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

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SM Energy (SM - Free Report) closed the most recent trading day at $31.83, moving -1.18% from the previous trading session. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.28%.

Heading into today, shares of the independent oil and gas company had lost 32.78% over the past month, lagging the Oils-Energy sector's loss of 13.93% and the S&P 500's gain of 1.51% in that time.

SM Energy will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2022. In that report, analysts expect SM Energy to post earnings of $2.13 per share. This would mark year-over-year growth of 21200%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $773.45 million, up 37.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.33 per share and revenue of $3.1 billion, which would represent changes of +350.27% and +18.28%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SM Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 9.07% lower. SM Energy currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that SM Energy has a Forward P/E ratio of 3.87 right now. This valuation marks a discount compared to its industry's average Forward P/E of 3.99.

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 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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