Suncor Energy: Growing Up Fast ($SU)
Suncor Energy is working hard towards the growth of the company. Be sure not to over look this company, its on its way up! Let’s find out where the company stands now, and where is could potentially go. Here are the details from Alex Shadunsky.
Valuation: Suncor Energy’s trailing 5 year valuation metrics suggest that the stock is undervalued as all of the metrics are below their respective 5 year averages. Suncor Energy’s current P/B ratio is 1.3 and it has averaged 1.8 over the past 5 years with a high of 4 and low of 1.1. Suncor Energy’s current P/S ratio is 1.2 and it has averaged 1.5 over the past 5 years with a high of 2.4 and low of 0.6.
Price Target: The consensus price target for the analysts who follow Suncor Energy is $43. That is upside of 37% from today’s stock price of $31.29 and suggests that the stock is undervalued at these levels. This also suggests that the stock has significant upside and is an attractive opportunity at these levels.
Forward Valuation: Suncor Energy is currently trading at about $31 a share with analysts expecting EPS of $3.81 next year, an earnings increase of 13% y/y, for a forward P/E ratio of 8.2. Taking a look at the company’s publicly traded comparisons will give us a better idea of the stock’s relative valuation. Imperial Oil (IMO) is currently trading at about $45 a share with analysts expecting EPS of $3.97 next year, an earnings increase of 5% y/y, for a forward P/E ratio of 11.3. Canadian Natural Resources (CNQ) is currently trading at about $32 a share with analysts expecting EPS of $3.69 next year, an earnings increase of 28% y/y, for a forward P/E ratio of 8.6. Apache (APA) is currently trading at about $91 a share with analysts expecting EPS of $14.08 next year, an earnings increase of 11% y/y, for a forward P/E ratio of 6.5. The mean forward P/E of Suncor Energy’s competitors is 8.8 which suggests that Suncor Energy is fairly valued relative to its publicly traded competitors.
It looks like this company is on the right track. Be sure to watch closely so you know when to buy in. Buy in opportunities are approaching, so get ready!
Quotes taken from report by Alex Shandunsky, Read the entire article here.
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