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MARKETS LIVE BLOG:

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Chesapeake Energy (CHK) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

Chesapeake Energy (CHK) closed at $82.79 in the latest trading session, marking a -0.91% move from the prior day. This change lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the oil and gas company had lost 14.63% over the past month. This has lagged the Oils-Energy sector's loss of 4.13% and the S&P 500's loss of 3.32% in that time.

Chesapeake Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Chesapeake Energy to post earnings of $3.15 per share. This would mark year-over-year growth of 92.07%. Meanwhile, our latest consensus estimate is calling for revenue of $1.57 billion, up 126.66% from the prior-year quarter.

Any recent changes to analyst estimates for Chesapeake Energy should also be noted by investors. 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.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 4.99% lower within the past month. Chesapeake Energy is currently a Zacks Rank #3 (Hold).

Digging into valuation, Chesapeake Energy currently has a Forward P/E ratio of 6.08. This valuation marks a premium compared to its industry's average Forward P/E of 4.7.

We can also see that CHK currently has a PEG ratio of 0.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CHK's industry had an average PEG ratio of 0.23 as of yesterday's close.

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 47, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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