And the energy firm could increase even more due to recent acquisitions and a healthy dividend. But another likely reason is Big Money lifting the stock.
Big Money Likes Cenovus
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Cenovus has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals CVE has made the last year.
The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted 26 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
Year-to-date outperformance vs. Energy Select Sector SPDR ETF (+22.6% vs. XLE)
Outperformance is important for leading stocks.
Cenovus Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Cenovus has been growing sales well and is affordably priced. Take a look:
3-year sales growth rate (+78.1%)
Forward price-to-earnings ratio (+6x)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, CVE has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
CVE has a lot of qualities that are attracting Big Money. It’s made the Top 20 report four times in the last year, with its first appearance on 01/25/2022…and gaining 31.4% since. The blue bars below show when Cenovus was a top pick:
It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if CVE makes additional appearances in the years to come. Let’s tie this all together.
Cenovus Price Prediction
The Cenovus rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, and it pays a current dividend of more than 1.7%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in CVE at the time of publication.
Learn more about the MAPsignals process here.
This article was originally posted on FX Empire