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

·3 min read

Suncor Energy (SU) closed the most recent trading day at $20.22, moving +0.25% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.15%.

Heading into today, shares of the energy company had gained 8.09% over the past month, outpacing the Oils-Energy sector's gain of 7.33% and the S&P 500's loss of 0.58% in that time.

Investors will be hoping for strength from SU as it approaches its next earnings release. In that report, analysts expect SU to post earnings of $0.55 per share. This would mark year-over-year growth of 266.67%. Meanwhile, our latest consensus estimate is calling for revenue of $8.95 billion, up 84.74% from the prior-year quarter.

SU's full-year Zacks Consensus Estimates are calling for earnings of $1.89 per share and revenue of $32.15 billion. These results would represent year-over-year changes of +271.82% and +71.47%, respectively.

Investors might also notice recent changes to analyst estimates for SU. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 5.5% lower within the past month. SU is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, SU is holding a Forward P/E ratio of 10.67. For comparison, its industry has an average Forward P/E of 11.25, which means SU is trading at a discount to the group.

Investors should also note that SU has a PEG ratio of 3.56 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - Canadian industry currently had an average PEG ratio of 3.56 as of yesterday's close.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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