SM Energy (SM) closed the most recent trading day at $18.93, moving -2.77% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.54%. On the other hand, the Dow registered a gain of 1.05%, and the technology-centric Nasdaq increased by 0.56%.
Shares of the independent oil and gas company have appreciated by 1.78% over the course of the past month, underperforming the Oils-Energy sector's gain of 10.35%, and outperforming the S&P 500's gain of 0.74%.
Investors will be eagerly watching for the performance of SM Energy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.77, marking a 59.69% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $773.28 million, indicating a 9.26% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $3.26 billion. These totals would mark changes of -21.47% and 0%, respectively, from last year.
Any recent changes to analyst estimates for SM Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.97% decrease. SM Energy presently features a Zacks Rank of #5 (Strong Sell).
Looking at valuation, SM Energy is presently trading at a Forward P/E ratio of 6.34. For comparison, its industry has an average Forward P/E of 13.91, which means SM Energy is trading at a discount to the group.
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 230, finds itself in the bottom 7% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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