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.
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
Source – TradingView
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.
Concluding thoughts
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.
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