Should Southwestern Energy Company (NYSE: SWN) Investors Be Concerned?

The trading price of Southwestern Energy Company (NYSE:SWN) floating lower at last check on Wednesday, January 18, closing at $5.97, -0.58% lower than its previous close.

Traders who pay close attention to intraday price movement should know that it has been fluctuating between $5.95 and $6.13. The company’s P/E ratio in the trailing 12-month period was 4.38, while its 5Y monthly beta was 1.26. In examining the 52-week price action we see that the stock hit a 52-week high of $9.87 and a 52-week low of $3.81. Over the past month, the stock has lost -3.84% in value.

5 Undervalued Stocks For 2023

Approximately 544 miles north of Las Vegas lies what’s been dubbed “the biggest lithium deposit in the US.” One tiny company stands to be the biggest beneficiary because lithium “faces a long-term supply shortage,” according to Barron’s. This company, however, is sitting on a goldmine opportunity as it plans to produce 30,000 tonnes per annum over the next 3.5 years from this single deposit. Supplying the electric vehicle boom and potentially driving its stock price off the charts.

But this is just one of the opportunities we have researched in our free report. The other four companies have just as much potential.

Click here to download your Free Copy…


Southwestern Energy Company, whose market valuation is $6.67 billion at the time of this writing, is expected to release its quarterly earnings report Feb 22, 2023 – Feb 27, 2023. Investors’ optimism about the company’s current quarter earnings report is understandable. Analysts have predicted the quarterly earnings per share to grow by $0.36 per share this quarter, however they have predicted annual earnings per share of $1.4 for 2022 and $2.11 for 2023. It means analysts are expecting annual earnings per share growth of 33.30% this year and 50.70% next year.

Analysts have forecast the company to bring in revenue of $1.89 billion for the current quarter, with the likely lows of $1.28 billion and highs of $2.64 billion. The average estimate suggests sales will likely down by -35.80% this quarter compared to what was recorded in the comparable quarter last year. From the analysts’ viewpoint, the consensus estimate for the company’s annual revenue in 2022 is $9.24 billion. The company’s revenue is forecast to grow by 38.60% over what it did in 2022.

A company’s earnings reviews provide a brief indication of a stock’s direction in the short term, where in the case of Southwestern Energy Company 1 upward and no downward comments were posted in the last 7 days. On the technical side, indicators suggest SWN has a 50% Sell on average for the short term. According to the data of the stock’s medium term indicators, the stock is currently averaging as a 100% Sell, while an average of long term indicators suggests that the stock is currently 100% Sell.

Here is the average analyst rating on the stock as represented by 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock should be considered as either strong buy or strong sell respectively. The number of analysts that have assigned SWN a recommendation rating is 23. Out of them, 8 rate it a Hold, while 10 recommend Buy, whereas 2 assign an Overweight rating. 1 analyst(s) have tagged Southwestern Energy Company (SWN) as Underweight, while 2 advise Sell. Analysts have rated the stock Overweight, likely urging investors to take advantage of the opportunity to add to their holdings of the company’s shares.

If we dig deeper into the stock’s outlook, we see that the stock’s PEG is 0.22, which symbolizes a positive outlook. A quick review shows that SWN’s price is currently 1.67% off the SMA20 and -5.68% off the SMA50. The RSI metric on the 14-day chart is currently showing 49.54, and weekly volatility stands at 3.49%. When measured over the past 30 days, the indicator reaches 4.26%. Southwestern Energy Company (NYSE:SWN)’s beta value is currently sitting at 1.36, while the Average True Range indicator is currently displaying 0.29. With analysts defining $6.00-$17.50 as the low and high price targets, we arrive at a consensus price target of $10.17 for the trailing 12-month period. The current price is about -0.5% off the estimated low and -193.13% off the forecast high, based on this estimate. Investors will be thrilled if SWN’s share price rises to $9.00, which is the median consensus price. At that level, SWN’s share price would be -50.75% below current price.

To see how Southwestern Energy Company stock has been performing today in comparison to its peers in the industry, here are the numbers: SWN stock’s performance was -0.58% at last check in today’s session, and 25.21% in the past year, while Hess Corporation (HES) has been trading 3.02% in recent session and positioned 67.37% higher than it was a year ago. Another comparable company Marathon Oil Corporation (MRO) saw its stock trading 3.71% higher in today’s session but was up 44.32% in a year. Southwestern Energy Company has a P/E ratio of 4.38, compared to Hess Corporation’s 25.23 and Marathon Oil Corporation’s 5.15. Also during today’s trading, the S&P 500 Index has plunged -0.14%, while the Dow Jones Industrial also saw a negative session, down -0.46% today.

An evaluation of the daily trading volume of Southwestern Energy Company (NYSE:SWN) indicates that the 3-month average is 24.28 million. However, this figure has increased over the past 10 days to an average of 20.21 million.

Currently, records show that 1.11 billion of the company’s shares remain outstanding. The insiders hold 0.50% of outstanding shares, whereas institutions hold 84.30%. The stats also highlight that short interest as of Oct 13, 2022, stood at 47.54 million shares, resulting in a short ratio of 1.5 at that time. From this, we can conclude that short interest is 4.27% of the company’s total outstanding shares. It is noteworthy that short shares in October were up slightly from the previous month’s figure, which was 45.11 million. However, since the stock’s price has seen 2.74% year-to-date, investors’ interest is likely to be reignited due to its potential to move even higher.