Back to top

Image: Bigstock

SM Energy (SM) Falls More Steeply Than Broader Market: What Investors Need to Know

Read MoreHide Full Article

In the latest trading session, SM Energy (SM - Free Report) closed at $44.12, marking a -1.28% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.89%.

Prior to today's trading, shares of the independent oil and gas company had gained 20.3% over the past month. This has outpaced the Oils-Energy sector's loss of 6.25% and the S&P 500's loss of 1.56% in that time.

Investors will be eagerly watching for the performance of SM Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.92, reflecting a 23.08% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $866.57 million, indicating a 42.36% growth compared to the corresponding quarter of the prior year.

Investors might also notice recent changes to analyst estimates for SM Energy. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 5.47% rise in the Zacks Consensus EPS estimate. As of now, SM Energy holds a Zacks Rank of #1 (Strong Buy).

Investors should also note SM Energy's current valuation metrics, including its Forward P/E ratio of 5.87. Its industry sports an average Forward P/E of 10.22, so one might conclude that SM Energy is trading at a discount comparatively.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


SM Energy Company (SM) - free report >>

Published in