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SM Energy Company (SM) Stock Analysis

Breakout setup

SellVALUE-TRAP 1/5Moderate Confidence

Energy · Oil & Gas E&P

Earnings in 6 days (2026-05-06). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. At $30.53, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 6.9%; Concentration risk — Commodity: oil, gas, and NGL.

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the United States. The company holds working interests in oil and gas producing wells in the Midland Basin, South Texas,... Read more

$30.53+7.0% A.UpsideScore 5.3/10#25 of 37 Oil & Gas E&P
Stop $28.46Target $32.73(analyst − 13%)A.R:R 0.5:1
Analyst target$37.62+23.2%13 analysts
$32.73our TP
$30.53price
$37.62mean
$58

Sell if holding. At $30.53, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 6.9%; Concentration risk — Commodity: oil, gas, and NGL. Chart setup: Golden cross, above all MAs, RSI 59, MACD bullish. Score 5.3/10, moderate confidence.

Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (3/4)
Attractive valuation
Margin of safety: 63%
Risks
Concentration risk — Commodity: oil, gas, and NGL
Thin upside margin: 6.9%
Earnings in 6 days (event risk)

Key Metrics

P/E (TTM)5.5
P/E (Fwd)4.2
Mkt Cap$7.5B
EV/EBITDA4.5
Profit Mgn21.4%
ROE14.3%
Rev Growth-17.1%
Beta0.78
Dividend2.63%
Rating analysts23

Quality Signals

Piotroski F6/9

Options Flow

P/C1.09bearish
IV69%elevated

Concentration Risks(10-K Item 1A)

  • HIGHCommodityoil, gas, and NGL
    10-K Item 1A: 'Our revenues, operating results, profitability, future rate of growth, and the carrying value of our oil and gas properties depend heavily on the prices we receive for oil, gas, and NGL sales.'

Material Events(8-K, last 90d)

  • 2026-02-09Item 4.01HIGH
    SM Energy dismissed Ernst & Young as auditor, effective upon completion of FY2025 audit; appointed Deloitte & Touche LLP for FY2026. No disagreements with EY cited.
    SEC filing →
  • 2026-01-26Item 5.02LOW
    Four directors (Bailo, Powers, Sullivan, Vogel) resigned contingent on Civitas Merger closing on Jan 20, 2026; new directors appointed per Merger Agreement. No disagreements cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Revenue shrinking — -17.1% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Earnings Growth
0.0
Declining revenue: -17%

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
1.1
Quality Rank
5.8
Value Rank
7.5
Attractive P/E vs peers
GatesA.R:R 0.5 < 1.5@spotEARNINGS PROXIMITY 6d<=7dMomentum 6.7>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
59 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $24.91Resistance $31.92

Price Targets

$28
$33
A.Upside+7.2%
A.R:R0.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Reward/Risk 0.5:1 at current price — below 1.5:1 minimum
! EARNINGS_PROXIMITY:6d<=7d

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-06 (6d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SM stock a buy right now?

Sell if holding. At $30.53, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 6.9%; Concentration risk — Commodity: oil, gas, and NGL. Chart setup: Golden cross, above all MAs, RSI 59, MACD bullish. Prior stop was $28.46. Score 5.3/10, moderate confidence.

What is the SM stock price target?

Take-profit target: $32.73 (+7.0% upside). Prior stop was $28.46. Stop-loss: $28.46.

What are the risks of investing in SM?

Concentration risk — Commodity: oil, gas, and NGL; Thin upside margin: 6.9%; Earnings in 6 days (event risk).

Is SM overvalued or undervalued?

SM Energy Company trades at a P/E of 5.5 (forward 4.2). TrendMatrix value score: 8.6/10. Verdict: Sell.

What do analysts say about SM?

23 analysts cover SM with a consensus score of 3.8/5. Average price target: $38.

What does SM Energy Company do?SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production...

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the United States. The company holds working interests in oil and gas producing wells in the Midland Basin, South Texas, Uinta Basin, and DJ Basin. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado.

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