In the latest trading session, Sunoco LP (SUN) closed at $44.12, marking a -0.47% move from the previous day. This move lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.
Prior to today's trading, shares of the master limited partnership had gained 2.33% over the past month. This has lagged the Oils-Energy sector's gain of 2.66% and the S&P 500's gain of 3.44% in that time.
Investors will be hoping for strength from Sunoco LP as it approaches its next earnings release. On that day, Sunoco LP is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 0.83%. Our most recent consensus estimate is calling for quarterly revenue of $6.03 billion, down 22.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.62 per share and revenue of $23.63 billion. These totals would mark changes of -1.28% and -8.16%, respectively, from last year.
Any recent changes to analyst estimates for Sunoco LP should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 3.59% higher. Sunoco LP currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Sunoco LP is currently trading at a Forward P/E ratio of 9.6. This valuation marks a discount compared to its industry's average Forward P/E of 9.84.
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 30, putting it in the top 12% 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.
To follow SUN in the coming trading sessions, be sure to utilize Zacks.com.
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