Chesapeake Energy (CHK) closed the most recent trading day at $68.43, moving +1.94% from the previous trading session. The stock outpaced the S&P 500’s daily loss of 0.15%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the oil and gas company had gained 1.77% in the past month. In that same time, the Oils-Energy sector gained 10.7%, while the S&P 500 lost 7.66%.
Chesapeake Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.42, up 105.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.07 billion, down 15.02% from the year-ago period.
Any recent changes to analyst estimates for Chesapeake Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 9.83% lower. Chesapeake Energy is currently a Zacks Rank #3 (Hold).
Investors should also note Chesapeake Energy’s current valuation metrics, including its Forward P/E ratio of 7.14. This valuation marks a discount compared to its industry’s average Forward P/E of 17.9.
The Alternative Energy – Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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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