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Eni SpA (E) Outpaces Stock Market Gains: What You Should Know

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Eni SpA (E - Free Report) closed at $30.95 in the latest trading session, marking a +0.88% move from the prior day. This change outpaced the S&P 500's 0.31% gain on the day. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the energy company had gained 5.87% over the past month, lagging the Oils-Energy sector's gain of 11.52% and outpacing the S&P 500's loss of 1.38% in that time.

Investors will be hoping for strength from Eni SpA as it approaches its next earnings release. In that report, analysts expect Eni SpA to post earnings of $1.53 per share. This would mark year-over-year growth of 163.79%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $239.69 billion, which would represent changes of +118.18% and +163%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Eni SpA. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 4.46% higher. Eni SpA is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Eni SpA's current valuation metrics, including its Forward P/E ratio of 4.57. For comparison, its industry has an average Forward P/E of 5.13, which means Eni SpA is trading at a discount to the group.

Also, we should mention that E has a PEG ratio of 0.44. 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. The Oil and Gas - Integrated - International was holding an average PEG ratio of 0.5 at yesterday's closing price.

The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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