In the latest close session, SM Energy (SM) was down 6.32% at $34.64. This change lagged the S&P 500's 1.49% gain on the day. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 2.26%.
Prior to today's trading, shares of the independent oil and gas company had lost 0.62% lagged the Oils-Energy sector's gain of 0.51% and the S&P 500's gain of 0.1%.
The investment community will be paying close attention to the earnings performance of SM Energy in its upcoming release. In that report, analysts expect SM Energy to post earnings of $1.9 per share. This would mark year-over-year growth of 42.86%. Alongside, our most recent consensus estimate is anticipating revenue of $1.98 billion, indicating a 143.38% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.48 per share and revenue of $7.47 billion, which would represent changes of +38.01% and +136.99%, respectively, from the prior year.
Any recent changes to analyst estimates for SM Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.58% upward. SM Energy presently features a Zacks Rank of #3 (Hold).
In terms of valuation, SM Energy is currently trading at a Forward P/E ratio of 4.94. This denotes a discount relative to the industry average Forward P/E of 9.47.
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 104, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).