This story originally appeared on Zacks
PDC Energy (PDCE) closed at $58.05 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500’s 0.09% gain on the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.24%.
– Zacks
Heading into today, shares of the independent oil and gas company had gained 7.62% over the past month, outpacing the Oils-Energy sector’s gain of 2.92% and the S&P 500’s loss of 4.02% in that time.
Wall Street will be looking for positivity from PDC Energy as it approaches its next earnings report date. This is expected to be February 28, 2022. In that report, analysts expect PDC Energy to post earnings of $2.40 per share. This would mark year-over-year growth of 118.18%. Meanwhile, our latest consensus estimate is calling for revenue of $691.65 million, up 148.29% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for PDC Energy. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.67% higher. PDC Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, PDC Energy is currently trading at a Forward P/E ratio of 5.69. For comparison, its industry has an average Forward P/E of 5.9, which means PDC 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 group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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