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SM Energy (SM) Gains As Market Dips: What You Should Know

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SM Energy (SM - Free Report) closed at $48.68 in the latest trading session, marking a +1.02% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.5%.

Heading into today, shares of the independent oil and gas company had gained 32.72% over the past month, outpacing the Oils-Energy sector's gain of 3.39% and the S&P 500's loss of 6.69% in that time.

Investors will be hoping for strength from SM Energy as it approaches its next earnings release. On that day, SM Energy is projected to report earnings of $2.25 per share, which would represent year-over-year growth of 22400%. Meanwhile, our latest consensus estimate is calling for revenue of $772.49 million, up 37% from the prior-year quarter.

SM's full-year Zacks Consensus Estimates are calling for earnings of $9.16 per share and revenue of $3.15 billion. These results would represent year-over-year changes of +395.14% and +20.24%, respectively.

It is also important to note the recent changes to analyst estimates for SM Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate has moved 8.81% higher. SM Energy currently has a Zacks Rank of #3 (Hold).

Digging into valuation, SM Energy currently has a Forward P/E ratio of 5.26. This valuation marks a discount compared to its industry's average Forward P/E of 5.53.

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 24, putting it in the top 10% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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