In the latest trading session, Suncor Energy (SU) closed at $34.62, marking a +0.06% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Prior to today's trading, shares of the energy company had gained 10.26% over the past month. This has outpaced the Oils-Energy sector's gain of 4.55% and the S&P 500's gain of 5.73% in that time.
Investors will be hoping for strength from Suncor Energy as it approaches its next earnings release. On that day, Suncor Energy is projected to report earnings of $1.26 per share, which would represent year-over-year growth of 77.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.65 billion, up 9.06% from the year-ago period.
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 a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.2% lower. Suncor Energy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Suncor Energy has a Forward P/E ratio of 8.08 right now. Its industry sports an average Forward P/E of 9.12, 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 0.64. 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 0.49 at yesterday's closing price.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% 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.
To follow SU in the coming trading sessions, be sure to utilize Zacks.com.
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