In the latest trading session, SM Energy (SM) closed at $19.18, marking a +2.68% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.5%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.43%.
Shares of the independent oil and gas company have appreciated by 0.92% over the course of the past month, underperforming the Oils-Energy sector's gain of 7.06%, and outperforming the S&P 500's gain of 0.18%.
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 $0.77 per share. This would mark a year-over-year decline of 59.69%. Alongside, our most recent consensus estimate is anticipating revenue of $773.28 million, indicating a 9.26% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.34 per share and a revenue of $3.26 billion, indicating changes of -21.47% and 0%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.06% higher. Currently, SM Energy is carrying a Zacks Rank of #5 (Strong Sell).
Digging into valuation, SM Energy currently has a Forward P/E ratio of 5.2. This indicates a discount in contrast to its industry's Forward P/E of 12.51.
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 237, which puts it in the bottom 4% 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.
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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