SM Energy(US:SM) ZACKS·2025-10-06 23:01Core Viewpoint - SM Energy's stock performance has lagged behind the broader market, with a recent decline and expectations of lower earnings despite projected revenue growth [1][2][3]. Company Performance - SM Energy closed at $25.38, reflecting a -1.82% change from the previous day, underperforming the S&P 500's gain of 0.37% [1]. - The stock has decreased by 3.97% over the past month, contrasting with the Oils-Energy sector's increase of 2.31% and the S&P 500's rise of 4.26% [1]. Earnings Expectations - Analysts anticipate SM Energy will report earnings of $1.37 per share, representing a year-over-year decline of 15.43% [2]. - The Zacks Consensus Estimate for revenue is projected at $850.96 million, which is a 32.22% increase from the previous year [2]. Full Year Projections - For the full year, earnings are expected to be $5.82 per share, down 14.41% from last year, while revenue is projected at $3.33 billion, reflecting a 23.89% increase [3]. Analyst Estimates - Recent changes in analyst estimates indicate a shifting business landscape, with positive revisions suggesting confidence in SM Energy's performance [4]. - The Zacks Rank system, which assesses these estimate changes, currently rates SM Energy as a 5 (Strong Sell) [6]. Valuation Metrics - SM Energy is trading at a Forward P/E ratio of 4.44, significantly lower than the industry average of 11.06, indicating a potential discount [7]. - The Oil and Gas - Exploration and Production - United States industry, to which SM Energy belongs, ranks 214 out of over 250 industries, placing it in the bottom 14% [7][8].