Southwestern Energy (SWN) Outpaces Stock Market Gains: What You Should Know

Southwestern Energy (SWN) closed at $6.34 in the latest trading session, marking a +1.44% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.4%.

Coming into today, shares of the independent oil and gas company had lost 33.3% in the past month. In that same time, the Oils-Energy sector lost 14.41%, while the S&P 500 lost 8.3%.

Wall Street will be looking for positivity from Southwestern Energy as it approaches its next earnings report date. The company is expected to report EPS of $0.36, up 89.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.79 billion, up 70.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.54 per share and revenue of $8.26 billion, which would represent changes of +46.67% and +23.87%, respectively, from the prior year.

Any recent changes to analyst estimates for Southwestern Energy should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 2.4% higher. Southwestern Energy is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Southwestern Energy's current valuation metrics, including its Forward P/E ratio of 4.05. For comparison, its industry has an average Forward P/E of 4.14, which means Southwestern Energy is trading at a discount to the group.

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 27, which puts it in the top 11% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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