Sunoco (SUN) Valuation Check as It Revs Up Brand Strategy with New INDYCAR Partnership

Racing Partnership Puts Brand Strategy in the Spotlight

Sunoco (SUN) is jumping back into the NTT INDYCAR SERIES as a full time primary partner with Chip Ganassi Racing from 2026, a marketing move that directly targets brand visibility and long term demand.

See our latest analysis for Sunoco.

The stock has cooled off a bit in recent weeks, but with the share price at $52.67 and a 90 day share price return of 7.23 percent, that longer three and five year total shareholder return record suggests momentum is still broadly intact.

If this kind of brand driven story appeals to you, it is a good moment to broaden the lens and uncover fast growing stocks with high insider ownership.

Valuation is where the story gets interesting, with Sunoco trading below analyst targets and showing a strong value score. However, do these metrics signal a genuine buying opportunity, or has the market already priced in future growth?

Most Popular Narrative: 18.6% Undervalued

Compared to Sunoco's last close at $52.67, the most widely followed narrative points to a higher fair value anchored in aggressive earnings expansion.

The NuStar and upcoming Parkland and TanQuid acquisitions are expected to deliver substantial double digit accretion and cost synergies, further increasing operating leverage and net margins while materially enhancing Sunoco's international and midstream asset footprint.

Read the complete narrative.

Want to see how bold revenue growth, rising margins, and a sharply lower future earnings multiple combine into that upside case? The full narrative unpacks every assumption.

Result: Fair Value of $64.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, long term fuel demand uncertainty and higher leverage from acquisitions could derail the growth story if volumes soften or synergies disappoint.

Find out about the key risks to this Sunoco narrative.

Another Angle on Valuation

Step away from analyst targets and the story looks less clear. On a price to earnings basis, Sunoco trades at 24.6 times earnings, far richer than the US Oil and Gas average of 12.8 times and its peers at 21 times, yet still below a 29.2 times fair ratio. Is this a calculated premium or creeping valuation risk?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Sunoco Narrative

And if this perspective does not fully resonate with you, or you prefer to dig into the numbers yourself, you can craft a custom view in minutes, Do it your way.

A great starting point for your Sunoco research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

Ready for your next investing move?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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