SM Energy (SM) closed at $27.59 in the latest trading session, marking a +1.62% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.55% for the day. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.7%.

The independent oil and gas company's shares have seen a decrease of 27.1% over the last month, not keeping up with the Oils-Energy sector's loss of 6.33% and the S&P 500's loss of 5.56%.

Market participants will be closely following the financial results of SM Energy in its upcoming release. In that report, analysts expect SM Energy to post earnings of $1.87 per share. This would mark year-over-year growth of 32.62%. Simultaneously, our latest consensus estimate expects the revenue to be $854.53 million, showing a 52.63% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.60 per share and a revenue of $3.49 billion, signifying shifts of +11.76% and +29.89%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SM Energy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.18% lower within the past month. SM Energy is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, SM Energy is currently being traded at a Forward P/E ratio of 3.57. This represents a discount compared to its industry's average Forward P/E of 7.69.

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 28, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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