Chesapeake Energy (CHK) closed the most recent trading day at $2.60, making no change from the previous trading session. This move lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.91%.
Coming into today, shares of the natural gas company had lost 5.45% in the past month. In that same time, the Oils-Energy sector gained 3.38%, while the S&P 500 gained 4.16%.
Wall Street will be looking for positivity from CHK as it approaches its next earnings report date. This is expected to be February 27, 2019. The company is expected to report EPS of $0.17, down 43.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.04 billion, down 17.05% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CHK. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.32% lower within the past month. CHK is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CHK's current valuation metrics, including its Forward P/E ratio of 4.13. For comparison, its industry has an average Forward P/E of 13.09, which means CHK is trading at a discount to the group.
We can also see that CHK currently has a PEG ratio of 0.62. 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. CHK's industry had an average PEG ratio of 1.01 as of yesterday's close.
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 197, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Chesapeake Energy Corporation (NYSE:CHK
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