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Northern Oil and Gas (NOG) Gains But Lags Market: What You Should Know

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Northern Oil and Gas (NOG - Free Report) closed at $10.34 in the latest trading session, marking a +1.37% move from the prior day. The stock lagged the S&P 500's daily gain of 1.61%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 2.55%.

Coming into today, shares of the independent oil and gas company had gained 16.44% in the past month. In that same time, the Oils-Energy sector gained 2.81%, while the S&P 500 lost 0.35%.

Wall Street will be looking for positivity from NOG as it approaches its next earnings report date. On that day, NOG is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $115.47 million, down 28.15% from the year-ago period.

Any recent changes to analyst estimates for NOG should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 12.09% higher within the past month. NOG is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, NOG is currently trading at a Forward P/E ratio of 4.41. For comparison, its industry has an average Forward P/E of 11.78, which means NOG 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 group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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