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SM Energy (SM) Increases Despite Market Slip: Here's What You Need to Know

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SM Energy (SM - Free Report) closed at $42.33 in the latest trading session, marking a +0.45% move from the prior day. This change outpaced the S&P 500's 0.05% loss on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.18%.

Shares of the independent oil and gas company have appreciated by 0.1% over the course of the past month, outperforming the Oils-Energy sector's loss of 9.67% and lagging the S&P 500's gain of 2.76%.

Analysts and investors alike will be keeping a close eye on the performance of SM Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on October 31, 2024. The company is predicted to post an EPS of $1.56, indicating a 9.83% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $664.81 million, showing a 3.73% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.06 per share and a revenue of $2.76 billion, signifying shifts of +19.86% and +16.07%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for SM Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate has moved 0.25% lower. SM Energy is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that SM Energy has a Forward P/E ratio of 5.97 right now. This expresses a discount compared to the average Forward P/E of 10.06 of its industry.

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 237, putting it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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