Chesapeake Energy (CHK) Dips More Than Broader Markets: What You Should Know

Chesapeake Energy (CHK) closed at $67.77 in the latest trading session, marking a -2% move from the prior day. This move lagged the S&P 500’s daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the oil and gas company had lost 3.31% in the past month. In that same time, the Oils-Energy sector gained 8.31%, while the S&P 500 lost 6.25%.

Wall Street will be looking for positivity from Chesapeake Energy as it approaches its next earnings report date. This is expected to be February 23, 2022. In that report, analysts expect Chesapeake Energy to post earnings of $2.43 per share. This would mark year-over-year growth of 105.71%. Meanwhile, our latest consensus estimate is calling for revenue of $1.07 billion, down 15.02% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Chesapeake 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.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 16.76% higher. Chesapeake Energy is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Chesapeake Energy is holding a Forward P/E ratio of 6.59. This represents a discount compared to its industry’s average Forward P/E of 18.52.

The Alternative Energy – Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


Just Released: Zacks Top 10 Stocks for 2022

In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?

Last year’s 2021

Zacks Top 10 Stocks

portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys


Access Zacks Top 10 Stocks for 2022 today >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report


To read this article on Zacks.com click here.