Chesapeake Energy (CHK) closed the most recent trading day at $76.72, moving +0.54% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, lost 1.88%.
Heading into today, shares of the oil and gas company had lost 3.61% over the past month, lagging the Oils-Energy sector's loss of 3.35% and the S&P 500's gain of 1.48% in that time.
Chesapeake Energy will be looking to display strength as it nears its next earnings release. On that day, Chesapeake Energy is projected to report earnings of $1.58 per share, which would represent a year-over-year decline of 48.87%. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 27.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.45 per share and revenue of $4.22 billion. These totals would mark changes of -68.35% and -64.04%, respectively, from last year.
Any recent changes to analyst estimates for Chesapeake Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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. The Zacks Consensus EPS estimate has moved 25.93% lower within the past month. Chesapeake Energy is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Chesapeake Energy currently has a Forward P/E ratio of 14.01. This represents a premium compared to its industry's average Forward P/E of 6.66.
Also, we should mention that CHK has a PEG ratio of 0.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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