Cenovus Energy (CVE) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Cenovus Energy (CVE) closed at $17.75, marking a +0.97% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Prior to today's trading, shares of the oil company had lost 12.49% over the past month. This has lagged the Oils-Energy sector's gain of 0.29% and the S&P 500's gain of 7.25% in that time.
Wall Street will be looking for positivity from Cenovus Energy as it approaches its next earnings report date. In that report, analysts expect Cenovus Energy to post earnings of $0.80 per share. This would mark year-over-year growth of 788.89%. Our most recent consensus estimate is calling for quarterly revenue of $12.56 billion, up 45.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.02 per share and revenue of $49.91 billion, which would represent changes of +272.84% and +32.44%, respectively, from the prior year.
Any recent changes to analyst estimates for Cenovus Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 6.54% higher within the past month. Cenovus Energy is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Cenovus Energy's current valuation metrics, including its Forward P/E ratio of 5.83. This represents a premium compared to its industry's average Forward P/E of 5.74.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 2, putting it in the top 1% 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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