Chesapeake Energy (CHK) Dips More Than Broader Markets: What You Should Know
Chesapeake Energy (CHK) closed at $86.24 in the latest trading session, marking a -1.6% move from the prior day. This move lagged the S&P 500's daily loss of 1.3%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 5.51%.
Heading into today, shares of the oil and gas company had lost 7.13% over the past month, lagging the Oils-Energy sector's gain of 2.85% and the S&P 500's gain of 6.41% in that time.
Wall Street will be looking for positivity from Chesapeake Energy as it approaches its next earnings report date. On that day, Chesapeake Energy is projected to report earnings of $2.96 per share, which would represent year-over-year growth of 23.85%. Meanwhile, our latest consensus estimate is calling for revenue of $1.52 billion, down 50.79% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Chesapeake Energy. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 53.14% lower. Chesapeake Energy currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Chesapeake Energy is currently trading at a Forward P/E ratio of 7.94. Its industry sports an average Forward P/E of 6.28, so we one might conclude that Chesapeake Energy 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 248, which puts it in the bottom 2% 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.
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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