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Evolution Petroleum (EPM) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Evolution Petroleum (EPM - Free Report) closed at $9.24, marking a -1.7% move from the previous day. This move lagged the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 1.59%.

Coming into today, shares of the oil and gas company had gained 5.62% in the past month. In that same time, the Oils-Energy sector gained 1.58%, while the S&P 500 lost 3.13%.

Evolution Petroleum will be looking to display strength as it nears its next earnings release. In that report, analysts expect Evolution Petroleum to post earnings of $0.06 per share. This would mark a year-over-year decline of 86.36%. Meanwhile, our latest consensus estimate is calling for revenue of $21.65 million, down 48.49% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Evolution Petroleum. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant within the past month. Evolution Petroleum currently has a Zacks Rank of #2 (Buy).

Investors should also note Evolution Petroleum's current valuation metrics, including its Forward P/E ratio of 8.7. For comparison, its industry has an average Forward P/E of 9.57, which means Evolution Petroleum is trading at a discount to the group.

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 206, which puts it in the bottom 19% 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.


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