Suncor Stock Rises 22%, Outperforms SPY in Q1 2019



SU’s performance compared to SPY’s

Suncor Energy (SU) stock has risen 22% since January 2, 2019, the beginning of the first quarter. In comparison, the SPDR S&P 500 ETF (SPY), the broader equity market indicator, has risen 13% in the same period. Thus, Suncor has outperformed SPY so far in the first quarter.

Suncor’s peer Royal Dutch Shell (RDS.A) has risen 8% since January 2. Similarly, ExxonMobil (XOM) and BP (BP) have risen 16% and 15%, respectively, in the quarter so far.

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Suncor stock rises in the first quarter

In the first quarter, oil prices have risen steeply. WTI, the benchmark oil, has surged 27% in the quarter. Oil prices have increased due to the implementation of production cuts by OPEC. The possibility that the cuts will be extended beyond June 2019 has also pushed oil prices up. US sanctions against Iran and Venezuela have further supported oil prices.

However, in the first quarter, Suncor announced its fourth-quarter earnings results, which missed Wall Street analysts’ estimates. In the quarter, Suncor’s adjusted EPS stood at 0.36 Canadian dollars, which missed the consensus estimate of 0.45 Canadian dollars.

Nevertheless, the company’s yearly numbers have been robust. In 2018, Suncor’s earnings and cash flows rose, and its shareholder returns were quite healthy in addition to its expanding upstream portfolio.

In short

Suncor stock has risen due to a surge in oil prices, a better annual performance, and robust upstream volumes partially offset by lower-than-expected fourth-quarter earnings results.

In the following article, we’ll see what Suncor’s moving averages suggest.


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