For Immediate Release Chicago, IL – September 9, 2024 – Today, Zacks Equity Research discusses, Targa Resources (TRGP) , Sunoco LP (SUN) and CrossAmerica Partners LP (CAPL) . Industry: Refining and Marketing - MLP Link: https://www.zacks.com/commentary/2332556/watch-for-these-3-refining-marketing-mlp-stocks-trgp-suncapl In recent quarters, fuel margins for companies in the Zacks Oil and Gas - Refining & Marketing MLP industry have declined, falling significantly below the peak levels seen in 2022. Although ...

It has been about a month since the last earnings report for Sunoco LP (SUN) . Shares have lost about 0.8% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Sunoco LP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Sunoco Q2 Earnings Beat Estimates Sunoco LP report ...

Sunoco LP (SUN) units have gained 29.3% over the past year, which, though encouraging, lags the 58.1% growth of the broader industry. Sunoco's business model is stable and resilient, underpinned by its operation of one of the largest fuel distribution networks in the United States. This strength is evident in its price performance. However, the company's significant reliance on debt capital may have hindered its stock price movement, resulting in its underperformance relative to its industry peers. One-Year ...

Core Viewpoint - Sunoco LP is anticipated to report strong second-quarter earnings, with a significant year-over-year increase in earnings per share, despite a slight decline in revenue expectations [2][3]. Earnings Expectations - The Zacks Consensus Estimate for Sunoco's second-quarter earnings is $1.79 per share, reflecting a nearly 130% increase from the previous year [3]. - Quarterly revenue is estimated at $5.5 billion, indicating a 4.4% decrease compared to the same quarter last year [3]. - Sunoco has historically shown mixed performance against earnings estimates, beating expectations once, missing twice, and meeting once in the last four quarters, with an average negative surprise of 27% [4]. Business Operations and Performance - Sunoco is a leading independent fuel distributor in North America, delivering over 8.5 billion gallons annually across more than 40 U.S. states and the Caribbean, which is expected to contribute to stable cash flows [6]. - The company operates a vast pipeline network of approximately 10,000 miles, which is likely to generate stable earnings [7]. - The acquisition of NuStar Energy LP is expected to enhance Sunoco's operational efficiency and cash flow stability [7][11]. Market Position and Valuation - Sunoco's stock has increased by 24.1% over the past year, outperforming the energy sector's growth of 2.5% [8]. - The current trailing 12-month EV/EBITDA ratio for Sunoco is 10.78, which is significantly higher than the energy sector average of 3.03, indicating that the stock may be overvalued [9]. Strategic Developments - Sunoco has entered a joint venture with Energy Transfer LP to consolidate crude oil and produced water-gathering assets in the Permian Basin, which is expected to enhance distributable cash flow per unit [10]. - The recent acquisition of NuStar Energy for $7.3 billion diversifies Sunoco's operations and strengthens its credit profile [11]. Investment Outlook - Given the stable business model and recent strategic moves, it is suggested that investors consider buying Sunoco's stock despite its current overvaluation [12].

Core Viewpoint - Sunoco LP (SUN) is expected to report significant earnings growth for Q2 2024, with a consensus estimate of $1.79 per share, reflecting a nearly 130% increase year-over-year, despite a projected revenue decline of 4.4% to $5.5 billion [1][2]. Group 1: Earnings Performance - The Zacks Consensus Estimate indicates that SUN has beaten earnings estimates in one of the last four quarters, missed twice, and met once, with an average negative surprise of 27% [2]. - The company has an Earnings ESP of +1.96% and holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for earnings performance this quarter [3]. Group 2: Operational Factors - Sunoco is a leading independent fuel distributor in North America, delivering over 8.5 billion gallons annually across more than 40 U.S. states and the Caribbean, which is likely to contribute to stable cash flows [4]. - The company has a vast pipeline network of approximately 10,000 miles, which is expected to generate stable earnings, particularly following the acquisition of NuStar Energy LP, enhancing vertical integration [5]. Group 3: Stock Performance and Valuation - SUN's stock has increased by 24.1% over the past year, significantly outperforming the energy sector's growth of 2.5% [6]. - The current trailing 12-month EV/EBITDA ratio for SUN is 10.78, indicating it is trading at a premium compared to the energy sector average of 3.03, suggesting relative overvaluation [8]. Group 4: Strategic Developments - Sunoco's business model includes "take-or-pay" contracts, ensuring stable revenue as buyers commit to minimum purchase quantities [10]. - The recent joint venture with Energy Transfer LP to consolidate crude oil and produced water-gathering assets in the Permian Basin is expected to enhance distributable cash flow per unit [11]. - The $7.3 billion acquisition of NuStar Energy has diversified SUN's operations and improved its credit profile, indicating a strategic growth commitment [12]. Group 5: Investment Outlook - Despite being relatively overvalued, the stable business model and predictable fee-based cash flows suggest a promising outlook for investors considering buying the stock [13].

Sunoco LP (SUN) closed the latest trading day at $55.22, indicating a +0.55% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 1.37%. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 2.3%. The master limited partnership's shares have seen a decrease of 2.28% over the last month, surpassing the OilsEnergy sector's loss of 9.26% and falling behind the S&P 500's gain of 1.11%. Investors will be eagerly watching for the performance of Sunoco LP i ...

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Sunoco LP (SUN) closed the most recent trading day at $54.83, moving +0.59% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 1.64%, and the Nasdaq, a tech-heavy index, added 1.03%. Analysts and investors alike will be keeping a close eye on the performance of Sunoco LP in its upcoming earnings disclosure ...

DALLAS, July 25, 2024 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") announced that the Board of Directors of its general partner declared a quarterly distribution for the second quarter of 2024 of $0.8756 per common unit or $3.5024 per common unit on an annualized basis. The distribution will be paid on August 19, 2024 to common unitholders of record on August 9, 2024. About Sunoco LP Sunoco LP (NYSE: SUN) is a leading energy infrastructure and fuel distribution master limited partnership operating in over ...

Last week, Sunoco LP (SUN) entered into a joint venture (JV) with Energy Transfer LP (ET) to consolidate their crude oil and produced water-gathering assets in the Permian, the most prolific basin in the United States. The JV, effective as of Jul 1, 2024, will immediately enhance the distributable cash flow per unit. This development is coupled with SUN's stable business model and predictable fee-based cash flows, which suggests a promising outlook for the master limited partnership. The critical question n ...

Core Viewpoint - Sunoco (SUN) is identified as a strong investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating it is undervalued compared to its peers [2][7]. Valuation Metrics - SUN has a Forward P/E ratio of 7.94, significantly lower than the industry average of 12.30, with historical values ranging from a high of 16.32 to a low of 7.15 over the past year [2]. - The P/CF ratio for SUN is 7.24, compared to the industry average of 8.68, with a 52-week range from 5.35 to 9.17 [4]. - SUN's P/S ratio stands at 0.25, which is below the industry average of 0.56, indicating potential undervaluation [6]. Investment Strategy - Value investing is highlighted as a preferred strategy for identifying strong stocks, utilizing metrics and fundamental analysis to find undervalued companies [5]. - The Style Scores system developed by Zacks emphasizes stocks with strong value traits, particularly those with high Zacks Ranks and A grades in the Value category [3].