Suncor Energy Inc. (SU): Technicals Say You should Hold

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Suncor Energy Inc. (NYSE:SU) saw a downside of -1.55% to close Tuesday at $31.04 after subtracting -$0.49 on the day. The 5-day average trading volume is 4,906,400 shares of the company’s common stock. It has gained $32.20 in the past week and touched a new high 4 times within the past 5 days. An average of 5,366,890 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 5,477,996.

SU’s 1-month performance is 3.81% or $1.44 on its low of $29.32 reached on 12/19/22. The company’s shares have touched a 52-week low of $25.27 and high of $42.72, with the stock’s rally to the 52-week high happening on 01/09/23. YTD, SU has lost -2.17% or -$0.69 and has reached a new high 2 times. However, the current price is down -27.33% from the 52-week high price.


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Valuation Metrics

SU stock has a beta of 1.30. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.99 while the price-to-book (PB) in the most recent quarter is 1.51, with the price to cash flow ratio at 5.19.

Suncor Energy Inc.’s quick ratio for the period ended September 29 was 0.90, with the current ratio over the same period at 1.30. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.42, while the total debt to equity was 0.50.. In terms of profitability, the gross margin trailing 12 months is 63.70%. The firm’s gross profit as reported stood at $19.01 billion against revenue of $31.2 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Suncor Energy Inc.’s cash and short-term investments amounted to $101.88 million against total debt of $19.24 billion. Net income and sales went down compared to those figures reported in the previous quarter. Net income shrunk -13.59% to $2.22 billion, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected SU to announce $1.35 per share in earnings in its latest quarter, but it posted $1.39, representing a 3.00% surprise. EBITDA for the quarter stood at more than $4.06 billion. SU stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 35.89 billion, with total debt at $19.24 billion.

Let’s look briefly at Suncor Energy Inc. (SU) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 10 January was 49.78% to suggest the stock is trending Neutral, with historical volatility in this time period at 45.44%.

The stock’s 5-day moving average is $30.81, reflecting a +2.75% or $0.83 change from its current price. SU is currently trading +4.86% above its 20-day SMA, -4.02% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -7.29% and SMA200 by-5.65%.

Stochastic %K and %D was 69.69% and 58.82% and the average true range (ATR) pointed at 0.99. The RSI (14) points at 47.94%, while the 14-day stochastic is at 55.98% with the period’s ATR at 1.02. The stock’s 9-day MACD Oscillator is pointing at 0.35 and 0.33 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Suncor Energy Inc. (NYSE: SU), Wells Fargo downgraded it to an Equal weight rating. They previously had an Overweight rating on the stock. Analysts offering their rating for SU stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate SU as a “sell,”, while 9 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 12 have offered a “buy” rating.

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