Chesapeake Energy (CHK) Gains But Lags Market: What You Should Know
Chesapeake Energy (CHK) closed at $94.58 in the latest trading session, marking a +1.01% move from the prior day. This move lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Prior to today's trading, shares of the oil and gas company had lost 9.54% over the past month. This has lagged the Oils-Energy sector's loss of 3.11% and the S&P 500's loss of 4.4% in that time.
Investors will be hoping for strength from Chesapeake Energy as it approaches its next earnings release. On that day, Chesapeake Energy is projected to report earnings of $3.61 per share, which would represent year-over-year growth of 51.05%. Meanwhile, our latest consensus estimate is calling for revenue of $1.57 billion, down 49.21% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Chesapeake Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.18% lower. Chesapeake Energy currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Chesapeake Energy has a Forward P/E ratio of 5.67 right now. This represents a premium compared to its industry's average Forward P/E of 5.
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 141, which puts it in the bottom 45% 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.
To follow CHK in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report
To read this article on Zacks.com click here.