In the latest trading session, Earthstone Energy (ESTE) closed at $12.32, marking a +1.57% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.28%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.16%.
Prior to today’s trading, shares of the oil and gas company had gained 17.31% over the past month. This has outpaced the Oils-Energy sector’s gain of 9% and the S&P 500’s loss of 5.39% in that time.
Earthstone Energy will be looking to display strength as it nears its next earnings release. On that day, Earthstone Energy is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 277.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $106.3 million, up 189.79% from the year-ago period.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 3.11% higher. Earthstone Energy is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Earthstone Energy is currently trading at a Forward P/E ratio of 3.85. This valuation marks a discount compared to its industry’s average Forward P/E of 5.48.
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 78, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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