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Here's Why You Should Add Sunoco (SUN) to Your Portfolio

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Estimates for Sunoco LPSUN have been revised upward in the past 90 days, which reflects analysts' optimism in the stock. The Zacks Consensus Estimate for 2019 earnings has moved up 9.6%.

Units of Sunoco have rallied 12.5% in the past six months, against the industry 's decline of 17.4%.

Let's focus on the factors that make Sunoco an attractive pick.

Zacks Rank & Surprise History

The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Sunoco pulled off an average positive earnings surprise of 18.39% in the last four quarters.

Growth Projections

The Zacks Consensus Estimate for 2019 earnings per share is pegged at $2.39, reflecting year-over-year surge of 70.41%. The Zacks Consensus Estimate for 2019 revenues is pegged at $17.50 billion, reflecting year-over-year rise of 0.06%.

VGM Score

Sunoco has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are best investment options.

Acquisition Strategy

Sunoco makes strategic acquisitions to boost growth. On Aug 1, the partnership completed the Sandford Oil acquisition which included a 115-million gallon a year fuel distribution business to exploration, drilling and oilfield services for Oklahoma customers. On Oct 16, the partnership completed the acquisition of BRENCO Marketing Corporation's fuel distribution business, which distributes approximately 95 million gallons of fuel per year across Central and East Texas. The company expects the acquisitions to be accretive to unitholders in the first year.

Other Key Picks

A few other top-ranked stocks in the Oils-Energy sector include Par Pacific Holdings, Inc PARR , RGC Resources Inc RGCO and CrossAmerica Partners LP CAPL , each carrying a Zacks Rank #2 (Buy).

Par Pacific Holdings delivered a positive surprise of 118.86% in the past four quarters. The Zacks Consensus Estimate for 2019 earnings surged 57.5% to $1.26 per share in the past 60 days.

RGC Resources delivered a positive surprise of 87.64% in the past four quarters. The Zacks Consensus Estimate for 2019 earnings inched up 0.9% to $1.10 per share in the past 60 days.

CrossAmerica Partners delivered a positive surprise of 436.67% in the past four quarters. The Zacks Consensus Estimate for 2019 earnings moved up 3.2% to 65 cents per unit in the past 60 days.

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Sunoco LP (SUN): Free Stock Analysis Report

CrossAmerica Partners LP (CAPL): Free Stock Analysis Report

Par Pacific Holdings, Inc. (PARR): Free Stock Analysis Report

RGC Resources Inc. (RGCO): Free Stock Analysis Report

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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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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