SM Energy (SM) Gains As Market Dips: What You Should Know
SM Energy (SM) closed at $45.83 in the latest trading session, marking a +1.66% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.96%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 1.18%.
Shares of the independent oil and gas company have appreciated by 12.34% over the course of the past month, outperforming the Oils-Energy sector's gain of 7.24% and the S&P 500's gain of 4.3%.
The investment community will be paying close attention to the earnings performance of SM Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $1.53, reflecting a 11.56% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $657.51 million, indicating a 2.59% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.96 per share and revenue of $2.74 billion, indicating changes of +18.17% and +15.35%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates 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 company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been an 8.08% fall in the Zacks Consensus EPS estimate. Currently, SM Energy is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, SM Energy is at present trading with a Forward P/E ratio of 6.48. This represents a discount compared to its industry's average Forward P/E of 10.15.
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 236, finds itself in the bottom 7% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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SM Energy Company (SM) : Free Stock Analysis Report