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

Zacks Equity Research

Antero Resources (AR) closed the most recent trading day at $7.90, moving -1.74% from the previous trading session. This change lagged the S&P 500's 0.88% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, added 1.32%.

Prior to today's trading, shares of the oil and natural gas producer had lost 4.17% over the past month. This has lagged the Oils-Energy sector's gain of 2.46% and the S&P 500's gain of 3.96% in that time.

AR will be looking to display strength as it nears its next earnings release, which is expected to be May 1, 2019. The company is expected to report EPS of $0.46, up 4.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.17 billion, up 13.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.81 per share and revenue of $4.55 billion. These totals would mark changes of -19% and +5.1%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for AR. Recent revisions tend to reflect the latest near-term business trends. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 38.77% higher. AR is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AR has a Forward P/E ratio of 9.99 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.62.

Also, we should mention that AR has a PEG ratio of 0.5. 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. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 1.06 at yesterday's closing price.

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 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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