Chesapeake Energy (CHK) Stock Sinks As Market Gains: What You Should Know

Chesapeake Energy (CHK) closed the most recent trading day at $65.72, moving -1.6% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.84%. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 0.1%.

Heading into today, shares of the oil and gas company had lost 4.86% over the past month, lagging the Oils-Energy sector’s gain of 9.56% and the S&P 500’s loss of 4.03% in that time.

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. The company is expected to report EPS of $2.43, up 105.71% from the prior-year quarter. 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 help to show the ever-changing nature of near-term business trends. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 19.23% higher. Chesapeake Energy is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Chesapeake Energy currently has a Forward P/E ratio of 6.25. This represents a discount compared to its industry’s average Forward P/E of 20.25.

The Alternative Energy – Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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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