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

In the latest trading session, Equinor (EQNR) closed at $29.06, marking a -0.89% move from the previous day. This change lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.

Heading into today, shares of the oil and gas company had gained 7.24% over the past month, lagging the Oils-Energy sector's gain of 12.14% and outpacing the S&P 500's gain of 6.17% in that time.

Investors will be hoping for strength from Equinor as it approaches its next earnings release. On that day, Equinor is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 26.88%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.73 billion, down 31.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.09 per share and revenue of $186.3 billion, which would represent changes of -28.61% and +23.87%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Equinor. These recent revisions tend to reflect the evolving nature of short-term business trends. 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, 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 9.47% lower. Equinor is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Equinor has a Forward P/E ratio of 5.76 right now. For comparison, its industry has an average Forward P/E of 6.49, which means Equinor is trading at a discount to the group.

It is also worth noting that EQNR currently has a PEG ratio of 0.78. 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. EQNR's industry had an average PEG ratio of 0.85 as of yesterday's close.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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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