Vaalco Energy (EGY) closed at $5.28 in the latest trading session, marking a +1.15% move from the prior day. This change lagged the S&P 500’s 2.76% gain on the day. At the same time, the Dow added 2.43%, and the tech-heavy Nasdaq gained 0.13%.
Prior to today’s trading, shares of the oil and natural gas explorer had lost 29.84% over the past month. This has lagged the Oils-Energy sector’s loss of 2.37% and the S&P 500’s gain of 4.44% in that time.
Investors will be hoping for strength from Vaalco Energy as it approaches its next earnings release. On that day, Vaalco Energy is projected to report earnings of $0.80 per share, which would represent year-over-year growth of 471.43%. Our most recent consensus estimate is calling for quarterly revenue of $97.64 million, up 107.66% from the year-ago period.
EGY’s full-year Zacks Consensus Estimates are calling for earnings of $2.96 per share and revenue of $394.03 million. These results would represent year-over-year changes of +116.06% and +97.93%, respectively.
Any recent changes to analyst estimates for Vaalco Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Vaalco Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Vaalco Energy has a Forward P/E ratio of 1.76 right now. For comparison, its industry has an average Forward P/E of 2.82, which means Vaalco Energy is trading at a discount to the group.
The Oil and Gas – Exploration and Production – International industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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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