Earthstone Story

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ESTE -- USA Stock  

USD 7.04  0.04  0.57%

In general, we focus on analyzing Earthstone (NYSE:ESTE) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Earthstone Energy daily price indicators and compare them against related drivers. A current spike in volatility has left many shareholders looking confused. In this story, we will digest Earthstone Energy. We will evaluate why recent Earthstone Energy price moves suggest a bounce in May.
Published over two weeks ago
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What is May outlook for Earthstone Energy (NYSE:ESTE)?
We provide trade advice to complement the prevailing expert consensus on Earthstone Energy. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
The company has Profit Margin (PM) of (9.37) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (4.32) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.04.
The successful prediction of Earthstone Energy stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Earthstone Energy, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Earthstone Energy based on Earthstone Energy hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Earthstone Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Earthstone Energy's related companies.

Use Technical Analysis to project Earthstone expected Price

Earthstone 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 Earthstone Energy technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Earthstone 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...

How Earthstone utilizes its cash?

To perform a cash flow analysis of Earthstone Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Earthstone Energy is receiving and how much cash it distributes out in a given period. The Earthstone Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Earthstone Energy Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 131.5 Million

Detailed Perspective On Earthstone Energy

The latest price surge of Earthstone Energy could raise concerns from shareholders as the firm it trading at a share price of 7.15 on 3,182,973,376 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in May. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.95. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Earthstone Energy partners.
 2018 2019 2020 2021 (projected)
Interest Expense2.9 M6.57 M5.23 M5.65 M
Gross Profit136.77 M150.71 M105.98 M87.95 M

Cost of Revenue Breakdown

Earthstone Energy Cost of Revenue is increasing over the years with slightly volatile fluctuation. Cost of Revenue is expected to dwindle to about 31 M. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Earthstone Energy Cost of Revenue is projected to increase significantly based on the last few years of reporting. The past year's Cost of Revenue was at 38.54 Million
201411.42 Million
201518 Million
201617.27 Million
201725.72 Million
201828.58 Million
201940.55 Million
202038.54 Million
202130.97 Million

Will Earthstone Energy continue to go ballistic?

Market risk adjusted performance is down to 0.86. It may indicate a possible volatility dip. Earthstone Energy shows above-average downside volatility for the selected time horizon. We advise investors to inspect Earthstone Energy further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Earthstone Energy future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Earthstone Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Earthstone Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Earthstone Energy

Although few other entities in the oil & gas e&p industry are either recovering or due for a correction, Earthstone Energy may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 3rd of April 2021, our analysis shows that Earthstone Energy almost mirrors the market. The firm is overvalued and projects below average probability of financial unrest for the next 2 years. Our up-to-date 30 days buy vs. sell advice on the firm is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Earthstone Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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