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Here's Why Sunoco LP (SUN) Gained But Lagged the Market Today

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Sunoco LP (SUN - Free Report) closed the most recent trading day at $54.73, moving +0.26% from the previous trading session. This change lagged the S&P 500's 0.88% gain on the day. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 0.65%.

The the stock of master limited partnership has risen by 6.04% in the past month, leading the Oils-Energy sector's loss of 0.38% and the S&P 500's gain of 1.17%.

The investment community will be paying close attention to the earnings performance of Sunoco LP in its upcoming release. The company is slated to reveal its earnings on February 11, 2025. It is anticipated that the company will report an EPS of $2.46, marking a 264% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.74 billion, reflecting a 1.75% rise from the equivalent quarter last year.

It is also important to note the recent changes to analyst estimates for Sunoco LP. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sunoco LP presently features a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Sunoco LP has a Forward P/E ratio of 5.65 right now. This indicates a discount in contrast to its industry's Forward P/E of 23.82.

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 48, putting it in the top 20% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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