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

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Earthstone Energy (ESTE - Free Report) closed the most recent trading day at $12.32, moving +0.9% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.51%. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the oil and gas company had lost 14.74% in the past month. In that same time, the Oils-Energy sector lost 13.2%, while the S&P 500 lost 9.52%.

Investors will be hoping for strength from Earthstone Energy as it approaches its next earnings release. The company is expected to report EPS of $1.73, up 394.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $397.82 million, up 260.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.85 per share and revenue of $1.44 billion. These totals would mark changes of +368% and +243.19%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Earthstone 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.38% higher. Earthstone Energy currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Earthstone Energy currently has a Forward P/E ratio of 2.09. Its industry sports an average Forward P/E of 4.47, so we one might conclude that Earthstone Energy is trading at a discount comparatively.

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 27, which puts it in the top 11% 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.

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