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Here's Why SM Energy (SM) Fell More Than Broader Market

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SM Energy (SM - Free Report) ended the recent trading session at $25.34, demonstrating a -2.28% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 0.92%.

Prior to today's trading, shares of the independent oil and gas company had gained 4.05% lagged the Oils-Energy sector's gain of 6.03% and the S&P 500's gain of 5.22%.

Analysts and investors alike will be keeping a close eye on the performance of SM Energy in its upcoming earnings disclosure. In that report, analysts expect SM Energy to post earnings of $1.22 per share. This would mark a year-over-year decline of 34.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $781.71 million, up 23.19% from the year-ago period.

SM's full-year Zacks Consensus Estimates are calling for earnings of $5.85 per share and revenue of $3.28 billion. These results would represent year-over-year changes of -13.97% and +21.91%, respectively.

Investors should also note any recent changes to analyst estimates for SM Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.18% increase. Currently, SM Energy is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, SM Energy is presently being traded at a Forward P/E ratio of 4.44. Its industry sports an average Forward P/E of 10.83, so one might conclude that SM Energy is trading at a discount comparatively.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 39% of all industries, numbering over 250.

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.

To follow SM in the coming trading sessions, be sure to utilize Zacks.com.


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