Sunoco Stock

Sunoco stock investment info

Sunoco (NYSE: SUN) is over a $5 billon company with its homebase in Philadelphia, PA. Sunoco, Inc. is petroleum refiner, petroleum marketer, chemical manufacturing, and some interests in cokemaking. As the oil bull market raged on Sunoco stock began to see its margins squeezed as the crack spreads tightened. Sunoco stock got cut by nearly 50% off of its highs. Other US based energy companies or competitors to Sunoco stock include: Exxon (NYSE: XOM), Chevron (NYSE: CVX), Valero Corporation (NYSE: VLO), Hess Corp (NYSE: HES), and ConocoPhillips (NYSE: COP).

Long term, Sunoco stock gives petroleum and oil and energy investors a strong growth rate of despite slimming margins. Analysts estimate Sunoco stock short term growth rate will continue to decline, perhaps precipitously. Its long term growth rate is estimated at 5.0%. The 2006 and 2007 trailing price to earnings ranged from around 5 to 10 times earnings, while its forward price-to-earnings ranged from 10-22 times forward earnings, including a precipitous decline after it reported its first quarter 2008 loss of 50 cents per share. Of course, Sunoco stock faces its largest risk in commodity price fluctuation, primarily because of its limited capacity in refining – Sunoco focuses almost primarily on refining light sweet crude. On the flip side, Sunoco has been able to focus its line of products on high quality refined petroleum.

With Sunoco stock beta registering at 1.16 and a dividend of $1.20 per share, the equity is an appealing longer term investment for your IRA or self-directed portfolio. S&P sees the risk assessment of Sunoco as low relatively to the S&P 500. As of May 2008, most analysts remained positive on the sector based on attractive valuations and increasing signs that margins were improving for Sunoco stock and its peers.