Chesapeake Energy (CHK) closed the most recent trading day at $2.72, making no change from the previous trading session. This change was narrower than the S&P 500's 2.33% loss on the day. Meanwhile, the Dow lost 2.24%, and the Nasdaq, a tech-heavy index, lost 3.05%.
Prior to today's trading, shares of the natural gas company had lost 23.16% over the past month. This has lagged the Oils-Energy sector's loss of 7.26% and the S&P 500's loss of 1.93% in that time.
Investors will be hoping for strength from CHK as it approaches its next earnings release, which is expected to be February 28, 2019. On that day, CHK is projected to report earnings of $0.15 per share, which would represent a year-over-year decline of 50%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, down 18.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.85 per share and revenue of $4.58 billion, which would represent changes of +3.66% and -8.09%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CHK. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.91% lower. CHK is currently a Zacks Rank #3 (Hold).
Digging into valuation, CHK currently has a Forward P/E ratio of 3.2. This valuation marks a discount compared to its industry's average Forward P/E of 13.9.
Meanwhile, CHK's PEG ratio is currently 0.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.76 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 106, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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