In the latest market close, SM Energy (SM – Free Report) reached $43.35, with a +1.64% movement compared to the previous day. The stock outpaced the S&P 500’s daily loss of 1.54%. On the other hand, the Dow registered a loss of 1.63%, and the technology-centric Nasdaq decreased by 1.63%.
Prior to today’s trading, shares of the independent oil and gas company had gained 5.08% over the past month. This has outpaced the Oils-Energy sector’s loss of 11.05% and the S&P 500’s loss of 2.2% in that time.
The investment community will be paying close attention to the earnings performance of SM Energy in its upcoming release. The company is forecasted to report an EPS of $1.91, showcasing a 22.44% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $862.06 million, indicating a 41.62% growth compared to the corresponding quarter of the prior year.
Investors should also pay attention to any latest changes in analyst estimates for SM Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, SM Energy is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, SM Energy is currently exchanging hands at a Forward P/E ratio of 5.91. This expresses a discount compared to the average Forward P/E of 9.93 of its industry.
The Oil and Gas – Exploration and Production – United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SM in the coming trading sessions, be sure to utilize Zacks.com.
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