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Equinor (EQNR) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3-min read

Equinor (EQNR) closed the most recent trading day at $32.54, moving +0.71% from the previous trading session. This change lagged the S&P 500's 3.06% gain on the day. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Prior to today's trading, shares of the oil and gas company had lost 13.56% over the past month. This has lagged the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.

Investors will be hoping for strength from Equinor as it approaches its next earnings release. In that report, analysts expect Equinor to post earnings of $1.24 per share. This would mark year-over-year growth of 153.06%.

EQNR's full-year Zacks Consensus Estimates are calling for earnings of $5.56 per share and revenue of $201.08 billion. These results would represent year-over-year changes of +80.52% and +124.76%, respectively.

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Any recent changes to analyst estimates for Equinor should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Equinor is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Equinor is currently trading at a Forward P/E ratio of 5.81. Its industry sports an average Forward P/E of 8.55, so we one might conclude that Equinor is trading at a discount comparatively.

Meanwhile, EQNR's PEG ratio is currently 0.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.6 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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Zacks Investment Research