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Why Chesapeake Energy (CHK) Could Be Positioned for a Surge


Chesapeake Energy Corporation CHK is a petroleum and natural gas exploration and production company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on CHK’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Chesapeake Energy could be a solid choice for investors.

Current Quarter Estimates for CHK

In the past 30 days, 4 estimates have gone higher for Chesapeake Energy while 2 have gone lower in the same time period. The trend has been pretty favorable too, with estimates rising from 6 cents a share 30 days ago, to 8 cents per share today, a move of 33.3%.

Current Year Estimates for CHK

Meanwhile, Chesapeake Energy’s current year figures are also looking quite promising, with 8 estimates moving higher in the past month, compared to 1 lower. The consensus estimate trend has also seen a boost for this time frame, rising from a loss of 18 cents per share 30 days ago to a loss of 9 cents per share today, a significant increase.

CHESAPEAKE ENGY Price and Consensus

Bottom Line

The stock has also started to move higher lately, adding 10.7% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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