Earthstone Energy (ESTE) closed the most recent trading day at $13.57, moving -0.59% from the previous trading session. This change lagged the S&P 500’s daily gain of 1.06%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the oil and gas company had lost 30.36% over the past month, lagging the Oils-Energy sector’s loss of 14.41% and the S&P 500’s loss of 8.3% in that time.
Investors will be hoping for strength from Earthstone Energy as it approaches its next earnings release. In that report, analysts expect Earthstone Energy to post earnings of $0.56 per share. This would mark year-over-year growth of 115.38%. Meanwhile, our latest consensus estimate is calling for revenue of $326.77 million, up 264.41% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.61 per share and revenue of $1.3 billion. These totals would mark changes of +268.8% and +209.38%, respectively, from last year.
Investors should also note any 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 11.35% higher. Earthstone Energy is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Earthstone Energy’s current valuation metrics, including its Forward P/E ratio of 2.96. For comparison, its industry has an average Forward P/E of 4.14, 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 27, putting it in the top 11% 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.
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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