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Cenovus Energy (CVE) Dips More Than Broader Markets: What You Should Know

·3 min read

In the latest trading session, Cenovus Energy (CVE) closed at $18.54, marking a -1.44% move from the previous day. This move lagged the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%.

Prior to today's trading, shares of the oil company had gained 0.8% over the past month. This has lagged the Oils-Energy sector's gain of 1.38% and outpaced the S&P 500's loss of 9.06% in that time.

Cenovus Energy will be looking to display strength as it nears its next earnings release. On that day, Cenovus Energy is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 357.14%. Our most recent consensus estimate is calling for quarterly revenue of $11.58 billion, up 8.56% from the year-ago period.

CVE's full-year Zacks Consensus Estimates are calling for earnings of $3.41 per share and revenue of $50.01 billion. These results would represent year-over-year changes of +320.99% and +32.69%, respectively.

Any recent changes to analyst estimates for Cenovus Energy 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cenovus Energy is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Cenovus Energy currently has a Forward P/E ratio of 5.52. For comparison, its industry has an average Forward P/E of 5.74, which means Cenovus Energy is trading at a discount to the group.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% 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.

To follow CVE in the coming trading sessions, be sure to utilize Zacks.com.

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