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Hess (HES) Gains But Lags Market: What You Should Know
Hess (HES - Free Report) closed at $154.80 in the latest trading session, marking a +0.63% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 10%.
Prior to today's trading, shares of the oil and gas producer had gained 13.69% over the past month. This has outpaced the Oils-Energy sector's gain of 5.98% and the S&P 500's gain of 2.3% in that time.
Investors will be hoping for strength from Hess as it approaches its next earnings release, which is expected to be January 25, 2023. The company is expected to report EPS of $1.66, up 95.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.76 billion, up 22.44% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Hess. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 7.7% lower. Hess is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Hess is currently trading at a Forward P/E ratio of 18.24. Its industry sports an average Forward P/E of 11.83, so we one might conclude that Hess is trading at a premium comparatively.
The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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.