Suncor Stock Rose 2.2% in the Past Month, Underperformed SPY



Suncor’s stock performance

Suncor Energy (SU) stock has risen 2.2% since February 11. The stock has risen less than ExxonMobil (XOM) and Chevron (CVX). In the past month, ExxonMobil and Chevron have risen 7.7% and 5.7%, respectively. The broader market indicator, the SPDR S&P 500 ETF (SPY) has risen 2.9% in the past month.

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Moving averages

Suncor Energy’s ten-day moving average was 4.8% above its 30-day moving average on February 11. In the past month, the stock’s 30-day moving average has risen 7.0%, which has narrowed the gap between both of the moving averages to 1.6%. While the difference between the moving averages has narrowed, Suncor Energy’s ten-day moving average is still above its 30-day moving average, which is a good sign.

How’s Suncor stock placed?

Suncor Energy stock trades at a forward PE ratio of 16.9x, which is above the peer average of 14.0x. Currently, Suncor Energy’s dividend yield is 3.9%, which is below the peer average of 5.1%. In 2018, Suncor Energy paid 2.3 billion Canadian dollars in dividends and repurchased shares worth 3.1 billion Canadian dollars.

However, the company is expected to post an ~8% decline in its earnings in 2019. The decline is more than the average fall in Suncor Energy’s peers, which stands at ~6%. The lower oil price estimate is why integrated energy companies will likely post lower earnings this year.

Overall, Suncor Energy has relatively higher valuations, a lower dividend yield, and a below-average growth expectation for 2019.

Next, we’ll discuss BP’s stock returns.


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