SM Energy(US:SM) ZACKS·2025-10-13 22:51Core Insights - SM Energy's stock closed at $23.08, reflecting a 2.1% increase, outperforming the S&P 500's gain of 1.56% [1] - The company has experienced a significant decline of 15.48% prior to the recent trading day, underperforming compared to the Oils-Energy sector and the S&P 500 [1] Earnings Expectations - Analysts anticipate SM Energy will report an EPS of $1.38, representing a decrease of 14.81% year-over-year [2] - Revenue is expected to reach $841.04 million, indicating a growth of 30.67% compared to the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $5.78 per share, down 15% from the previous year, while revenue is expected to be $3.32 billion, reflecting a growth of 23.23% [3] - Recent adjustments to analyst estimates are crucial as they indicate short-term business trends and analyst sentiment [3] Stock Performance and Valuation - The Zacks Rank system currently rates SM Energy as 5 (Strong Sell), with a 0.65% decrease in the EPS estimate over the last 30 days [5] - SM Energy's Forward P/E ratio stands at 3.91, significantly lower than the industry average of 9.34, indicating a valuation discount [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is ranked 226 out of over 250 industries, placing it in the bottom 9% [6] - The Zacks Industry Rank suggests that higher-rated industries outperform lower-rated ones by a factor of 2 to 1 [7]