Sunoco LP (SUN) Investment Decision: Evaluating Wall Street's Bullish Views

Sunoco LP (SUN) has an average brokerage recommendation of 2.00, with 4 out of 7 recommendations being Strong Buy and 1 being Buy. While brokerage recommendations can be useful, studies have shown that they have little to no success guiding investors to choose stocks with the most potential for price appreciation. The Zacks Rank, a proprietary stock rating tool, can be used to validate brokerage recommendations and make a more informed investment decision.

Sunoco LP (SUN), an oil and gas company, has garnered mixed attention from brokerage analysts. The average brokerage recommendation for SUN is 2.00, with 4 out of 7 recommendations being Strong Buy and 1 being Buy. However, the efficacy of brokerage recommendations in predicting stock performance has been questioned by various studies [1].

To make a more informed investment decision, it is essential to validate brokerage recommendations using tools like the Zacks Rank. The Zacks Rank is a proprietary stock rating tool that evaluates a company's financial health, earnings revisions, and other factors to provide a more objective assessment of its investment potential.

Brokerage Recommendations for Sunoco LP (SUN)

According to the provided materials, the average brokerage recommendation for SUN is 2.00. This includes:
- 4 Strong Buy recommendations
- 1 Buy recommendation
- 2 Hold recommendations

Zacks Rank and Sunoco LP (SUN)

The Zacks Rank is a powerful tool that helps investors evaluate a stock's potential for price appreciation. Sunoco LP (SUN) currently holds a Zacks Rank of 2, which indicates a "Neutral" rating. This suggests that the stock may not exhibit significant price appreciation or depreciation in the near term.

Analysts' Opinions and Market Sentiment

Despite the mixed brokerage recommendations, Sunoco LP (SUN) has seen recent changes in analyst positions. For instance, LPL Financial LLC increased its stake in SUN by 3.9% during the first quarter of 2025, owning a total of 184,925 shares valued at approximately $10.7 million [2]. This increase suggests that some analysts view SUN as a potential investment opportunity.

Moreover, Sunoco LP recently announced a quarterly dividend increase, with the dividend per share rising to $0.9088 from $0.90, representing a yield of 7.0%. This move indicates that the company is committed to rewarding shareholders, which can positively impact market sentiment.

Conclusion

While brokerage recommendations can provide valuable insights, they should be validated using objective tools such as the Zacks Rank. Sunoco LP (SUN) currently holds a Zacks Rank of 2, indicating a neutral rating. This, combined with the mixed brokerage recommendations and recent analyst activity, suggests that investors should approach SUN with caution.

References

[1] https://stockinvest.us/stock/SUN
[2] https://www.marketbeat.com/instant-alerts/filing-lpl-financial-llc-purchases-6986-shares-of-sunoco-lp-nysesun-2025-08-09/