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Evolution Petroleum (EPM) Dips More Than Broader Markets: What You Should Know

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Evolution Petroleum (EPM - Free Report) closed the most recent trading day at $6.47, moving -0.92% from the previous trading session. This change lagged the S&P 500's 0.23% loss on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the oil and gas company had lost 25.8% over the past month, lagging the Oils-Energy sector's gain of 2.43% and the S&P 500's loss of 1.43% in that time.

Investors will be hoping for strength from Evolution Petroleum as it approaches its next earnings release. In that report, analysts expect Evolution Petroleum to post earnings of $0.07 per share. This would mark a year-over-year decline of 76.67%. Meanwhile, our latest consensus estimate is calling for revenue of $21.63 million, down 45.67% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.53 per share and revenue of $96.55 million. These totals would mark changes of -47.52% and -24.87%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Evolution Petroleum. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 51.39% lower. Evolution Petroleum is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Evolution Petroleum's current valuation metrics, including its Forward P/E ratio of 12.44. For comparison, its industry has an average Forward P/E of 9.26, which means Evolution Petroleum is trading at a premium to the group.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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