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Just Energy (JE) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Just Energy (JE) closed at $1.65 in the latest trading session, marking a +1.85% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 0.23%.

Heading into today, shares of the natural gas and electricity retailer had lost 34.15% over the past month, lagging the Utilities sector's gain of 3.19% and the S&P 500's gain of 3.81% in that time.

JE will be looking to display strength as it nears its next earnings release. In that report, analysts expect JE to post earnings of -$0.01 per share. This would mark a year-over-year decline of 106.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $564.35 million, down 22.85% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.05 per share and revenue of $2.24 billion, which would represent changes of -975% and -23.15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for JE. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. JE is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, JE currently has a Forward P/E ratio of 11.57. Its industry sports an average Forward P/E of 21.14, so we one might conclude that JE is trading at a discount comparatively.

The Utility - Gas Distribution industry is part of the Utilities sector. This group has a Zacks Industry Rank of 98, putting 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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