SM Energy (SM) Falls More Steeply Than Broader Market: What Investors Need to Know

Core Viewpoint - SM Energy has shown strong performance in the stock market, with a notable increase in share price over the past month, outperforming both the Oils-Energy sector and the S&P 500 index [1][2]. Group 1: Stock Performance - SM Energy closed at $44.12, reflecting a -1.28% change from the previous day, which is less than the S&P 500's daily loss of 0.21% [1] - Over the past month, SM Energy shares have gained 20.3%, while the Oils-Energy sector has lost 6.25% and the S&P 500 has lost 1.56% [1] Group 2: Earnings Projections - The upcoming earnings disclosure for SM Energy is anticipated, with projected earnings per share (EPS) of $1.92, indicating a 23.08% increase from the same quarter last year [2] - Revenue is forecasted to be $866.57 million, reflecting a 42.36% growth compared to the corresponding quarter of the prior year [2] Group 3: Analyst Estimates - Recent changes to analyst estimates for SM Energy suggest positive revisions, indicating analysts' confidence in the company's business performance and profit potential [3] - The Zacks Rank system, which incorporates these estimate changes, currently ranks SM Energy as 1 (Strong Buy) [5] Group 4: Valuation Metrics - SM Energy has a Forward P/E ratio of 5.87, which is lower than the industry average Forward P/E of 10.22, suggesting that SM Energy is trading at a discount [6] - The Oil and Gas - Exploration and Production - United States industry, to which SM Energy belongs, has a Zacks Industry Rank of 145, placing it in the bottom 43% of over 250 industries [6] Group 5: Zacks Industry Rank - The Zacks Industry Rank assesses the strength of specific industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]