SM Energy (SM) closed the most recent trading day at $26.08, moving -2.36% from the previous trading session. This change lagged the S&P 500's daily gain of 0.27%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.37%.
The stock of independent oil and gas company has risen by 4.05% in the past month, leading the Oils-Energy sector's gain of 0.87% and the S&P 500's gain of 1.85%.
The upcoming earnings release of SM Energy will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.37, reflecting a 15.43% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $850.96 million, up 32.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.82 per share and revenue of $3.33 billion, which would represent changes of -14.41% and +23.89%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SM Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.02% fall in the Zacks Consensus EPS estimate. SM Energy is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SM Energy is currently trading at a Forward P/E ratio of 4.59. This signifies a discount in comparison to the average Forward P/E of 10.52 for its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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SM Energy Company (SM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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