Chesapeake Energy (CHK) Outpaces Stock Market Gain: What You Should Know

In the last trading session, Chesapeake Energy (CHK) was closed at $ 2.98, marking a + 1.19% draw from the previous day. This change exceeded the S & P 500's 0.47% gain on the day. Elsewhere Dow achieved 0.31% while the tech-heavy Nasdaq added 0.34%.

Prior to today's trading, shares in the natural gas company had lost 6.37% over the past month. This has lowered the Oil Energy sector's gains of 0.41% and the S&P 500s gain of 4.67% in that time.

Investors will hope for strength from the CHK as it approaches the next earnings release, which is expected to be May 8, 2019. On that day, CHK is expected to report revenue of $ 0.14 per share, which would represent a decline of 58.82% from year to year. Meanwhile, the Zacks Consensus Estimate for revenue represents a net revenue of $ 1.09 billion, down 12.02% from the previous period.

For the full year, our Zacks Consensus Estimates revenue of $ 0.60 per share and a turnover of $ 4.89 billion, which would represent changes of -33.33% and -5.22%, respectively, from the previous year.

Investors should also note any recent changes in analyzer estimates for CHK. These latest revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business view.

Research indicates that these estimate audits are directly correlated with near-time price mode. To take advantage of this, we have developed the Zacks Rank, a proprietary model that takes these estimates into account and provides a usable rating system.

From # 1 (Strong Buy) to # 5 (Strong Sell), Zack's rating system has a proven, unauthorized record of results, with # 1 stocks returning an average of 25% annually since 1988. Over the past month, The Zacks Consensus EPS estimates moved 12.09% higher. CHK is currently running a Zacks ranking of # 3 (Hold).

With regard to valuation, CHK is currently trading with a Forward P / E ratio of 4.88. By comparison, the industry has an average Forward P / E of 13.31, which means that the CHK trades at a discount to the group.

Meanwhile, the CHK's PEG ratio is currently 0.78. This popular metric is similar to the known P / E ratio, as the difference is that the PEG ratio also takes into account the company's expected earnings growth. Oil and gas survey and production – The US held an average PEG ratio of 1.02 in yesterday's closing price.

Oil and gas research and production – The US industry is part of the Oil Energy sector. This group has a Zacks Industry Rank of 69 and puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our industry groups by measuring the average Zacks Rank of the individual stocks in the groups. Our surveys show that top 50% rated industries exceed the bottom half by a factor of 2 to 1.

You can find more information on all these calculations, and much more, at Zacks.com.

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