Earthstone Energy (ESTE) Gains But Lags Market: What You Should Know

Earthstone Energy (ESTE) closed at $12.88 in the latest trading session, marking a +0.16% move from the prior day. The stock lagged the S&P 500’s daily gain of 0.59%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today’s trading, shares of the oil and gas company had lost 25.49% over the past month. This has lagged the Oils-Energy sector’s gain of 0.29% and the S&P 500’s gain of 7.25% in that time.

Wall Street will be looking for positivity from Earthstone Energy as it approaches its next earnings report date. This is expected to be August 4, 2022. The company is expected to report EPS of $1.10, up 323.08% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $329.27 million, up 267.2% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.54 per share and revenue of $1.3 billion, which would represent changes of +263.2% and +209.97%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Earthstone Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 2.37% higher within the past month. Earthstone Energy currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Earthstone Energy currently has a Forward P/E ratio of 2.83. For comparison, its industry has an average Forward P/E of 4.32, which means Earthstone Energy 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 group has a Zacks Industry Rank of 18, putting it in the top 8% 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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