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Chesapeake Energy (CHK) Gains But Lags Market: What You Should Know

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Chesapeake Energy (CHK) closed the most recent trading day at $92.89, moving +0.54% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq lost 0.01%.

Heading into today, shares of the oil and gas company had gained 6.18% over the past month, outpacing the Oils-Energy sector's gain of 2.47% and the S&P 500's gain of 3.2% in that time.

Wall Street will be looking for positivity from Chesapeake Energy as it approaches its next earnings report date. This is expected to be August 2, 2022. On that day, Chesapeake Energy is projected to report earnings of $3.74 per share, which would represent year-over-year growth of 128.05%. Our most recent consensus estimate is calling for quarterly revenue of $1.71 billion, up 147.36% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Chesapeake Energy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 4.83% higher within the past month. Chesapeake Energy currently has a Zacks Rank of #2 (Buy).

Investors should also note Chesapeake Energy's current valuation metrics, including its Forward P/E ratio of 6.52. This represents a premium compared to its industry's average Forward P/E of 4.98.

It is also worth noting that CHK currently has a PEG ratio of 1.04. 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. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.23 as of yesterday's close.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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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