Black Stone Minerals (BSM) closed the most recent trading day at $17.01, moving +1.49% from the previous trading session. This move outpaced the S&P 500’s daily loss of 0.2%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, added 1.39%.
Prior to today’s trading, shares of the partnership that owns mineral and royalty interests had gained 2.7% over the past month. This has lagged the Oils-Energy sector’s gain of 6.66% and the S&P 500’s gain of 4.01% in that time.
Investors will be hoping for strength from Black Stone Minerals as it approaches its next earnings release. In that report, analysts expect Black Stone Minerals to post earnings of $0.43 per share. This would mark year-over-year growth of 65.38%. Meanwhile, our latest consensus estimate is calling for revenue of $162.97 million, down 9.17% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Black Stone Minerals. 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 0.61% lower. Black Stone Minerals is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Black Stone Minerals is currently trading at a Forward P/E ratio of 7.72. This valuation marks a discount compared to its industry’s average Forward P/E of 10.93.
The Energy and Pipeline – Master Limited Partnerships industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BSM in the coming trading sessions, be sure to utilize Zacks.com.
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