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Goodrich Petroleum (GDP) Gains But Lags Market: What You Should Know

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Goodrich Petroleum closed the most recent trading day at $22, moving +0.32% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.83%.

Heading into today, shares of the independent oil and gas company had gained 5.79% over the past month, lagging the Oils-Energy sector's gain of 9.14% and outpacing the S&P 500's loss of 3.68% in that time.

Investors will be hoping for strength from GDP as it approaches its next earnings release. In that report, analysts expect GDP to post earnings of $0.89 per share. This would mark year-over-year growth of 594.44%. Meanwhile, our latest consensus estimate is calling for revenue of $43.14 million, up 100.91% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.73 per share and revenue of $160.14 million, which would represent changes of +1676.19% and +60.47%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for GDP. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. GDP currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, GDP currently has a Forward P/E ratio of 5.88. This valuation marks a discount compared to its industry's average Forward P/E of 10.9.

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 63, which puts it in the top 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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