SM Energy (SM) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - SM Energy (SM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook for its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2024, SM Energy is expected to earn $6.95 per share, reflecting an 18% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for SM Energy has risen by 16.1% [8]. Investment Implications - The upgrade to Zacks Rank 1 positions SM Energy in the top 5% of Zacks-covered stocks, suggesting potential for stock price appreciation in the near term [10]. - Rising earnings estimates and the corresponding rating upgrade indicate an improvement in SM Energy's underlying business, which could lead to increased investor interest and stock price growth [5][9].