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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 $3.90, marking a -0.76% move from the previous day. This move lagged the S&P 500's daily loss of 0.53%.

Prior to today's trading, shares of the oil and natural gas explorer had lost 3.2% over the past month. This has lagged the Oils-Energy sector's gain of 1.09% and the S&P 500's gain of 4.86% in that time.

Wall Street will be looking for positivity from Vaalco Energy as it approaches its next earnings report date. In that report, analysts expect Vaalco Energy to post earnings of $0.24 per share. This would mark a year-over-year decline of 53.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $111.74 million, up 0.68% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.88 per share and revenue of $458.63 million. These totals would mark changes of -40.94% and +29.44%, respectively, from last year.

Any recent changes to analyst estimates for Vaalco Energy should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained stagnant. Vaalco Energy is holding a Zacks Rank of #5 (Strong Sell) right now.

In terms of valuation, Vaalco Energy is currently trading at a Forward P/E ratio of 4.47. For comparison, its industry has an average Forward P/E of 4.47, which means Vaalco Energy is trading at a no noticeable deviation to the group.

The Oil and Gas - Exploration and Production - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 18% 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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