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Hess (HES) Gains As Market Dips: What You Should Know

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Hess (HES - Free Report) closed at $127.72 in the latest trading session, marking a +0.68% move from the prior day. This move outpaced the S&P 500's daily loss of 2.91%. At the same time, the Dow lost 2.73%, and the tech-heavy Nasdaq lost 0.25%.

Heading into today, shares of the oil and gas producer had gained 17.04% over the past month, outpacing the Oils-Energy sector's gain of 16.13% and the S&P 500's gain of 0.84% in that time.

Hess will be looking to display strength as it nears its next earnings release. In that report, analysts expect Hess to post earnings of $2.23 per share. This would mark year-over-year growth of 829.17%. Meanwhile, our latest consensus estimate is calling for revenue of $2.75 billion, up 71.86% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.96 per share and revenue of $11.31 billion, which would represent changes of +309.13% and +49.14%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Hess. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.8% lower. Hess is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Hess is currently trading at a Forward P/E ratio of 14.16. For comparison, its industry has an average Forward P/E of 14.09, which means Hess is trading at a premium to the group.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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 HES in the coming trading sessions, be sure to utilize Zacks.com.


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