Black Stone Minerals (BSM) closed at $13.48 in the latest trading session, marking a +1.81% move from the prior day. The stock lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.68%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the partnership that owns mineral and royalty interests had lost 16.41% over the past month. This has lagged the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.
Wall Street will be looking for positivity from Black Stone Minerals as it approaches its next earnings report date. The company is expected to report EPS of $0.40, up 60% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $159.37 million, up 172.71% from the year-ago period.
BSM's full-year Zacks Consensus Estimates are calling for earnings of $1.68 per share and revenue of $587.34 million. These results would represent year-over-year changes of +80.65% and +63.49%, respectively.
It is also important to note the recent changes to analyst estimates for Black Stone Minerals. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.05% higher. Black Stone Minerals is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Black Stone Minerals has a Forward P/E ratio of 7.9 right now. For comparison, its industry has an average Forward P/E of 10.51, which means Black Stone Minerals is trading at a discount to the group.
The Energy and Pipeline - Master Limited Partnerships industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% 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.
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