SM Energy (SM) Stock Sinks As Market Gains: Here's Why

SM Energy (SM) closed the most recent trading day at $39.68, moving -0.03% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.92%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 2.03%.

Shares of the independent oil and gas company witnessed a gain of 3.17% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 5.72% and outperforming the S&P 500's gain of 0.81%.

Investors will be eagerly watching for the performance of SM Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.93, reflecting a 23.72% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $868.32 million, up 42.64% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for SM Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 12.09% increase. SM Energy is holding a Zacks Rank of #1 (Strong Buy) right now.

From a valuation perspective, SM Energy is currently exchanging hands at a Forward P/E ratio of 4.9. Its industry sports an average Forward P/E of 9.3, so one might conclude that SM Energy is trading at a discount comparatively.

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 50, which puts it in the top 20% of all 250+ industries.

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.

To follow SM in the coming trading sessions, be sure to utilize Zacks.com.