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SM Energy (SM) Outperforms Broader Market: What You Need to Know

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SM Energy (SM - Free Report) closed the most recent trading day at $23.08, moving +2.1% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.56%. Elsewhere, the Dow saw an upswing of 1.29%, while the tech-heavy Nasdaq appreciated by 2.21%.

Prior to today's trading, shares of the independent oil and gas company had lost 15.48% lagged the Oils-Energy sector's loss of 2.93% and the S&P 500's gain of 0.41%.

Analysts and investors alike will be keeping a close eye on the performance of SM Energy in its upcoming earnings disclosure. The company is expected to report EPS of $1.38, down 14.81% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $841.04 million, indicating a 30.67% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.78 per share and a revenue of $3.32 billion, indicating changes of -15% and +23.23%, respectively, from the former year.

Investors should also take note of any recent adjustments 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.65% lower. SM Energy presently features a Zacks Rank of #5 (Strong Sell).

In terms of valuation, SM Energy is currently trading at a Forward P/E ratio of 3.91. This valuation marks a discount compared to its industry average Forward P/E of 9.34.

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 226, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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