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Equinor (EQNR) Outpaces Stock Market Gains: What You Should Know

Equinor (EQNR) closed at $28.92 in the latest trading session, marking a +1.69% move from the prior day. This change outpaced the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.

Prior to today's trading, shares of the oil and gas company had gained 5.1% over the past month. This has lagged the Oils-Energy sector's gain of 5.13% and outpaced the S&P 500's gain of 3.31% 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 $1.08 per share. This would mark a year-over-year decline of 32.5%. Our most recent consensus estimate is calling for quarterly revenue of $24.73 billion, down 31.41% from the year-ago period.

EQNR's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $186.3 billion. These results would represent year-over-year changes of -32.4% and +23.87%, respectively.

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It is also important to note the recent changes to analyst estimates for Equinor. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.27% lower. Equinor is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Equinor has a Forward P/E ratio of 5.9 right now. This represents a discount compared to its industry's average Forward P/E of 6.26.

Also, we should mention that EQNR has a PEG ratio of 0.8. 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. Oil and Gas - Refining and Marketing stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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.

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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Equinor ASA (EQNR) : Free Stock Analysis Report

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Zacks Investment Research