In the latest close session, SM Energy (SM) was up +2.44% at $39.03. The stock's change was more than the S&P 500's daily loss of 0.48%. On the other hand, the Dow registered a loss of 0.29%, and the technology-centric Nasdaq decreased by 0.56%.
The stock of independent oil and gas company has risen by 12.89% in the past month, leading the Oils-Energy sector's gain of 4.87% and the S&P 500's loss of 0.82%.
Analysts and investors alike will be keeping a close eye on the performance of SM Energy in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.9, showcasing a 42.86% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2 billion, up 146.18% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.48 per share and a revenue of $7.59 billion, signifying shifts of +38.01% and +140.78%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SM Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.32% increase. Right now, SM Energy possesses a Zacks Rank of #3 (Hold).
Digging into valuation, SM Energy currently has a Forward P/E ratio of 5.1. This indicates a discount in contrast to its industry's Forward P/E of 10.03.
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 85, placing it within the top 35% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).