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Vaalco Energy (EGY) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Vaalco Energy (EGY - Free Report) closed at $4.09, marking a +1.74% move from the previous day. This move outpaced the S&P 500's daily gain of 1.22%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 4.63%.

Coming into today, shares of the oil and natural gas explorer had gained 4.69% in the past month. In that same time, the Oils-Energy sector gained 2.49%, while the S&P 500 gained 6.22%.

Wall Street will be looking for positivity from Vaalco Energy as it approaches its next earnings report date. In that report, analysts expect Vaalco Energy to post earnings of $0.24 per share. This would mark a year-over-year decline of 53.85%. Meanwhile, our latest consensus estimate is calling for revenue of $111.74 million, up 0.68% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.88 per share and revenue of $458.63 million, which would represent changes of -40.94% and +29.44%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Vaalco Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Vaalco Energy is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Vaalco Energy has a Forward P/E ratio of 4.57 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 4.57.

The Oil and Gas - Exploration and Production - International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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