In the last trading session, Suncor Energy (SU) closed at $ 23.93, a -1.89% move from the previous day. That change fell short of the S&P 500’s daily gain of 0.75%.
Today, the energy company’s shares are down 6.12% over the past month. At the same time, the oil-energy sector rose 0.89% while the S&P 500 rose 3.52%.
Wall Street will be on the lookout for positivity on the SU as it nears its next earnings reporting date. On that day, SU is expected to post earnings of $ 0.46 per share, a year-over-year growth of 164.79%. Meanwhile, the Zacks Consensus Estimate is forecasting net sales of $ 7.12 billion, up 132.5% from the same period last year.
For the full year, our Zacks Consensus Estimates suggest analysts expect earnings per share of $ 2.11 and revenue of $ 29.86 billion. These sums would mean a change of +291.82% and +59.22% respectively compared to the previous year.
Any recent changes in analyst estimates for SU should also be considered by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive estimate revisions reflect analysts’ optimism about the company’s business and profitability.
Based on our research, we believe these valuation revisions are directly related to team-based stock movements. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these changes in estimates into account and provides a clear, actionable rating model.
The Zacks Rank system, which ranges from # 1 (Strong Buy) to # 5 (Strong Sell), has had impressive, externally audited outperformance, with # 1 stocks seeing an average annual return of + 25% since 1988 In the last 30 days, our consensus EPS forecast has increased by 31.06%. SU currently holds a Zacks rank of # 1 (Strong Buy).
In terms of valuation, SU is currently trading with a forward P / E of 11.34. The industry has an average forward P / E of 11.17, so we can conclude that SU is comparatively trading at a premium.
Investors should also note that SU currently has a PEG ratio of 3.78. This metric is used in a similar way to the famous P / E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. At yesterday’s close of trading, the SU industry had an average PEG ratio of 3.78.
Canada’s oil and gas industry is part of the oil-energy sector. This group has a Zacks industry ranking of 11, making them the top 5% of all 250+ industries.
The Zacks Industry Rank is a best-to-worst ranking based on the average Zacks rank of each company in each of those sectors. Our research shows that the top-rated 50% of industries outperform the bottom half by a factor of 2 to 1.
For more information on all of these metrics and more, visit Zacks.com.
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