SM Energy (SM) Stock Falls Behind Market Gains: Key Insights

SM Energy (SM) stock price fell 3.37% to $27.56, underperforming the S&P 500's 0.14% gain. Shares have risen 0.92% in the past month, trailing the Oils-Energy sector's 2.89% gain and the S&P 500's 3.97% gain. The company's Q1 EPS is projected at $1.22, down 34.05% YoY, and Q1 revenue is expected to be $784.5 million, up 23.63% YoY. The Zacks Rank is #3 (Hold).

SM Energy (SM) stock price fell by 3.37% to $27.56 on July 2, 2025, underperforming the S&P 500's 0.14% gain. This decline follows a 0.92% increase in the past month, which lagged the Oils-Energy sector's 2.89% gain and the S&P 500's 3.97% gain. Analysts expect the company's Q1 EPS to be $1.22, representing a year-over-year (YoY) decline of 34.05%, while Q1 revenue is projected at $784.5 million, up 23.63% YoY [1].

The Zacks Rank for SM Energy is currently at #3 (Hold), indicating a neutral outlook. The company's Forward P/E ratio stands at 4.44, which is below the industry average of 10.83, suggesting that SM Energy might be undervalued compared to its peers [1].

Investors should keep an eye on the upcoming earnings report, where analysts expect earnings of $1.22 per share, a significant drop from the previous year. The Zacks Consensus Estimate for revenue is $781.71 million, up 23.19% YoY. These figures highlight the challenges faced by SM Energy, particularly in the energy sector, which has been volatile due to global market dynamics [1].

Recent acquisitions and strategic moves, such as the acquisition of Uinta Basin assets from XCL Resources, have been positive developments for SM Energy. These moves have been aimed at expanding the company's portfolio and increasing operational efficiency [2]. However, the stock's recent performance indicates that market sentiment remains cautious.

In conclusion, while SM Energy has shown resilience through strategic acquisitions and operational improvements, the stock's underperformance relative to the broader market and sector suggests that investors should remain vigilant. The upcoming earnings report will provide more clarity on the company's financial health and future prospects.

References:
[1] https://sg.finance.yahoo.com/news/heres-why-sm-energy-sm-220012656.html
[2] https://finviz.com/quote.ashx?t=SM