Why Suncor Energy (SU) Stock Is Up Today

NEW YORK (TheStreet) --Shares of Suncor Energy Inc. (SU) are up 4.46% to $39.10 on Tuesday due to the company's strong earnings report for the first quarter 2014.

Net earnings were $1.485 billion, or $1.01 per common share for the first quarter 2014, compared to the $1.094 billion, or 72 cents per share reported during the same period last year.

The integrated energy company reported operating earnings increased to $1.793 billion, or $1.22 per common share, versus $1.367 billion, or 90 cents per share reported in the first quarter 2013.

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Suncor's record cash flow was $2.880 billion or $1.96 per common share, compared to the first quarter 2013 when it reported $2.284 billion, or $1.50 per common share.

TheStreet Ratings team rates SUNCOR ENERGY INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SUNCOR ENERGY INC (SU) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 7.5%. Since the same quarter one year prior, revenues slightly increased by 4.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SU's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 178.94% and other important driving factors, this stock has surged by 28.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 177.2% when compared to the same quarter one year prior, rising from -$574.00 million to $443.00 million.
  • You can view the full analysis from the report here: SU Ratings Report
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