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Suncor Energy (SU) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Suncor Energy (SU) closed at $30.31, marking a +0.17% move from the previous day. This change outpaced the S&P 500's 0.12% gain on the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.

Heading into today, shares of the energy company had gained 4.96% over the past month, outpacing the Oils-Energy sector's gain of 2.63% and the S&P 500's gain of 3.98% in that time.

Suncor Energy will be looking to display strength as it nears 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

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It is also important to note the recent changes to analyst estimates for Suncor Energy. Recent revisions tend to reflect the latest near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection has moved 5.07% lower. Suncor Energy currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Suncor Energy currently has a Forward P/E ratio of 8.08. Its industry sports an average Forward P/E of 8.91, 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 0.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Integrated - Canadian was holding an average PEG ratio of 0.5 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 107, putting it in the top 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Suncor Energy Inc. (SU) : Free Stock Analysis Report

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