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Southwestern Energy (SWN) Outpaces Stock Market Gains: What You Should Know

·3 min read

Southwestern Energy (SWN) closed at $7.30 in the latest trading session, marking a +1.81% move from the prior day. This change outpaced the S&P 500's 0.66% gain on the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq lost 0.02%.

Heading into today, shares of the independent oil and gas company had gained 3.46% over the past month, lagging the Oils-Energy sector's gain of 4.6% and outpacing the S&P 500's loss of 3.79% in that time.

Southwestern Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.34, up 41.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.89 billion, up 18.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.44 per share and revenue of $9.3 billion, which would represent changes of +37.14% and +39.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Southwestern Energy. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 2.86% higher within the past month. Southwestern Energy is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Southwestern Energy has a Forward P/E ratio of 4.98 right now. Its industry sports an average Forward P/E of 4.98, so we one might conclude that Southwestern Energy is trading at a no noticeable deviation 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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