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Earthstone Energy (ESTE) Dips More Than Broader Markets: What You Should Know

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Earthstone Energy closed at $12.86 in the latest trading session, marking a -1.91% move from the prior day. This change lagged the S&P 500's daily loss of 1.81%. Elsewhere, the Dow lost 1.47%, while the tech-heavy Nasdaq lost 0.51%.

Coming into today, shares of the oil and gas company had lost 10.33% in the past month. In that same time, the Oils-Energy sector gained 9.18%, while the S&P 500 lost 1.84%.

Earthstone Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Earthstone Energy to post earnings of $0.37 per share. This would mark year-over-year growth of 311.11%. Our most recent consensus estimate is calling for quarterly revenue of $106.95 million, up 191.58% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Earthstone Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.31% lower. Earthstone Energy is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Earthstone Energy's current valuation metrics, including its Forward P/E ratio of 4.35. For comparison, its industry has an average Forward P/E of 5.77, which means Earthstone 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 has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow ESTE in the coming trading sessions, be sure to utilize Zacks.com.

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