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Sunoco LP (SUN) Gains But Lags Market: What You Should Know

In the latest trading session, Sunoco LP (SUN) closed at $41.53, marking a +0.61% move from the previous day. This change lagged the S&P 500's 1.23% gain on the day. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq gained 0.44%.

Prior to today's trading, shares of the master limited partnership had lost 4.33% over the past month. This has lagged the Oils-Energy sector's gain of 7.99% and the S&P 500's gain of 4.69% in that time.

Investors will be hoping for strength from Sunoco LP as it approaches its next earnings release. The company is expected to report EPS of $1.03, down 35.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.94 billion, up 42.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.24 per share and revenue of $20.72 billion, which would represent changes of -19.7% and +17.76%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Sunoco LP. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Sunoco LP is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Sunoco LP's current valuation metrics, including its Forward P/E ratio of 9.75. This represents a discount compared to its industry's average Forward P/E of 17.01.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 245, which puts it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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