In the latest close session, SM Energy (SM) was down 2.31% at $17.78. This change lagged the S&P 500's 0.65% gain on the day. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.82%.
Shares of the independent oil and gas company have depreciated by 8.22% over the course of the past month, underperforming the Oils-Energy sector's gain of 0.68%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of SM Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 53.4% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $792.61 million, showing a 6.99% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.42 per share and revenue of $3.28 billion, which would represent changes of -20.29% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for SM Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, SM Energy boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, SM Energy is holding a Forward P/E ratio of 5.57. This signifies a discount in comparison to the average Forward P/E of 10.75 for its industry.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 32% echelons of all 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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SM Energy Company (SM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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