Sunoco LP (SUN) Gains But Lags Market: What You Should Know

Sunoco LP (SUN) closed at $42.93 in the latest trading session, marking a +1.51% move from the prior day. This move lagged the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 1.45%, and the Nasdaq, a tech-heavy index, added 0.36%.

Heading into today, shares of the master limited partnership had gained 2.75% over the past month, lagging the Oils-Energy sector's gain of 9.22% and outpacing the S&P 500's loss of 1.42% in that time.

Sunoco LP will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2022. On that day, Sunoco LP is projected to report earnings of $0.92 per share, which would represent a year-over-year decline of 42.5%. Our most recent consensus estimate is calling for quarterly revenue of $4.85 billion, up 39.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.24 per share and revenue of $21.35 billion, which would represent changes of -19.7% and +21.35%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Sunoco LP is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Sunoco LP has a Forward P/E ratio of 9.99 right now. Its industry sports an average Forward P/E of 13.5, so we one might conclude that Sunoco LP is trading at a discount comparatively.

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 241, putting it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.