In the latest trading session, Chesapeake Energy (CHK) closed at $74.98, marking a -0.17% move from the previous day. This change lagged the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Coming into today, shares of the oil and gas company had lost 7.66% in the past month. In that same time, the Oils-Energy sector lost 2.71%, while the S&P 500 gained 1.72%.
Wall Street will be looking for positivity from Chesapeake Energy as it approaches its next earnings report date. In that report, analysts expect Chesapeake Energy to post earnings of $1.58 per share. This would mark a year-over-year decline of 48.87%. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 27.59% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.53 per share and revenue of $4.27 billion. These totals would mark changes of -67.89% and -63.67%, respectively, from last year.
Any recent changes to analyst estimates for Chesapeake Energy should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 37.71% lower. Chesapeake Energy is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Chesapeake Energy is currently trading at a Forward P/E ratio of 13.59. This represents a premium compared to its industry's average Forward P/E of 6.27.
It is also worth noting that CHK currently has a PEG ratio of 0.57. 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 0.33 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 231, which puts it in the bottom 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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