In the latest trading session, SM Energy (SM) closed at $18.34, marking a -1.24% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.25%.
Prior to today's trading, shares of the independent oil and gas company had lost 4.33% lagged the Oils-Energy sector's gain of 3.32% and the S&P 500's gain of 1.57%.
The investment community will be paying close attention to the earnings performance of SM Energy in its upcoming release. The company is forecasted to report an EPS of $0.82, showcasing a 57.07% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $792.61 million, down 6.99% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.36 per share and revenue of $3.28 billion. These totals would mark changes of -21.18% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SM Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 8.42% lower. SM Energy currently has a Zacks Rank of #3 (Hold).
In the context of valuation, SM Energy is at present trading with a Forward P/E ratio of 6.21. Its industry sports an average Forward P/E of 11.4, so one might conclude that SM Energy is trading at a discount comparatively.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SM Energy Company (SM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
