Chesapeake Energy Corporation (CHK) Worth A Look

Aubrey McClendon Chesapeake Energy Corporation Chesapeake Capital Jerry Parker'Aubrey McClendon Chesapeake Energy Corporation

For investors on the look out for opportunities, Chesapeake Energy Corporation (NYSE:CHK) might be an interesting stock to consider.

The security sits in the Oil & Gas – US Exploration & Production space, and is subject to earnings estimate revision activity. According to the Zacks Industry Rank, it is a strong candidate.

Chesapeake Energy looks good in a strong segment

The ranking is important because we often see a rising tide lifting every company in a certain industry. This is because broad trends in a particular area can lead to better performance from all of the securities in a certain segment.

This may well be what is happening Oil & Gas – US Exploration & Production space, given the fact that it is currently ranked number 73 out of over 250 industries on the Zacks Industry Rank. This would suggest that the segment is a strong one, particularly compared to others.

At the same time Chesapeake Energy is doing well of its own accord. Over the course of the past month the company has had some good earnings estimate revisions, and as such it would appear that analysts are becoming more bullish on both short and long term prospects for the firm.

Investors should take a look at investment opportunities

Estimates for the current quarter have fallen from a loss of 9 cents per share to a loss of 8 cents per share in the past month. Estimates for the current year have fallen from a loss of 37 cents per share to a loss of 34 cents per share. As it stands the company has a Zacks Rank #3, or Hold, which is also a positive sign.

In conclusion it is certainly worth taking a look at Chesapeake Energy if you want to invest in a good firm in what is currently a strong industry. The estimate revisions are an encouraging sign for the company, which sits in a top third industry.

On balance Chesapeake could be a decent prospect if you are wondering which company to invest in in the Oil & Gas – US Exploration & Production space. All of the indications are good for strong future performance.

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About the Author

Brendan Byrne
While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. To contact Brendan or give him an exclusive, please contact him at theflask@gmail.com

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