In the latest trading session, Suncor Energy (SU) closed at $25.16, marking a -1.99% move from the previous day. This change lagged the S&P 500's daily loss of 0.54%.
Heading into today, shares of the energy company had gained 7.72% over the past month, outpacing the Oils-Energy sector's gain of 5.44% and the S&P 500's gain of 1.91% in that time.
SU will be looking to display strength as it nears its next earnings release. In that report, analysts expect SU to post earnings of $0.46 per share. This would mark year-over-year growth of 164.79%. Meanwhile, our latest consensus estimate is calling for revenue of $7.12 billion, up 132.5% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.11 per share and revenue of $29.86 billion. These totals would mark changes of +291.82% and +59.22%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SU. These recent revisions tend to reflect the evolving nature of short-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. 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 29.45% higher. SU is currently a Zacks Rank #1 (Strong Buy).
Investors should also note SU's current valuation metrics, including its Forward P/E ratio of 12.17. Its industry sports an average Forward P/E of 12.17, so we one might conclude that SU is trading at a no noticeable deviation comparatively.
It is also worth noting that SU currently has a PEG ratio of 4.06. 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. SU's industry had an average PEG ratio of 4.06 as of yesterday's close.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% 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.
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