Earthstone Energy (ESTE) closed at $12.41 in the latest trading session, marking a -0.72% move from the prior day. This change was narrower than the S&P 500’s 2.12% loss on the day. Elsewhere, the Dow lost 1.78%, while the tech-heavy Nasdaq added 0.45%.
Prior to today’s trading, shares of the oil and gas company had lost 7.34% over the past month. This has lagged the Oils-Energy sector’s gain of 3.82% and the S&P 500’s loss of 3.91% 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 $0.37 per share, which would represent year-over-year growth of 311.11%. Our most recent consensus estimate is calling for quarterly revenue of $106.95 million, up 191.58% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Earthstone Energy. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection has moved 4.29% lower. Earthstone Energy is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Earthstone Energy is holding a Forward P/E ratio of 4.15. Its industry sports an average Forward P/E of 6.03, so we one might conclude that Earthstone 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 group has a Zacks Industry Rank of 57, putting it in the top 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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