On Mar 19, Zacks Investment Research upgraded independent oil
and gas company
SM Energy Company
) to a Zacks Rank #2 (Buy).
EPL OIL&GAS INC (EPL): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
SM ENERGY CO (SM): Free Stock Analysis Report
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Why the Upgrade?
Operating environment and future growth prospects seem bright for
SM Energy, as earnings estimates for this Denver, Colorado-based
company are on the rise. Over the last 30 days, the Zacks
Consensus Estimate for first quarter of 2013 has increased 35.48%
to 42 cents per share, while that for 2013 went up 15.82% to
$1.83 per share.
The momentum has been strong since SM Energy released its fourth
quarter and full-year 2012 earnings results on Feb 20. Adjusted
earnings per share came in at 45 cents per share, comfortably
beating the Zacks Consensus Estimate of 23 cents on record
Total revenue was $444.3 million in the quarter, showing an
improvement of 17.1% from $379.5 million in the prior-year
quarter. The revenue figure also surpassed the Zacks Consensus
Estimate of $414.0 million.
Apart from delivering positive earnings surprises in two of the
last four quarters with an average beat of 32.70%, the company
also has an impressive long-term expected earnings growth rate of
We expect SM Energy's attractive oil and gas investments,
balanced and diverse portfolio of proved reserves and development
drilling opportunities to create long-term value for
Additionally, SM Energy has meaningful leasehold positions of the
leading US shale plays, including the Bakken, Niobrara,
Haynesville, and Granite Wash. We believe these will provide the
company with many years of profitable drilling inventory.
Other Stocks to Consider
Other stocks worth considering in the energy sector include
EPL Oil & Gas Inc.
Range Resources Corp.
Stone Energy Corporation
). All these firms - sporting a Zacks Rank #1 (Strong Buy) -
offer value and are worth accumulating at current levels.