This story originally appeared on Zacks
Suncor Energy (SU) closed at $20.74 in the latest trading session, marking no change from the prior day. This change was narrower than the S&P 500’s daily loss of 1.19%.
Prior to today’s trading, shares of the energy company had gained 12.35% over the past month. This has outpaced the Oils-Energy sector’s gain of 6.46% and the S&P 500’s loss of 3.16% in that time.
Investors will be hoping for strength from SU as it approaches its next earnings release, which is expected to be October 26, 2021. The company is expected to report EPS of $0.55, up 266.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.95 billion, up 84.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.89 per share and revenue of $32.15 billion, which would represent changes of +271.82% and +71.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SU. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.5% lower. SU is currently a Zacks Rank #3 (Hold).
In terms of valuation, SU is currently trading at a Forward P/E ratio of 10.97. This represents a discount compared to its industry’s average Forward P/E of 11.92.
Investors should also note that SU has a PEG ratio of 3.66 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. SU’s industry had an average PEG ratio of 3.66 as of yesterday’s close.
The Oil and Gas – Integrated – Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 46% 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.
To follow SU in the coming trading sessions, be sure to utilize Zacks.com.
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