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Sunoco LP (SUN) Laps the Stock Market: Here's Why

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Sunoco LP (SUN - Free Report) ended the recent trading session at $54.06, demonstrating a +1.03% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.38% for the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.24%.

Prior to today's trading, shares of the master limited partnership had lost 6.21% lagged the Oils-Energy sector's gain of 6.38% and the S&P 500's gain of 6.6%.

The investment community will be paying close attention to the earnings performance of Sunoco LP in its upcoming release. The company's upcoming EPS is projected at $1.71, signifying a 55.58% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.49 billion, down 11.15% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.48 per share and revenue of $21.75 billion. These totals would mark changes of +8% and -4.16%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Sunoco LP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.81% lower. As of now, Sunoco LP holds a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Sunoco LP is at present trading with a Forward P/E ratio of 8.26. This denotes a discount relative to the industry average Forward P/E of 20.41.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 185, finds itself in the bottom 25% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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