In the latest trading session, Chesapeake Energy (CHK) closed at $2.84, marking a -0.35% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.25%.
Coming into today, shares of the natural gas company had gained 33.8% in the past month. In that same time, the Oils-Energy sector gained 11.26%, while the S&P 500 gained 7.92%.
CHK will be looking to display strength as it nears its next earnings release, which is expected to be February 27, 2019. On that day, CHK is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 43.33%. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, down 17.05% from the year-ago period.
Investors might also notice recent changes to analyst estimates for CHK. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. The Zacks Consensus EPS estimate has moved 23.62% lower within the past month. CHK is currently a Zacks Rank #3 (Hold).
Digging into valuation, CHK currently has a Forward P/E ratio of 4.59. For comparison, its industry has an average Forward P/E of 12.65, which means CHK is trading at a discount to the group.
We can also see that CHK currently has a PEG ratio of 0.69. 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. CHK's industry had an average PEG ratio of 0.91 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 233, putting it in the bottom 9% 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.
To follow CHK in the coming trading sessions, be sure to utilize Zacks.com.