Cenovus Energy (CVE) Stock Sinks As Market Gains: Here's Why
In the latest market close, Cenovus Energy (CVE) reached $16.20, with a -0.25% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.54% for the day. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 0.65%.
Heading into today, shares of the oil company had lost 18.27% over the past month, lagging the Oils-Energy sector's loss of 3.91% and the S&P 500's gain of 4.86% in that time.
The investment community will be closely monitoring the performance of Cenovus Energy in its forthcoming earnings report. The company is expected to report EPS of $0.53, down 26.39% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.11 billion, reflecting a 6.93% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.85 per share and revenue of $40.95 billion, indicating changes of +17.83% and +5.84%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cenovus Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Cenovus Energy boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Cenovus Energy is presently being traded at a Forward P/E ratio of 8.79. This expresses a discount compared to the average Forward P/E of 10.46 of its industry.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Cenovus Energy Inc (CVE) : Free Stock Analysis Report