In the latest trading session, Chesapeake Energy (CHK) closed at $87.64, marking a -0.25% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Prior to today's trading, shares of the oil and gas company had lost 7.11% over the past month. This has lagged the Oils-Energy sector's gain of 4.55% and the S&P 500's gain of 5.73% in that time.
Wall Street will be looking for positivity from Chesapeake Energy as it approaches its next earnings report date. On that day, Chesapeake Energy is projected to report earnings of $2.96 per share, which would represent year-over-year growth of 23.85%. Our most recent consensus estimate is calling for quarterly revenue of $1.52 billion, down 50.79% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Chesapeake Energy. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 53.14% lower. Chesapeake Energy is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, Chesapeake Energy currently has a Forward P/E ratio of 7.96. This valuation marks a premium compared to its industry's average Forward P/E of 5.63.
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 244, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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