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Suncor Energy (SU) Gains As Market Dips: What You Should Know

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In the latest trading session, Suncor Energy (SU - Free Report) closed at $29.63, marking a +1.86% move from the previous day. This move outpaced the S&P 500's daily loss of 0.53%.

Heading into today, shares of the energy company had lost 0.14% over the past month, lagging the Oils-Energy sector's gain of 1.09% and the S&P 500's gain of 4.86% in that time.

Investors will be hoping for strength from Suncor Energy as it approaches its next earnings release. In that report, analysts expect Suncor Energy to post earnings of $0.91 per share. This would mark a year-over-year decline of 57.08%. Our most recent consensus estimate is calling for quarterly revenue of $8 billion, down 36.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.75 per share and revenue of $33.31 billion, which would represent changes of -41.59% and -26.14%, respectively, from the prior year.

Any recent changes to analyst estimates for Suncor Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 3.16% lower within the past month. Suncor Energy is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Suncor Energy has a Forward P/E ratio of 7.75 right now. Its industry sports an average Forward P/E of 8.56, so we one might conclude that Suncor Energy is trading at a discount comparatively.

We can also see that SU currently has a PEG ratio of 0.65. 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 0.48 as of yesterday's close.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 114, putting it in the top 46% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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