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SM Energy (SM) Stock Dips While Market Gains: Key Facts

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SM Energy (SM - Free Report) closed the latest trading day at $39.61, indicating a -1.1% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.25%.

Shares of the independent oil and gas company have appreciated by 3.33% over the course of the past month, underperforming the Oils-Energy sector's gain of 5.88% and outperforming the S&P 500's gain of 1.24%.

The investment community will be paying close attention to the earnings performance of SM Energy in its upcoming release. The company is predicted to post an EPS of $1.93, indicating a 23.72% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $868.32 million, reflecting a 42.64% rise from the equivalent quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SM Energy. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.09% higher. Right now, SM Energy possesses a Zacks Rank of #1 (Strong Buy).

In terms of valuation, SM Energy is presently being traded at a Forward P/E ratio of 4.95. This signifies a discount in comparison to the average Forward P/E of 9.39 for its industry.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 23% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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