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Antero Resources (AR) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Antero Resources (AR) closed at $8.69 in the latest trading session, marking a +1.16% move from the prior day. This move outpaced the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.

Heading into today, shares of the oil and natural gas producer had lost 1.15% over the past month, lagging the Oils-Energy sector's loss of 0.03% and the S&P 500's gain of 3.08% in that time.

Wall Street will be looking for positivity from AR as it approaches its next earnings report date. This is expected to be May 1, 2019. In that report, analysts expect AR to post earnings of $0.56 per share. This would mark year-over-year growth of 27.27%. Our most recent consensus estimate is calling for quarterly revenue of $1.18 billion, up 14.36% from the year-ago period.

AR's full-year Zacks Consensus Estimates are calling for earnings of $0.79 per share and revenue of $4.54 billion. These results would represent year-over-year changes of -21% and +4.88%, respectively.

Investors should also note any recent changes to analyst estimates for AR. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 43.55% higher within the past month. AR is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that AR has a Forward P/E ratio of 10.9 right now. For comparison, its industry has an average Forward P/E of 15.19, which means AR is trading at a discount to the group.

We can also see that AR currently has a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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