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Hess (HES) Gains But Lags Market: What You Should Know

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Hess (HES - Free Report) closed at $124.88 in the latest trading session, marking a +0.04% move from the prior day. This change lagged the S&P 500's 1.68% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq lost 1.7%.

Coming into today, shares of the oil and gas producer had lost 15.09% in the past month. In that same time, the Oils-Energy sector lost 8.65%, while the S&P 500 lost 6.68%.

Investors will be hoping for strength from Hess as it approaches its next earnings release. In that report, analysts expect Hess to post earnings of $1.42 per share. This would mark year-over-year growth of 9.23%. Our most recent consensus estimate is calling for quarterly revenue of $2.47 billion, up 4.24% from the year-ago period.

HES's full-year Zacks Consensus Estimates are calling for earnings of $6.96 per share and revenue of $10.85 billion. These results would represent year-over-year changes of -2.11% and -6.26%, respectively.

Investors might also notice recent changes to analyst estimates for Hess. 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.

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.

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. The Zacks Consensus EPS estimate has moved 10.9% lower within the past month. Hess currently has a Zacks Rank of #3 (Hold).

Investors should also note Hess's current valuation metrics, including its Forward P/E ratio of 17.93. Its industry sports an average Forward P/E of 10.91, 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 group has a Zacks Industry Rank of 103, putting it in the top 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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