Key Takeaways From SM Energy Analyst Ratings

10 analysts have shared their evaluations of SM Energy SM during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $52.8, a high estimate of $63.00, and a low estimate of $46.00. A 1.09% drop is evident in the current average compared to the previous average price target of $53.38.

Investigating Analyst Ratings: An Elaborate Study

The standing of SM Energy among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SM Energy. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SM Energy compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of SM Energy's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of SM Energy's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on SM Energy analyst ratings.

Get to Know SM Energy Better

SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids. Operating primarily out of the United States, the company actively participates in joint ventures, prospects/leaseholds, and drill-to-earn opportunities. The majority of the company's revenue is derived from some of the United States' premier drilling locations. Drilling location interests have been traditionally obtained through oil and gas leases from third parties. SM Energy relies on its fleet of geologists, geophysicists, landmen, and engineers to help extract the full potential out of all properties held.

SM Energy's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, SM Energy showcased positive performance, achieving a revenue growth rate of 15.9% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.

Net Margin: SM Energy's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 33.2%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): SM Energy's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.58% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.22%, the company showcases effective utilization of assets.

Debt Management: SM Energy's debt-to-equity ratio is below the industry average at 0.41, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.