SM Energy (SM) Laps the Stock Market: Here's Why
The latest trading session saw SM Energy (SM) ending at $42.69, denoting a +0.61% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.
The independent oil and gas company's stock has climbed by 4.77% in the past month, exceeding the Oils-Energy sector's loss of 6.86% and the S&P 500's gain of 3.48%.
Market participants will be closely following the financial results of SM Energy in its upcoming release. The company plans to announce its earnings on October 31, 2024. The company is expected to report EPS of $1.56, down 9.83% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $664.81 million, indicating a 3.73% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.06 per share and a revenue of $2.76 billion, indicating changes of +19.86% and +16.07%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SM Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 witnessed a 2.78% decrease. As of now, SM Energy holds a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that SM Energy has a Forward P/E ratio of 6.01 right now. This represents a discount compared to its industry's average Forward P/E of 9.58.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 247, this industry ranks in the bottom 2% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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SM Energy Company (SM) : Free Stock Analysis Report