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

Suncor Energy (SU) closed at $18.72 in the latest trading session, marking a -0.95% move from the prior day.

This story originally appeared on Zacks

In the latest trading session, Suncor Energy (SU) closed at $18.72, marking a -0.95% move from the previous day. This change lagged the S&P 500's daily loss of 0.03%.

- Zacks

Heading into today, shares of the energy company had lost 3.37% over the past month, lagging the Oils-Energy sector's gain of 2.51% and the S&P 500's gain of 3.59% in that time.

SU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.56, up 273.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.18 billion, up 89.43% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2 per share and revenue of $32.89 billion. These totals would mark changes of +281.82% and +75.42%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SU. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. SU is currently a Zacks Rank #3 (Hold).

Looking at its valuation, SU is holding a Forward P/E ratio of 9.45. This valuation marks a discount compared to its industry's average Forward P/E of 9.75.

Investors should also note that SU has a PEG ratio of 3.15 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 was holding an average PEG ratio of 3.15 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 117, which puts it in the top 47% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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