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SM Energy (SM) Stock Sinks As Market Gains: Here's Why

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SM Energy (SM - Free Report) closed the most recent trading day at $25.71, moving -1.76% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.26%.

The stock of independent oil and gas company has fallen by 6.3% in the past month, lagging the Oils-Energy sector's loss of 1.13% and the S&P 500's gain of 4.51%.

Investors will be eagerly watching for the performance of SM Energy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 31, 2025. It is anticipated that the company will report an EPS of $1.21, marking a 34.59% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $784.5 million, indicating a 23.63% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.8 per share and a revenue of $3.3 billion, signifying shifts of -14.71% and +22.62%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for SM Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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.

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 moved 2.4% higher. SM Energy is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, SM Energy is currently trading at a Forward P/E ratio of 4.51. This indicates a discount in contrast to its industry's Forward P/E of 11.03.

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 186, which puts it in the bottom 25% 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.

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


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