Suncor Energy (SU) is a Top-Ranked Value Stock: Should You Buy?

·2 min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Suncor Energy (SU)

Founded in 1917, Alberta-based Suncor Energy, Inc. is Canada's premier integrated energy company. The company's operations include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining, and product marketing. Suncor is one of the largest owners of oil sands in the world. The company has gained new oil sands properties to supplement its existing operations in northern Alberta, making it the dominant producer in the region where reserves are second only to Saudi Arabia.

SU sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Oil and Gas - Integrated - Canadian industry's P/E of 5.4X, shares of Suncor Energy are trading at a forward P/E of 4.8X. SU also has a PEG Ratio of 0.5, a Price/Cash Flow ratio of 5.8X, and a Price/Sales ratio of 1.1X.

A company's earnings performance is important for value investors as well. For fiscal 2022, two analysts revised their earnings estimate higher in the last 60 days for SU, while the Zacks Consensus Estimate has increased $1.01 to $6.41 per share. SU also holds an average earnings surprise of 7%.

Investors should take the time to consider SU for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.


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