In the latest trading session, SM Energy (SM) closed at $26.07, marking a -2.51% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.47%. On the other hand, the Dow registered a gain of 0.11%, and the technology-centric Nasdaq increased by 0.94%.
Prior to today's trading, shares of the independent oil and gas company had gained 2.1% lagged the Oils-Energy sector's gain of 2.51% and the S&P 500's gain of 2.32%.
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 $1.37 per share. This would mark a year-over-year decline of 15.43%. Alongside, our most recent consensus estimate is anticipating revenue of $850.96 million, indicating a 32.22% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.82 per share and a revenue of $3.33 billion, indicating changes of -14.41% and +23.89%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for SM Energy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.02% lower. SM Energy is currently a Zacks Rank #3 (Hold).
In terms of valuation, SM Energy is presently being traded at a Forward P/E ratio of 4.6. This denotes a discount relative to the industry average Forward P/E of 10.53.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 37% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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