Canadian Natural Resources (CNQ) Gains But Lags Market: What You Should Know
In the latest trading session, Canadian Natural Resources (CNQ) closed at $55.60, marking a +0.25% move from the previous day. This change lagged the S&P 500's 1.22% gain on the day. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 4.63%.
Prior to today's trading, shares of the oil and natural gas company had lost 1.02% over the past month. This has lagged the Oils-Energy sector's gain of 2.49% and the S&P 500's gain of 6.22% in that time.
Investors will be hoping for strength from Canadian Natural Resources as it approaches its next earnings release. The company is expected to report EPS of $1.01, down 60.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.58 billion, down 37.97% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.18 per share and revenue of $24.65 billion. These totals would mark changes of -39.84% and -24.32%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Canadian Natural Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 5.81% lower within the past month. Canadian Natural Resources currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Canadian Natural Resources is holding a Forward P/E ratio of 10.7. This represents a premium compared to its industry's average Forward P/E of 6.91.
It is also worth noting that CNQ currently has a PEG ratio of 0.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - Canadian industry currently had an average PEG ratio of 0.6 as of yesterday's close.
The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
