Chesapeake Energy (CHK) closed at $2.40 in the latest trading session, marking a +0.42% move from the prior day. This change outpaced the S&P 500's 0.07% gain on the day. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.13%.
Prior to today's trading, shares of the natural gas company had lost 12.45% over the past month. This has lagged the Oils-Energy sector's gain of 2.56% and the S&P 500's gain of 5.36% in that time.
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. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, down 17.05% from the year-ago period.
It is also important to note the recent changes to analyst estimates for CHK. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Within the past 30 days, our consensus EPS projection has moved 20.41% lower. CHK is currently a Zacks Rank #3 (Hold).
Investors should also note CHK's current valuation metrics, including its Forward P/E ratio of 3.83. This valuation marks a discount compared to its industry's average Forward P/E of 11.47.
It is also worth noting that CHK currently has a PEG ratio of 0.58. 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. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.86 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 207, which puts it in the bottom 19% 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.
To follow CHK in the coming trading sessions, be sure to utilize Zacks.com.