongest value stocks.