Back to top

Image: Bigstock

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

Read MoreHide Full Article

Hess (HES - Free Report) closed the most recent trading day at $132.47, moving -0.4% from the previous trading session. This change lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.

Heading into today, shares of the oil and gas producer had lost 3.53% over the past month, lagging the Oils-Energy sector's loss of 2.71% and the S&P 500's gain of 1.72% in that time.

Investors will be hoping for strength from Hess as it approaches its next earnings release. The company is expected to report EPS of $1.30, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.47 billion, up 4.21% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.37 per share and revenue of $10.98 billion, which would represent changes of -10.41% and -5.12%, respectively, from the prior year.

Any recent changes to analyst estimates for Hess should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 15.28% lower. Hess is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Hess has a Forward P/E ratio of 20.89 right now. Its industry sports an average Forward P/E of 10.97, so we one might conclude that Hess is trading at a premium comparatively.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hess Corporation (HES) - free report >>

Published in