In the latest trading session, Cenovus Energy (CVE) closed at $20.40, marking a +1.19% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.25%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.
Coming into today, shares of the oil company had gained 4.46% in the past month. In that same time, the Oils-Energy sector gained 4.55%, while the S&P 500 gained 5.73%.
Wall Street will be looking for positivity from Cenovus Energy as it approaches its next earnings report date. This is expected to be February 16, 2023. In that report, analysts expect Cenovus Energy to post earnings of $0.59 per share. This would mark year-over-year growth of 37.21%. Meanwhile, our latest consensus estimate is calling for revenue of $9.77 billion, down 10.31% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Cenovus 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 9.82% lower. Cenovus Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Cenovus Energy is currently trading at a Forward P/E ratio of 9.14. Its industry sports an average Forward P/E of 9.12, so we one might conclude that Cenovus Energy is trading at a premium comparatively.
The Oil and Gas – Integrated – Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% 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 CVE in the coming trading sessions, be sure to utilize Zacks.com.
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