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Suncor Energy (SU) Gains But Lags Market: What You Should Know

In the latest trading session, Suncor Energy (SU) closed at $29.90, marking a +0.4% move from the previous day. This move lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the energy company had lost 13.61% over the past month. This has lagged the Oils-Energy sector's loss of 5.74% and the S&P 500's gain of 3.49% in that time.

Investors will be hoping for strength from Suncor Energy as it approaches its next earnings release. In that report, analysts expect Suncor Energy to post earnings of $1.42 per share. This would mark year-over-year growth of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $9.71 billion, up 9.67% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.17 per share and revenue of $42.78 billion. These totals would mark changes of +202.45% and +37.19%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Suncor Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.14% lower. Suncor Energy currently has a Zacks Rank of #3 (Hold).

Investors should also note Suncor Energy's current valuation metrics, including its Forward P/E ratio of 4.82. This represents a discount compared to its industry's average Forward P/E of 6.67.

Also, we should mention that SU has a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Integrated - Canadian industry currently had an average PEG ratio of 0.4 as of yesterday's close.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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