Strength Seen in Sunoco LP (SUN): Can Its 8.3% Jump Turn into More Strength?
Sunoco LP (SUN) shares soared 8.3% in the last trading session to close at $51.22. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.2% gain over the past four weeks.
Sunoco’s shares rallied on the last trading day. The bullishness could be attributed to the rising demand for gasoline, as people continue to rely on fuel for transportation. The sustained demand for gasoline positively impacted the partnership's revenue and profitability, driving investor confidence and share price gains.
This master limited partnership is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of +32%. Revenues are expected to be $5.72 billion, down 13.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Sunoco LP, the consensus EPS estimate for the quarter has been revised 5.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SUN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sunoco LP is a member of the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry. One other stock in the same industry, Targa Resources, Inc. (TRGP), finished the last trading session 1% higher at $87.44. TRGP has returned 0.5% over the past month.
Targa Resources, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.26. Compared to the company's year-ago EPS, this represents a change of +50%. Targa Resources, Inc. currently boasts a Zacks Rank of #3 (Hold).
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Sunoco LP (SUN) : Free Stock Analysis Report
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