In the latest trading session, Coterra Energy (CTRA) closed at $26.34, marking a -0.19% move from the previous day. This change was narrower than the S&P 500's 0.92% loss on the day. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the independent oil and gas company had lost 18.95% over the past month, lagging the Oils-Energy sector's loss of 16.76% and the S&P 500's loss of 1% in that time.
Investors will be hoping for strength from Coterra Energy as it approaches its next earnings release. In that report, analysts expect Coterra Energy to post earnings of $1.05 per share. This would mark year-over-year growth of 303.85%. Meanwhile, our latest consensus estimate is calling for revenue of $2.02 billion, up 521.26% from the prior-year quarter.
CTRA's full-year Zacks Consensus Estimates are calling for earnings of $4.22 per share and revenue of $8.13 billion. These results would represent year-over-year changes of +87.56% and +122.7%, respectively.
It is also important to note the recent changes to analyst estimates for Coterra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.71% higher within the past month. Coterra Energy is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Coterra Energy is holding a Forward P/E ratio of 6.26. For comparison, its industry has an average Forward P/E of 4.15, which means Coterra Energy is trading at a premium to the group.
Investors should also note that CTRA has a PEG ratio of 0.11 right now. 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. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.21 based on yesterday's closing prices.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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