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

This story originally appeared on Zacks

In the latest trading session, Suncor Energy (SU) closed at $19.57, marking a -0.25% move from the previous day. This change lagged the S&P 500’s daily loss of 0.16%.

Prior to today’s trading, shares of the energy company had gained 9.06% over the past month. This has outpaced the Oils-Energy sector’s gain of 3.37% and the S&P 500’s gain of 0.46% in that time.

SU will be looking to display strength as it nears 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.89 per share and revenue of $32.15 billion. These totals would mark changes of +271.82% and +71.47%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SU. Recent revisions tend to reflect the latest near-term business trends. 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.

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. Within the past 30 days, our consensus EPS projection has moved 5.5% lower. SU is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that SU has a Forward P/E ratio of 10.38 right now. This represents a no noticeable deviation compared to its industry’s average Forward P/E of 10.38.

We can also see that SU currently has a PEG ratio of 3.46. 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 was holding an average PEG ratio of 3.46 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 25, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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