Why SM Energy (SM) Outpaced the Stock Market Today

Company Performance - SM Energy closed at $27.59, reflecting a +1.62% increase from the previous day, outperforming the S&P 500's gain of 0.55% [1] - Over the last month, SM Energy's shares have decreased by 27.1%, which is significantly worse than the Oils-Energy sector's loss of 6.33% and the S&P 500's loss of 5.56% [1] Upcoming Financial Results - Analysts expect SM Energy to report earnings of$ 1.87 per share, indicating a year-over-year growth of 32.62% [2] - Revenue is anticipated to be $854.53 million, representing a 52.63% increase compared to the same quarter last year [2] Annual Estimates - For the annual period, earnings are projected at$ 7.60 per share and revenue at $3.49 billion, reflecting increases of +11.76% and +29.89% respectively from the previous year [3] - Recent revisions to analyst forecasts for SM Energy are crucial as they indicate changing business trends, with positive revisions suggesting analyst optimism [3] Valuation Metrics - SM Energy is currently trading at a Forward P/E ratio of 3.57, which is a discount compared to the industry average Forward P/E of 7.69 [6] - The Oil and Gas - Exploration and Production - United States industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 28, placing it in the top 12% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks delivering an average annual return of +25% since 1988 [5] - Currently, SM Energy holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 6.18% in the past month [5]