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

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In the latest trading session, Sunoco LP (SUN) closed at $38.59, marking a +0.76% move from the previous day. This change lagged the S&P 500's 2.76% gain on the day. Elsewhere, the Dow gained 2.43%, while the tech-heavy Nasdaq added 0.25%.

Prior to today's trading, shares of the master limited partnership had gained 7.55% over the past month. This has outpaced the Oils-Energy sector's loss of 2.37% and the S&P 500's gain of 4.44% in that time.

Sunoco LP will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2022. In that report, analysts expect Sunoco LP to post earnings of $1.16 per share. This would mark a year-over-year decline of 32.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.51 billion, up 48.11% from the year-ago period.

SUN's full-year Zacks Consensus Estimates are calling for earnings of $6.66 per share and revenue of $27.09 billion. These results would represent year-over-year changes of +26.14% and +53.93%, respectively.

Investors might also notice recent changes to analyst estimates for Sunoco LP. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Sunoco LP is currently a Zacks Rank #2 (Buy).

In terms of valuation, Sunoco LP is currently trading at a Forward P/E ratio of 5.75. For comparison, its industry has an average Forward P/E of 7.96, which means Sunoco LP is trading at a discount to the group.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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 SUN in the coming trading sessions, be sure to utilize Zacks.com.

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