Evolution Petroleum (EPM) Stock Sinks As Market Gains: What You Should Know
Evolution Petroleum (EPM) closed at $6.92 in the latest trading session, marking a -0.72% move from the prior day. This move lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.
Coming into today, shares of the oil and gas company had lost 17.12% in the past month. In that same time, the Oils-Energy sector gained 5.29%, while the S&P 500 lost 2.84%.
Investors will be hoping for strength from Evolution Petroleum as it approaches its next earnings release. The company is expected to report EPS of $0.07, down 76.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.63 million, down 45.67% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.53 per share and revenue of $96.55 million. These totals would mark changes of -47.52% and -24.87%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Evolution Petroleum. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 51.39% lower. Evolution Petroleum is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Evolution Petroleum has a Forward P/E ratio of 13.28 right now. Its industry sports an average Forward P/E of 9.74, so we one might conclude that Evolution Petroleum is trading at a premium 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 98, which puts it in the top 39% 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 EPM in the coming trading sessions, be sure to utilize Zacks.com.
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Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
