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Evolution Petroleum (EPM) Laps the Stock Market: Here's Why

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The latest trading session saw Evolution Petroleum (EPM - Free Report) ending at $6.14, denoting a +1.66% adjustment from its last day's close. This change outpaced the S&P 500's 0.11% gain on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the oil and gas company had gained 6.15% in the past month. In that same time, the Oils-Energy sector gained 5.98%, while the S&P 500 gained 3.55%.

The investment community will be paying close attention to the earnings performance of Evolution Petroleum in its upcoming release. The company is predicted to post an EPS of $0.04, indicating a 90.48% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $21.84 million, indicating a 40.78% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.21 per share and revenue of $88.68 million, which would represent changes of -79.21% and -31%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Evolution Petroleum. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Evolution Petroleum presently features a Zacks Rank of #4 (Sell).

Investors should also note Evolution Petroleum's current valuation metrics, including its Forward P/E ratio of 29.46. For comparison, its industry has an average Forward P/E of 11.01, 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 industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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