| Stock (Symbol) | Stock Price | |
Suncor (SU) |
$40 |
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| Data is as of | Expected to Report | Sector |
June 14, 2011 |
Jul 28 |
Energy & Commodities |
| Sharek’s Take | ||
 I’m growing restless with Suncor (SU). Suncor was put into the Growth Portfolio to give us exposure to energy stocks, specifically oil. I bought SU on 1/31/11 at $41 and the stock quickly moved to $49. Now its $40 and I’m getting bored waiting for the stock to come back.
The reason SU is down may be because of economic fears. Usually in the economic cycle, Energy does well in the latter stages of a strong economy. Well, it seems like Energy just got a little pop earlier in 2011 and then all eyes moved to the next segment — sectors that do well when the economy is falling. Like Healthcare. More on economic cycles and the Cheat Sheet at The School of Hard Stocks. |
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| One-Year Chart | ||
 SU’s one-year chart shows the rise and fall of the stock this year. Profits have been solid for four straight quarters. Estimates look good. The P/E has gone from 15 to 20 to 14 during the last three quarters. I wish we could get that 20 back, this stock could be a lot higher (with current estimates).
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| Earnings Table | ||
 Profits surged 428% last quarter as sales jumped 48%, partially because of the merger with Petro-Canada.
SU crushed earnings estimates, but these stock’s trade more on cash flow than EPS. Stock didn’t move much after reporting. Annual Profit Estimates surged higher — so why didn’t the stock? Oil prices fell and energy stocks are out of favor. Quarterly estimates look very good for the next three quarters. These figures just got upped.
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| Fair Value | ||
 Unemotionally, this stock can get — and has gotten — a P/E of 20. With current estimates, that leaves healthy upside potential. |
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| Ten-Year Chart | ||
 The ten-year shows SU has compounded at 20% a year. So why am I a hater? Maybe I shouldn’t be.
Profits should hit record highs next year. The stock is on a nice pullback, this is a good buying point, so why am I considering selling? |
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| Power Ranking | Bottom Line | |
Growth Portfolio
21 of 21 |
I’m just not excited about these shares — even word count in this article is light. The numbers are solid, and upside is here, we just need some big money to invest in SU to push the shares higher. This isn’t a regular growth stock that rises if profits rise. SU is ranked 21st in the 21 stock Growth Portfolio Power Rankings. It’s tough to hold this stock. It’s more of a value stock than a growth stock. SU is not a candidate for the the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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