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

Zacks Equity Research

In the latest trading session, Chesapeake Energy (CHK) closed at $0.53, marking a -1.82% move from the previous day. This move lagged the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.26%.

Coming into today, shares of the natural gas company had lost 34.78% in the past month. In that same time, the Oils-Energy sector lost 5.93%, while the S&P 500 gained 1.18%.

Investors will be hoping for strength from CHK as it approaches its next earnings release, which is expected to be February 26, 2020. In that report, analysts expect CHK to post earnings of -$0.06 per share. This would mark a year-over-year decline of 128.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.22 billion, down 29.65% from the year-ago period.

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. 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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 6.58% lower. CHK currently has a Zacks Rank of #3 (Hold).

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 84, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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