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

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In the latest close session, SM Energy (SM - Free Report) was down 2.17% at $18.51. The stock fell short of the S&P 500, which registered a loss of 0.03% for the day. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.09%.

The independent oil and gas company's shares have seen an increase of 1.01% over the last month, surpassing the Oils-Energy sector's gain of 0.61% and falling behind the S&P 500's gain of 2.57%.

The upcoming earnings release of SM Energy will be of great interest to investors. The company's upcoming EPS is projected at $0.89, signifying a 53.40% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $792.61 million, indicating a 6.99% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $5.42 per share and a revenue of $3.28 billion, demonstrating changes of -20.29% and +21.92%, respectively, from the preceding year.

Any recent changes to analyst estimates for SM Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.56% rise in the Zacks Consensus EPS estimate. At present, SM Energy boasts a Zacks Rank of #3 (Hold).

In terms of valuation, SM Energy is presently being traded at a Forward P/E ratio of 3.49. This represents a discount compared to its industry average Forward P/E of 10.37.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 24% of all industries, numbering over 250.

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.

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


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