Chesapeake Energy (CHK) closed the most recent trading day at $102.08, moving -0.52% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the oil and gas company had gained 2.23% in the past month. In that same time, the Oils-Energy sector lost 2.7%, while the S&P 500 lost 8.68%.
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 $4.68 per share, which would represent year-over-year growth of 96.64%. Meanwhile, our latest consensus estimate is calling for revenue of $1.84 billion, up 106.21% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Chesapeake Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 9.38% higher. Chesapeake Energy currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Chesapeake Energy is currently trading at a Forward P/E ratio of 5.75. For comparison, its industry has an average Forward P/E of 5.01, which means Chesapeake Energy is trading at a premium to the group.
Also, we should mention that CHK has a PEG ratio of 0.92. 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 industry currently had an average PEG ratio of 0.22 as of yesterday's close.
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 42, putting it in the top 17% 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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