In the latest close session, SM Energy (SM) was down 1.31% at $33.11. This move lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.09%.
The stock of independent oil and gas company has fallen by 9.76% in the past month, lagging the Oils-Energy sector's gain of 0.04% and the S&P 500's loss of 0.24%.
The upcoming earnings release of SM Energy will be of great interest to investors. The company is forecasted to report an EPS of $1.81, showcasing a 36.09% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.89 billion, showing a 132.36% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.49 per share and revenue of $7.38 billion, which would represent changes of +38.19% and +133.85%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for SM Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.42% higher within the past month. SM Energy presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SM Energy has a Forward P/E ratio of 4.48 right now. For comparison, its industry has an average Forward P/E of 8.99, which means SM Energy is trading at a discount to the group.
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 161, putting it in the bottom 35% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).