Sm Energy Co Stock Alpha and Beta Analysis

SM Stock  USD 49.85  0.80  1.63%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as SM Energy Co. It also helps investors analyze the systematic and unsystematic risks associated with investing in SM Energy over a specified time horizon. Remember, high SM Energy's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to SM Energy's market risk premium analysis include:
Beta
1.51
Alpha
0.21
Risk
1.74
Sharpe Ratio
0.25
Expected Return
0.43
Please note that although SM Energy alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, SM Energy did 0.21  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of SM Energy Co stock's relative risk over its benchmark. SM Energy has a beta of 1.51  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, SM Energy will likely underperform. As of the 29th of March 2024, Price Book Value Ratio is likely to grow to 2.18. Also, Enterprise Value Multiple is likely to grow to 6.55.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out SM Energy Backtesting, SM Energy Valuation, SM Energy Correlation, SM Energy Hype Analysis, SM Energy Volatility, SM Energy History and analyze SM Energy Performance.

SM Energy Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. SM Energy market risk premium is the additional return an investor will receive from holding SM Energy long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in SM Energy. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate SM Energy's performance over market.
α0.21   β1.51

SM Energy expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of SM Energy's Buy-and-hold return. Our buy-and-hold chart shows how SM Energy performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

SM Energy Market Price Analysis

Market price analysis indicators help investors to evaluate how SM Energy stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading SM Energy shares will generate the highest return on investment. By understating and applying SM Energy stock market price indicators, traders can identify SM Energy position entry and exit signals to maximize returns.

SM Energy Return and Market Media

The median price of SM Energy for the period between Sat, Dec 30, 2023 and Fri, Mar 29, 2024 is 38.87 with a coefficient of variation of 11.0. The daily time series for the period is distributed with a sample standard deviation of 4.48, arithmetic mean of 40.71, and mean deviation of 3.92. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
SM Energy PT Lowered to 45.00 at Raymond James
01/11/2024
 
SM Energy dividend paid on 5th of February 2024
02/05/2024
2
SM Energy Sees RS Rating Rise To 71
02/14/2024
3
SM Energy Company Q4 2023 Earnings Call Transcript
02/22/2024
4
Disposition of 43506 shares by Mary Lutey of SM Energy at 44.5 subject to Rule 16b-3
03/01/2024
5
Disposition of 5000 shares by A Pursell of SM Energy subject to Rule 16b-3
03/04/2024
6
SM Energy Price Target Increased to 51.00 by Analysts at Mizuho
03/06/2024
7
Senior Vice President of Exploration Of SM Energy Sold 25 percent Of Their Shares
03/07/2024
8
Alps Advisors Inc. Invests 332000 in SM Energy - Defense World
03/11/2024
9
SM Energy Receives Average Recommendation of Moderate Buy from Brokerages - Defense World
03/19/2024
10
Acquisition by Brookman Barton R Jr of 18 shares of SM Energy subject to Rule 16b-3
03/21/2024
11
The Return Trends At SM Energy Look Promising
03/22/2024
12
SM Energy declares 0.18 dividend
03/26/2024

About SM Energy Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including SM Energy or other stocks. Alpha measures the amount that position in SM Energy has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 2023 2024 (projected)
Dividend Yield6.82E-40.0046080.01560.0164
Price To Sales Ratio1.351.271.942.63

SM Energy Upcoming Company Events

As portrayed in its financial statements, the presentation of SM Energy's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, SM Energy's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of SM Energy's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of SM Energy. Please utilize our Beneish M Score to check the likelihood of SM Energy's management manipulating its earnings.
28th of February 2024
Upcoming Quarterly Report
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25th of April 2024
Next Financial Report
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31st of December 2023
Next Fiscal Quarter End
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28th of February 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
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31st of December 2022
Last Financial Announcement
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When determining whether SM Energy is a strong investment it is important to analyze SM Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact SM Energy's future performance. For an informed investment choice regarding SM Energy Stock, refer to the following important reports:

Complementary Tools for SM Energy Stock analysis

When running SM Energy's price analysis, check to measure SM Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SM Energy is operating at the current time. Most of SM Energy's value examination focuses on studying past and present price action to predict the probability of SM Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SM Energy's price. Additionally, you may evaluate how the addition of SM Energy to your portfolios can decrease your overall portfolio volatility.
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SM Energy technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of SM Energy technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of SM Energy trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...