In the latest close session, Sunoco LP (SUN) was down 2.23% at $49.12. This move lagged the S&P 500's daily gain of 0.49%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.72%.
Shares of the master limited partnership have depreciated by 3.16% over the course of the past month, underperforming the Oils-Energy sector's gain of 3.95%, and the S&P 500's gain of 2.99%.
The investment community will be paying close attention to the earnings performance of Sunoco LP in its upcoming release. It is anticipated that the company will report an EPS of $1.66, marking a 738.46% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.58 billion, down 2.94% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.54 per share and revenue of $21.95 billion, which would represent changes of -7.67% and -3.27%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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 business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sunoco LP is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at valuation, Sunoco LP is presently trading at a Forward P/E ratio of 9.07. For comparison, its industry has an average Forward P/E of 19.06, 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. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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This article originally published on Zacks Investment Research (zacks.com).
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