Approach Resources (AREX) closed at $0.13 in the latest trading session, marking a -1.88% move from the prior day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.13%.
Prior to today's trading, shares of the oil and gas company had lost 34.39% over the past month. This has lagged the Oils-Energy sector's gain of 7.67% and the S&P 500's gain of 3.59% in that time.
Investors will be hoping for strength from AREX as it approaches its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $20.61 million, down 36.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.40 per share and revenue of $81.66 million, which would represent changes of -53.85% and -28.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AREX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AREX is currently sporting a Zacks Rank of #3 (Hold).
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 165, which puts it in the bottom 36% 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.
To follow AREX in the coming trading sessions, be sure to utilize Zacks.com.
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