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Eni Stock Looks Undervalued Ahead of Q1 Results: Time to Buy?
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Key Takeaways
Eni reports Q1 2026 after the April 24 close; consensus EPS is $1.13 on $22.7B revenue.
Brent averaged $66.6, $70.89 and $103.13 in January to March, a favorable pricing backdrop for output.
E is up 87.9% in a year but trades at 6.47x EV/EBITDA versus the industry's 6.64.
Eni SpA (E - Free Report) is set to report first-quarter 2026 results on April 24, after the closing bell.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.13 per share, implying an improvement of almost 23% from the year-ago reported number. It has witnessed one upward estimate revision in the past seven days. The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $22.7 billion, suggesting a 6% decline from the year-ago figure.
E beat on earnings in each of the trailing four quarters, delivering an average surprise of 13.5%. This is depicted in the graph below:
Image Source: Zacks Investment Research
Q1 Earnings Whispers for E
Our proven model doesn’t predict an earnings beat for E this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is just not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors to Note Ahead of E’s Q1 Results
To have an idea of how oil prices behaved in the March quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Europe Brent spot prices for January, February and March of this year were $66.6, $70.89 and $103.13 per barrel, respectively, per EIA data. The crude pricing environment was quite favorable for exploration and production activities of E, especially in the last month of the quarter. The supporting commodity prices are likely to have aided production volumes.
E’s Price Performance & Valuation
E stock has jumped 87.9% over the past year, outperforming the industry’s 44.1% growth. BP plc (BP - Free Report) , another integrated major, has surged 59.9% over the same time frame, while Exxon Mobil Corporation (XOM - Free Report) has gained 37.6%.
One-Year Price Chart
Image Source: Zacks Investment Research
Although E's prices outperformed the industry, the company appears relatively undervalued. The energy player's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 6.47, reflecting that it is trading at a discount compared with the industry average of 6.64. While BP is valued lower at 3.75x, XOM is valued higher at 9.53x.
Image Source: Zacks Investment Research
Investment Thesis of E
The price of Brent crude is trading at more than $100 per barrel, per OilPrice.com, thanks to the ongoing tensions in the Middle East. Also, EIA in its latest short-term energy outlook stated its expectations for the spot average price of Brent crude for this year at $96 per barrel. The highly favorable crude pricing environment will probably aid E, like XOM and BP, to produce at a level that will aid it to meet its 2025-2028 medium-term plan.
Since the integrated energy major generates the lion’s share of its earnings from exploration and production activities, the overall business outlook looks highly promising. The company is not heavily reliant on borrowing, and expects gearing to lie between 10% and 15% this year. Thus, even if the business scenario turns unfavorable, Eni can rely on its strong balance sheet to stay afloat.
Last Word
Given the backdrop, it might not be wise for investors to bet on the undervalued stock right away.
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Eni Stock Looks Undervalued Ahead of Q1 Results: Time to Buy?
Key Takeaways
Eni SpA (E - Free Report) is set to report first-quarter 2026 results on April 24, after the closing bell.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.13 per share, implying an improvement of almost 23% from the year-ago reported number. It has witnessed one upward estimate revision in the past seven days. The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $22.7 billion, suggesting a 6% decline from the year-ago figure.
E beat on earnings in each of the trailing four quarters, delivering an average surprise of 13.5%. This is depicted in the graph below:
Q1 Earnings Whispers for E
Our proven model doesn’t predict an earnings beat for E this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is just not the case here.
The leading integrated player has an Earnings ESP of 0.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors to Note Ahead of E’s Q1 Results
To have an idea of how oil prices behaved in the March quarter, let's analyze the commodity prices from the data provided by the U.S. Energy Information Administration (“EIA”). The average Europe Brent spot prices for January, February and March of this year were $66.6, $70.89 and $103.13 per barrel, respectively, per EIA data. The crude pricing environment was quite favorable for exploration and production activities of E, especially in the last month of the quarter. The supporting commodity prices are likely to have aided production volumes.
E’s Price Performance & Valuation
E stock has jumped 87.9% over the past year, outperforming the industry’s 44.1% growth. BP plc (BP - Free Report) , another integrated major, has surged 59.9% over the same time frame, while Exxon Mobil Corporation (XOM - Free Report) has gained 37.6%.
One-Year Price Chart
Although E's prices outperformed the industry, the company appears relatively undervalued. The energy player's current trailing 12-month enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio is 6.47, reflecting that it is trading at a discount compared with the industry average of 6.64. While BP is valued lower at 3.75x, XOM is valued higher at 9.53x.
Investment Thesis of E
The price of Brent crude is trading at more than $100 per barrel, per OilPrice.com, thanks to the ongoing tensions in the Middle East. Also, EIA in its latest short-term energy outlook stated its expectations for the spot average price of Brent crude for this year at $96 per barrel. The highly favorable crude pricing environment will probably aid E, like XOM and BP, to produce at a level that will aid it to meet its 2025-2028 medium-term plan.
Since the integrated energy major generates the lion’s share of its earnings from exploration and production activities, the overall business outlook looks highly promising. The company is not heavily reliant on borrowing, and expects gearing to lie between 10% and 15% this year. Thus, even if the business scenario turns unfavorable, Eni can rely on its strong balance sheet to stay afloat.
Last Word
Given the backdrop, it might not be wise for investors to bet on the undervalued stock right away.