Suncor Energy (SU) is one of the highest ranked growth stocks: should you buy?
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium offers plenty of ways to do both.
The popular research service can help you become a smarter and safer investor, giving you access to daily updates in the Zacks ranking and the Zacks Industry ranking, the Zacks #1 classification list, reports stock research and premium stock screens.
It also includes access to Zacks style sheet music.
What are Zacks style scores?
The Zacks style scores, developed in parallel with the Zacks classification, are complementary indicators that assess actions according to three widely followed investment methodologies; They also help investors choose stocks with the best chance of beating the market over the next 30 days.
On the basis of their characteristics of value, growth and momentum, each action is assigned a note of A, B, C, D or F. The more good the score, the best are the chances that the action outperform; an A is better than a B, a B is better than a C, etc.
Style Scores are divided into four categories:
For value -oriented investors, it is a question of finding good deeds at good prices and discovering which companies are negotiated at their fair value before the market spreads. The value -style score uses ratios such as P/E, PEG, Price/Sales, Price/Cash flows and a host of other multiple to help select the most attractive and access actions.
Investors focused on growth are more concerned with the future prospects of an action, as well as by the overall health and financial solidity of a company. Thus, the Growth Style Score analyzes characteristics such as expected and historical earnings, sales and cash flow to find stocks that will experience sustainable growth over time.
Aggressive investors, who live by the saying “the trend is your friend”, are more interested in taking advantage of rising or falling trends in a stock’s price or earnings prospects. Using the variation of prices over a week and the monthly variation as a percentage of profits, among other factors, the STORY STYLE MOMENTUM can help determine the favorable moments to buy high dynamic actions.
If you enjoy using all three types of investing, the VGM score is for you. It’s a combination of all style scores, and it’s an important indicator to use with the Zacks rank. The VGM score rates each stock based on its shared weighted styles, narrowing down the companies with the most attractive value, the best growth forecasts and the most promising momentum.
How Style Scores Work with Zacks Ranking
The ZABKS ranking is an exclusive model for the rating of actions which exploits the power of revisions of the estimates of profits or changes in the forecasts of a company’s profits to help investors build a powerful portfolio.
It is a great success, with actions #1 (Strong buy) producing an unrivaled average annual return of +25.41% since 1988. It is more than double the S&P 500. But due to the large number of shares that we assess, there are over 200 companies with a strong Buy Rank, plus another 600 with a #2 (Buy) Rank, on any given day.
That totals over 800 top-rated stocks, and it can be overwhelming trying to choose the best stocks for you and your portfolio.
This is where Style Scores come in.
You want to make sure you’re buying stocks with the highest probability of success, and to do that you’ll need to choose stocks with a Zacks #1 or #2 rating that also have A or B style scores. you like a security that is only ranked #3 (Hold), it should also have scores of A or B to ensure as much upside potential as possible.
The direction of a stock’s earnings estimate revisions should always be a key factor when deciding which stocks to buy, since the scores were created to work with the Zacks Ranking.
For example, an action with a note #4 (sale) or #5 (strong sale), even one that displays scores of A and B, always has a lower profits, and a much greater probability than its share price drops. as well.
So the more stocks you have with a rank of #1 or #2 and scores of A or B, the better.
Stock to watch: Suncor Energy (SU)
Founded in 1917, Alberta-based Suncor Energy, Inc. is Canada’s first integrated energy company. The Company’s activities include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining and product marketing. Suncor is one of the largest oil sands owners in the world. The company has acquired new oil sands properties to complement its existing operations in northern Alberta, making it the dominant producer in the region where reserves are second only to Saudi Arabia.
SU is a #1 (strong buy) on the Zacks rank, with a VGM score of A.
Additionally, the company could be a top pick for growth investors. SU has a growth style score of A, forecasting year-over-year earnings growth of 191.2% for the current fiscal year.
For the year 2022, three analysts have revised their profits to the last 60 days, and the estimate of Zacks consensus increased from $ 2 to $ 5.94 per share. SU shows an average earnings surprise of 3.6%.
With strong Ranks and high level growth and VGM style scores, SU should be on the shortlist of investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.