Should you buy Suncor Energy stock ahead of earnings?
- Suncor loses 11% in a month after remaining in an uptrend this year.
- The company reports quarterly earnings on July 27, with an expectation of $1.74 EPS.
- The stock is attractive, although the stock faces resistance at $34.
Suncor Energy Inc. (SU:NYSE) has lost 11.44% in a month. That could attract bulls as oil prices continue to soar. That also considers that Suncor has returned 22.88% year-to-date. Thus, the latest decline is not due to weak company fundamentals or industry concerns. Instead, it could be due to investor profit taking as the stock soared to new all-time highs.
Suncor’s Energy PEG ratio stands at 0.96. That compares to a PEG ratio of Canadian integrated oil and gas sectors PEG of 0.37. The stock could be overvalued relative to the industry, but the ratio suggests a fairly priced stock.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Suncor Energy reports earnings on July 27. The company is expected to report per-share earnings of $1.74. The earnings are greater than the comparable quarter of last year of $0.39. With the latest strengths in the oil and gas sectors, the estimates are likely to be met.
Suncor Energy emerges from the $31 support
Technically, Suncor Energy is bullish ahead of the quarterly earnings. The stock is gaining strength from the $29 oversold support and is trading at $31. The 14-day moving average is joining support for the stock as bullish momentum develops.
Strong quarter earnings could be the trigger to push the price to resistance at 34 and beyond. The stock is currently a hold. New buyers should consider snapping the stock if the earnings surpass estimates.
Suncor Energy reports earnings when the oil and gas sectors are booming. Investors hold high expectations. The stock could gain value if the quarter results meet or surpass estimates. Investors should hold or consider buying after the quarter results.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- Capital.com, simple, easy to use and regulated. Register here >
*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.