Diamonds and Dogs
Energy looks good. One of the few sectors to trade higher last month, Canadian oil sands company, Suncor Energy (SU) is jumping 4% to a two month high thanks to an upgrade with a $41 price target. Suncor has been outperforming the rest of the energy sector up 12% in the last year while the energy sector in general was negative last year and negative this year, Suncor has boosting its performance with strong cash flow and shareholder buybacks.
Is Micron (MU) cyclical or not? The DRAM maker is down 7% on a downgrade to a sell at UBS as that analyst says the company is still cyclical and they expect big earnings estimate cuts going forward. Micron currently trades for just 5 times earnings so investors may be expecting earnings cuts. Otherwise the company should come in with a share buyback and or initiate a dividend. Time will tell.