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Southwestern Energy (SWN) Gains But Lags Market: What You Should Know

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Southwestern Energy closed the most recent trading day at $7.25, moving +0.55% from the previous trading session. This change lagged the S&P 500's 0.69% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the independent oil and gas company had lost 3.09% in the past month. In that same time, the Oils-Energy sector lost 0.21%, while the S&P 500 lost 9.94%.

Wall Street will be looking for positivity from Southwestern Energy as it approaches its next earnings report date. In that report, analysts expect Southwestern Energy to post earnings of $0.34 per share. This would mark year-over-year growth of 41.67%. Meanwhile, our latest consensus estimate is calling for revenue of $1.9 billion, up 18.96% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.45 per share and revenue of $9.33 billion. These totals would mark changes of +38.1% and +39.87%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Southwestern Energy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. The Zacks Consensus EPS estimate has moved 3.78% higher within the past month. Southwestern Energy is currently a Zacks Rank #3 (Hold).

Investors should also note Southwestern Energy's current valuation metrics, including its Forward P/E ratio of 4.97. This valuation marks a discount compared to its industry's average Forward P/E of 5.11.

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 50, putting it in the top 20% 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 SWN in the coming trading sessions, be sure to utilize Zacks.com.

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