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Canadian Natural Resources (CNQ) Gains But Lags Market: What You Should Know

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Canadian Natural Resources (CNQ) closed at $50.52 in the latest trading session, marking a +1.53% move from the prior day. This move lagged the S&P 500's daily gain of 3.06%. Elsewhere, the Dow gained 2.68%, while the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the oil and natural gas company had lost 24.33% over the past month. This has lagged the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.

Wall Street will be looking for positivity from Canadian Natural Resources as it approaches its next earnings report date. In that report, analysts expect Canadian Natural Resources to post earnings of $2.23 per share. This would mark year-over-year growth of 120.79%. Our most recent consensus estimate is calling for quarterly revenue of $7.68 billion, up 44.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.64 per share and revenue of $32.11 billion. These totals would mark changes of +73.15% and +33.77%, respectively, from last year.

Any recent changes to analyst estimates for Canadian Natural Resources should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.1% higher. Canadian Natural Resources is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Canadian Natural Resources is holding a Forward P/E ratio of 5.76. This represents a premium compared to its industry's average Forward P/E of 4.54.

It is also worth noting that CNQ currently has a PEG ratio of 0.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CNQ's industry had an average PEG ratio of 0.3 as of yesterday's close.

The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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