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Chesapeake Energy (CHK) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Chesapeake Energy (CHK) closed at $1.65 in the latest trading session, marking a -1.79% move from the prior day. This change lagged the S&P 500's 0.74% gain on the day. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 1.11%.

Coming into today, shares of the natural gas company had lost 10.64% in the past month. In that same time, the Oils-Energy sector lost 1.9%, while the S&P 500 gained 3.18%.

CHK will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2019. In that report, analysts expect CHK to post earnings of -$0.06 per share. This would mark a year-over-year decline of 140%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.19 billion, up 20.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.18 per share and revenue of $4.81 billion. These totals would mark changes of -120% and -6.65%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CHK. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 220% lower. CHK currently has a Zacks Rank of #4 (Sell).

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 215, which puts it in the bottom 17% 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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