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

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In the latest trading session, Vaalco Energy (EGY - Free Report) closed at $5.37, marking a -1.29% move from the previous day. This change lagged the S&P 500's 1.15% loss on the day. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the oil and natural gas explorer had lost 29.35% over the past month. This has lagged the Oils-Energy sector's gain of 2.96% and the S&P 500's gain of 1.44% in that time.

Vaalco Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Vaalco Energy to post earnings of $0.80 per share. This would mark year-over-year growth of 471.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $97.64 million, up 107.66% from the year-ago period.

EGY's full-year Zacks Consensus Estimates are calling for earnings of $2.96 per share and revenue of $394.03 million. These results would represent year-over-year changes of +116.06% and +97.93%, respectively.

It is also important to note the recent changes to analyst estimates for Vaalco Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Vaalco Energy is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Vaalco Energy has a Forward P/E ratio of 1.84 right now. This represents a discount compared to its industry's average Forward P/E of 2.82.

The Oil and Gas - Exploration and Production - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.

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


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