Chesapeake Energy (CHK) closed at $72.07 in the latest trading session, marking a -1.61% move from the prior day. This move lagged the S&P 500's daily loss of 1.1%. Elsewhere, the Dow lost 1.19%, while the tech-heavy Nasdaq lost 3.27%.
Coming into today, shares of the oil and gas company had lost 12.7% in the past month. In that same time, the Oils-Energy sector lost 10.83%, while the S&P 500 lost 3.02%.
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 $1.88 per share. This would mark a year-over-year decline of 39.16%. Our most recent consensus estimate is calling for quarterly revenue of $1.29 billion, up 38.23% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.43 per share and revenue of $4.12 billion. These totals would mark changes of -62.66% and -64.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Chesapeake Energy. These revisions help to show the ever-changing nature of near-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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 29.65% lower within the past month. 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 11.39. This represents a premium compared to its industry's average Forward P/E of 5.44.
We can also see that CHK currently has a PEG ratio of 0.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.29 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 227, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report