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SM Energy (SM) Registers a Bigger Fall Than the Market: Important Facts to Note

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SM Energy (SM - Free Report) ended the recent trading session at $27.55, demonstrating a -1.36% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.03%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.13%.

Heading into today, shares of the independent oil and gas company had gained 17.7% over the past month, outpacing the Oils-Energy sector's gain of 5.57% and the S&P 500's gain of 0.6%.

Investors will be eagerly watching for the performance of SM Energy in its upcoming earnings disclosure. On that day, SM Energy is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 32.97%. At the same time, our most recent consensus estimate is projecting a revenue of $777.04 million, reflecting a 22.46% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.67 per share and a revenue of $3.24 billion, indicating changes of -16.62% and +20.58%, respectively, from the former year.

Any recent changes to analyst estimates for SM Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. SM Energy presently features a Zacks Rank of #5 (Strong Sell).

In terms of valuation, SM Energy is presently being traded at a Forward P/E ratio of 4.93. This indicates a discount in contrast to its industry's Forward P/E of 12.04.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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