In the latest trading session, SM Energy (SM) closed at $32.21, marking a -5.15% move from the previous day. This change lagged the S&P 500's 2.65% loss on the day. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
Coming into today, shares of the independent oil and gas company had gained 16.7% in the past month. In that same time, the Oils-Energy sector lost 3.06%, while the S&P 500 gained 5.47%.
The investment community will be paying close attention to the earnings performance of SM Energy in its upcoming release. It is anticipated that the company will report an EPS of $2.01, marking a 34% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.1 billion, indicating a 164.38% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.47 per share and revenue of $7.59 billion, which would represent changes of +37.82% and +140.73%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for SM Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.08% upward. SM Energy is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, SM Energy is at present trading with a Forward P/E ratio of 4.55. This signifies a discount in comparison to the average Forward P/E of 9.89 for its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 39% of over 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).