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SM Energy (SM) Rises Higher Than Market: Key Facts

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SM Energy (SM - Free Report) ended the recent trading session at $27.13, demonstrating a +1.23% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.24%.

Heading into today, shares of the independent oil and gas company had gained 5.26% over the past month, lagging the Oils-Energy sector's gain of 6.38% and the S&P 500's gain of 6.6%.

Analysts and investors alike will be keeping a close eye on the performance of SM Energy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.24, marking a 32.97% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $777.04 million, showing a 22.46% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.67 per share and a revenue of $3.24 billion, demonstrating changes of -16.62% and +20.58%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for SM Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. As of now, SM Energy holds a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that SM Energy has a Forward P/E ratio of 4.73 right now. This valuation marks a discount compared to its industry average Forward P/E of 11.11.

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 175, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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