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Ovintiv (OVV) Gains But Lags Market: What You Should Know

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Ovintiv (OVV) closed the most recent trading day at $48.84, moving +0.29% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.21%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.16%.

Heading into today, shares of the energy company had gained 6.61% over the past month, outpacing the Oils-Energy sector's gain of 2.47% and the S&P 500's gain of 3.2% in that time.

Investors will be hoping for strength from Ovintiv as it approaches its next earnings release, which is expected to be August 3, 2022. In that report, analysts expect Ovintiv to post earnings of $2.69 per share. This would mark year-over-year growth of 142.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.66 billion, up 57.43% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.50 per share and revenue of $10.43 billion, which would represent changes of +93.88% and +20.43%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Ovintiv. 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. 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 0.49% higher within the past month. Ovintiv is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Ovintiv has a Forward P/E ratio of 5.13 right now. For comparison, its industry has an average Forward P/E of 5.13, which means Ovintiv is trading at a no noticeable deviation to the group.

Investors should also note that OVV has a PEG ratio of 0.12 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Exploration and Production - Canadian was holding an average PEG ratio of 0.32 at yesterday's closing price.

The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 239, putting it in the bottom 6% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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