In the latest trading session, Earthstone Energy (ESTE) closed at $13.93, marking a +0.8% move from the previous day. This change outpaced the S&P 500's 0.66% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 0.05%.
Prior to today's trading, shares of the oil and gas company had lost 0.5% over the past month. This has lagged the Oils-Energy sector's gain of 4.6% and was narrower than the S&P 500's loss of 3.79% in that time.
Investors will be hoping for strength from Earthstone Energy as it approaches its next earnings release. In that report, analysts expect Earthstone Energy to post earnings of $1.73 per share. This would mark year-over-year growth of 394.29%. Meanwhile, our latest consensus estimate is calling for revenue of $397.82 million, up 260.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.11 per share and revenue of $1.44 billion, which would represent changes of +308.8% and +243.19%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Earthstone Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 6.79% higher. Earthstone Energy is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Earthstone Energy has a Forward P/E ratio of 2.7 right now. Its industry sports an average Forward P/E of 4.98, so we one might conclude that Earthstone Energy is trading at a discount comparatively.
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 66, which puts it in the top 27% 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.
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