Earthstone Energy (ESTE) closed at $13.23 in the latest trading session, marking a -0.6% move from the prior day. This move lagged the S&P 500’s daily loss of 0.54%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Coming into today, shares of the oil and gas company had gained 15.04% in the past month. In that same time, the Oils-Energy sector gained 10.99%, while the S&P 500 lost 7.87%.
Earthstone Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.34, up 277.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $106.3 million, up 189.79% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Earthstone Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 3.11% higher. Earthstone Energy currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Earthstone Energy is currently trading at a Forward P/E ratio of 4.23. This represents a discount compared to its industry’s average Forward P/E of 5.6.
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 63, putting it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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