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Earthstone Energy (ESTE) Gains As Market Dips: What You Should Know

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Earthstone Energy closed at $13.27 in the latest trading session, marking a +0.76% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.19%, and the tech-heavy Nasdaq lost 0.34%.

Prior to today's trading, shares of the oil and gas company had lost 1.27% over the past month. This has lagged the Oils-Energy sector's gain of 8.16% and the S&P 500's gain of 6.02% in that time.

Earthstone Energy will be looking to display strength as it nears its next earnings release. On that day, Earthstone Energy is projected to report earnings of $0.54 per share, which would represent year-over-year growth of 217.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $158.17 million, up 109.3% from the year-ago period.

ESTE's full-year Zacks Consensus Estimates are calling for earnings of $2.80 per share and revenue of $1.08 billion. These results would represent year-over-year changes of +124% and +157.55%, respectively.

Any recent changes to analyst estimates for Earthstone Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.18% higher. Earthstone Energy is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Earthstone Energy is currently trading at a Forward P/E ratio of 4.7. This valuation marks a discount compared to its industry's average Forward P/E of 6.53.

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 52, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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