Cenovus Energy (CVE) ended the recent trading session at $19.46, demonstrating a -1.32% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.54% for the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.56%.
Shares of the oil company witnessed a gain of 12.49% over the previous month, beating the performance of the Oils-Energy sector with its gain of 10.35%, and the S&P 500's gain of 0.74%.
Market participants will be closely following the financial results of Cenovus Energy in its upcoming release. On that day, Cenovus Energy is projected to report earnings of $0.28 per share, which would represent year-over-year growth of 460%. Meanwhile, the latest consensus estimate predicts the revenue to be $9.66 billion, indicating a 15.08% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.51 per share and revenue of $37.08 billion. These totals would mark changes of +23.77% and 0%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Cenovus Energy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 15.26% decrease. Cenovus Energy is currently sporting a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Cenovus Energy is currently being traded at a Forward P/E ratio of 16.39. This valuation marks a discount compared to its industry average Forward P/E of 19.58.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 228, placing it within the bottom 7% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cenovus Energy Inc (CVE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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