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Centennial Resource (CDEV) Flat As Market Gains: What You Should Know

·3 min read

Centennial Resource (CDEV) closed at $5.98 in the latest trading session, marking no change from the prior day. This move lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.55%.

Heading into today, shares of the company had lost 29.31% over the past month, lagging the Oils-Energy sector's loss of 14.41% and the S&P 500's loss of 8.3% in that time.

Investors will be hoping for strength from Centennial Resource as it approaches its next earnings release. In that report, analysts expect Centennial Resource to post earnings of $0.39 per share. This would mark year-over-year growth of 1850%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $377.22 million, up 62.19% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.06 per share and revenue of $2.06 billion, which would represent changes of +198.55% and +99.54%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Centennial Resource. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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% higher within the past month. Centennial Resource is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Centennial Resource currently has a Forward P/E ratio of 2.9. This valuation marks a discount compared to its industry's average Forward P/E of 4.14.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.

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

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