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SM Energy (CRUS) is a Zacks Rank #1 (Strong Buy) that sports a B for Value and a A for Growth. This energy name is seeing some strength as oil prices press higher on geopolitical concerns. I should also note that an astute Stock Strategist from Zacks Investment Research highlighted this stock on his Aggressive Growth Stock video this week. You can find that video here. Let’s explore more about this stock in this Bull Of The Day article.
Description
Denver, CO-based SM Energy Company, previously known as St. Mary Land & Exploration Company, is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. The company was founded in 1908 and incorporated in Delaware in the year 1915.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For SM, I see a decent history of beating the Zacks Consensus Estimate. There are three beats over the last four quarters. The three most recent quarters were the beats.
The average positive earnings surprise over the last fours quarters works out to be 126%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For SM, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has increased from $0.77 to $0.82.
Next quarter has dipped from $1.38 to $1.64.
The full fiscal year 2021 has moved from $1.40 to $1.46.
Next fiscal year has moved to $6.36 and that is up from $5.18.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for SM Energy (SM - Free Report) is still very attractive despite posting solid topline growth and being poised to show some amazing bottomline growth over the next year. I see the stock trading at a 5x forward earnings multiple and 2.5x price to book multiple. Those are very low levels when you consider the 170% topline growth the company posted in the most recent quarter. Margins have also moved a lot higher over the last few quarters and higher margins will lead to higher EPS numbers.
Chart
SM Energy Company Price, Consensus and EPS Surprise
Image: Bigstock
Bull Of The Day: SM Energy (SM)
SM Energy (CRUS) is a Zacks Rank #1 (Strong Buy) that sports a B for Value and a A for Growth. This energy name is seeing some strength as oil prices press higher on geopolitical concerns. I should also note that an astute Stock Strategist from Zacks Investment Research highlighted this stock on his Aggressive Growth Stock video this week. You can find that video here. Let’s explore more about this stock in this Bull Of The Day article.
Description
Denver, CO-based SM Energy Company, previously known as St. Mary Land & Exploration Company, is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. The company was founded in 1908 and incorporated in Delaware in the year 1915.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For SM, I see a decent history of beating the Zacks Consensus Estimate. There are three beats over the last four quarters. The three most recent quarters were the beats.
The average positive earnings surprise over the last fours quarters works out to be 126%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For SM, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has increased from $0.77 to $0.82.
Next quarter has dipped from $1.38 to $1.64.
The full fiscal year 2021 has moved from $1.40 to $1.46.
Next fiscal year has moved to $6.36 and that is up from $5.18.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for SM Energy (SM - Free Report) is still very attractive despite posting solid topline growth and being poised to show some amazing bottomline growth over the next year. I see the stock trading at a 5x forward earnings multiple and 2.5x price to book multiple. Those are very low levels when you consider the 170% topline growth the company posted in the most recent quarter. Margins have also moved a lot higher over the last few quarters and higher margins will lead to higher EPS numbers.
Chart
SM Energy Company Price, Consensus and EPS Surprise
SM Energy Company price-consensus-eps-surprise-chart | SM Energy Company Quote