Weakness Seen in Noble Energy (NBL): Stock Falls 6.2% - Tale of the Tape

Noble Energy, Inc. (NBL) saw a big move last session, as the company’s shares fell by over 6% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This continues the recent downtrend for NBL, as the stock is now down nearly 9% in the past one-month time frame.

On May 11, the company announced that it has entered into an agreement with Rosetta Resources to acquire the latter. The transaction is valued at $2.1 billion. The news could have prompted the share price decline.

This slump shouldn’t be too much of a surprise to investors, as the independent energy company has seen 8 negative revisions in the past few weeks and its current year earnings consensus has moved lower over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.

NBL currently has a Zacks Rank #3 (Hold).

A better-ranked stock in the same sector is Sanchez Energy Corporation (SN), holding a Zacks Rank #2 (Buy).

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