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

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SM Energy (SM - Free Report) closed at $42.65 in the latest trading session, marking a -0.07% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.06%.

Shares of the independent oil and gas company witnessed a gain of 3.49% over the previous month, beating the performance of the Oils-Energy sector with its loss of 11.11% and the S&P 500's loss of 2.7%.

The investment community will be closely monitoring the performance of SM Energy in its forthcoming earnings report. On that day, SM Energy is projected to report earnings of $1.91 per share, which would represent year-over-year growth of 22.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $862.06 million, up 41.62% from the year-ago period.

Any recent changes to analyst estimates for SM Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. SM Energy is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, SM Energy is presently being traded at a Forward P/E ratio of 5.91. This represents a discount compared to its industry's average Forward P/E of 9.93.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 39% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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