We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SM Energy Company (SM) Hits Fresh High: Is There Still Room to Run?
Read MoreHide Full Article
A strong stock as of late has been SM Energy (SM - Free Report) . Shares have been marching higher, with the stock up 23.2% over the past month. The stock hit a new 52-week high of $33.92 in the previous session. SM Energy has gained 77.4% since the start of the year compared to the 32% gain for the Zacks Oils-Energy sector and the 31.6% return for the Zacks Oil and Gas - Exploration and Production - United States industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, SM Energy reported EPS of $1.55 versus consensus estimate of $1.29.
For the current fiscal year, SM Energy is expected to post earnings of $7.18 per share on $7.37 in revenues. This represents a 32.47% change in EPS on a 133.58% change in revenues. For the next fiscal year, the company is expected to earn $7.83 per share on $7.47 in revenues. This represents a year-over-year change of 9.15% and 1.33%, respectively.
Valuation Metrics
SM Energy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
SM Energy has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 4.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.2X. On a trailing cash flow basis, the stock currently trades at 2.1X versus its peer group's average of 5.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making SM Energy an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, SM Energy currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SM Energy passes the test. Thus, it seems as though SM Energy shares could have potential in the weeks and months to come.
How Does SM Stack Up to the Competition?
Shares of SM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is APA Corporation (APA - Free Report) . APA has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. APA Corporation beat our consensus estimate by 36.63%, and for the current fiscal year, APA is expected to post earnings of $5.20 per share on revenue of $8.74 billion.
Shares of APA Corporation have gained 11.6% over the past month, and currently trade at a forward P/E of 7.72X and a P/CF of 3.89X.
The Oil and Gas - Exploration and Production - United States industry is in the top 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SM and APA, even beyond their own solid fundamental situation.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
SM Energy Company (SM) Hits Fresh High: Is There Still Room to Run?
A strong stock as of late has been SM Energy (SM - Free Report) . Shares have been marching higher, with the stock up 23.2% over the past month. The stock hit a new 52-week high of $33.92 in the previous session. SM Energy has gained 77.4% since the start of the year compared to the 32% gain for the Zacks Oils-Energy sector and the 31.6% return for the Zacks Oil and Gas - Exploration and Production - United States industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, SM Energy reported EPS of $1.55 versus consensus estimate of $1.29.
For the current fiscal year, SM Energy is expected to post earnings of $7.18 per share on $7.37 in revenues. This represents a 32.47% change in EPS on a 133.58% change in revenues. For the next fiscal year, the company is expected to earn $7.83 per share on $7.47 in revenues. This represents a year-over-year change of 9.15% and 1.33%, respectively.
Valuation Metrics
SM Energy may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
SM Energy has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 4.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.2X. On a trailing cash flow basis, the stock currently trades at 2.1X versus its peer group's average of 5.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making SM Energy an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, SM Energy currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SM Energy passes the test. Thus, it seems as though SM Energy shares could have potential in the weeks and months to come.
How Does SM Stack Up to the Competition?
Shares of SM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is APA Corporation (APA - Free Report) . APA has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. APA Corporation beat our consensus estimate by 36.63%, and for the current fiscal year, APA is expected to post earnings of $5.20 per share on revenue of $8.74 billion.
Shares of APA Corporation have gained 11.6% over the past month, and currently trade at a forward P/E of 7.72X and a P/CF of 3.89X.
The Oil and Gas - Exploration and Production - United States industry is in the top 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SM and APA, even beyond their own solid fundamental situation.