In the latest trading session, Chesapeake Energy (CHK) closed at $2.73, marking a -1.09% move from the previous day. This change lagged the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.42%.
Heading into today, shares of the natural gas company had gained 7.39% over the past month, outpacing the Oils-Energy sector's gain of 0.31% and the S&P 500's loss of 1.64% in that time.
Wall Street will be looking for positivity from CHK as it approaches its next earnings report date. This is expected to be February 28, 2019. In that report, analysts expect CHK to post earnings of $0.15 per share. This would mark a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, down 18.19% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for CHK. 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, 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 6.56% lower within the past month. CHK is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, CHK is holding a Forward P/E ratio of 3.52. This represents a discount compared to its industry's average Forward P/E of 8.82.
Also, we should mention that CHK has a PEG ratio of 0.47. 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 0.53 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 235, 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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