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Sunoco LP (SUN) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Sunoco LP (SUN - Free Report) closed at $41.48, marking a -1.43% move from the previous day. This change lagged the S&P 500's 1.3% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.37%.

Coming into today, shares of the master limited partnership had lost 3.18% in the past month. In that same time, the Oils-Energy sector gained 7.26%, while the S&P 500 lost 5.33%.

Investors will be hoping for strength from Sunoco LP as it approaches its next earnings release. In that report, analysts expect Sunoco LP to post earnings of $1.03 per share. This would mark a year-over-year decline of 35.63%. Meanwhile, our latest consensus estimate is calling for revenue of $4.94 billion, up 42.24% from the prior-year quarter.

SUN's full-year Zacks Consensus Estimates are calling for earnings of $4.24 per share and revenue of $20.72 billion. These results would represent year-over-year changes of -19.7% and +17.76%, respectively.

Any recent changes to analyst estimates for Sunoco LP should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.95% higher within the past month. Sunoco LP is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Sunoco LP's current valuation metrics, including its Forward P/E ratio of 9.94. This valuation marks a discount compared to its industry's average Forward P/E of 16.05.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 11% 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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