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Southwestern Energy (SWN) Stock Sinks As Market Gains: What You Should Know

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Southwestern Energy (SWN - Free Report) closed the most recent trading day at $6.67, moving -1.33% from the previous trading session. This change lagged the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.

Coming into today, shares of the independent oil and gas company had lost 1.46% in the past month. In that same time, the Oils-Energy sector gained 0.86%, while the S&P 500 gained 7.91%.

Southwestern Energy will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2022. In that report, analysts expect Southwestern Energy to post earnings of $0.35 per share. This would mark year-over-year growth of 84.21%. Meanwhile, our latest consensus estimate is calling for revenue of $1.8 billion, up 70.99% from the prior-year quarter.

SWN's full-year Zacks Consensus Estimates are calling for earnings of $1.56 per share and revenue of $8.3 billion. These results would represent year-over-year changes of +48.57% and +24.55%, respectively.

Any recent changes to analyst estimates for Southwestern 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.97% higher. Southwestern Energy is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Southwestern Energy is currently trading at a Forward P/E ratio of 4.34. Its industry sports an average Forward P/E of 4.46, so we one might conclude that Southwestern 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 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 SWN in the coming trading sessions, be sure to utilize Zacks.com.


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