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Callon Petroleum (CPE) Gains But Lags Market: What You Should Know

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Callon Petroleum (CPE - Free Report) closed at $2.96 in the latest trading session, marking a +0.68% move from the prior day. This change lagged the S&P 500's 1.5% gain on the day. Meanwhile, the Dow gained 1.44%, and the Nasdaq, a tech-heavy index, added 2.1%.

Heading into today, shares of the independent oil and gas company had lost 39.75% over the past month, lagging the Oils-Energy sector's loss of 11.69% and the S&P 500's gain of 0.54% in that time.

Wall Street will be looking for positivity from CPE as it approaches its next earnings report date. The company is expected to report EPS of $0.16, down 5.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $173.10 million, up 6.92% from the year-ago period.

Investors might also notice recent changes to analyst estimates for CPE. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.95% higher. CPE is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note CPE's current valuation metrics, including its Forward P/E ratio of 2.68. Its industry sports an average Forward P/E of 8.89, so we one might conclude that CPE is trading at a discount comparatively.

Also, we should mention that CPE has a PEG ratio of 0.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CPE's industry had an average PEG ratio of 0.7 as of yesterday's close.

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 90, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on

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