SM Energy (SM) Increases Yet Falls Behind Market: What Investors Need to Know

Core Viewpoint - SM Energy's stock performance has lagged behind major indices, with a significant decline over the past month, while upcoming earnings are anticipated to show growth in EPS and revenue compared to the previous year [1][2][3]. Company Performance - SM Energy's stock closed at $23.17, reflecting a +0.78% change from the previous day, which is lower than the S&P 500's gain of 2.03% [1]. - Over the past month, SM Energy shares have decreased by 25.33%, underperforming the Oils-Energy sector's loss of 10.82% and the S&P 500's loss of 5.07% [1]. Earnings Expectations - The company is expected to report earnings on May 1, 2025, with an anticipated EPS of$ 1.57, representing an 11.35% increase year-over-year [2]. - The Zacks Consensus Estimate for revenue is projected at $822.88 million, which is a 46.98% increase from the same quarter last year [2]. Full-Year Estimates - For the full year, the Zacks Consensus Estimates predict earnings of$ 6.07 per share and revenue of $3.37 billion, indicating a year-over-year decline in earnings of -10.74% and an increase in revenue of +25.29% [3]. Analyst Forecast Revisions - Recent revisions to analyst forecasts for SM Energy are crucial as they reflect changes in short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance [4]. Zacks Rank and Valuation - SM Energy currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate having decreased by 14.63% over the last 30 days [6]. - The company is trading at a Forward P/E ratio of 3.79, which is below the industry average Forward P/E of 7.65 [7]. Industry Context - The Oil and Gas - Exploration and Production - United States industry, to which SM Energy belongs, has a Zacks Industry Rank of 197, placing it in the bottom 21% of over 250 industries [7].