Evolution Petroleum (EPM) Stock Drops Despite Market Gains: Important Facts to Note
Evolution Petroleum (EPM) closed the latest trading day at $5.88, indicating a -1.01% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.14%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.16%.
Prior to today's trading, shares of the oil and gas company had gained 1.71% over the past month. This has lagged the Oils-Energy sector's gain of 2.24% and the S&P 500's gain of 4.89% in that time.
The investment community will be paying close attention to the earnings performance of Evolution Petroleum in its upcoming release. The company's earnings per share (EPS) are projected to be $0.12, reflecting a 58.62% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $23.54 million, showing a 30.12% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.42 per share and revenue of $92.65 million, indicating changes of -58.42% and -27.91%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Evolution Petroleum. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.49% lower within the past month. Evolution Petroleum is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Evolution Petroleum is currently being traded at a Forward P/E ratio of 14.31. This valuation marks a premium compared to its industry's average Forward P/E of 8.93.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 205, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
