Suncor Energy (SU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
The latest trading session saw Suncor Energy (SU) ending at $31.84, denoting a -0.84% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.2%.
Coming into today, shares of the energy company had lost 5% in the past month. In that same time, the Oils-Energy sector lost 2.12%, while the S&P 500 gained 4.59%.
Market participants will be closely following the financial results of Suncor Energy in its upcoming release. The company plans to announce its earnings on February 21, 2024. The company is expected to report EPS of $0.79, down 40.6% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $8.46 billion, reflecting a 17.06% fall from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Suncor Energy. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.75% downward. Suncor Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Suncor Energy is currently trading at a Forward P/E ratio of 8.96. For comparison, its industry has an average Forward P/E of 8.98, which means Suncor Energy is trading at a discount to the group.
One should further note that SU currently holds a PEG ratio of 2.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Integrated - Canadian was holding an average PEG ratio of 2.99 at yesterday's closing price.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 194, placing it within the bottom 24% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Suncor Energy Inc. (SU) : Free Stock Analysis Report
