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Coterra Energy (CTRA) Gains But Lags Market: What You Should Know

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Coterra Energy (CTRA - Free Report) closed at $26.35 in the latest trading session, marking a +1.74% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. At the same time, the Dow added 2.68%, and the tech-heavy Nasdaq lost 0.08%.

Heading into today, shares of the independent oil and gas company had lost 25.25% over the past month, lagging the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.

Wall Street will be looking for positivity from Coterra Energy as it approaches its next earnings report date. The company is expected to report EPS of $1.02, up 292.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.02 billion, up 521.32% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.16 per share and revenue of $8.2 billion, which would represent changes of +84.89% and +124.69%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Coterra Energy. Recent revisions tend to reflect the latest near-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. 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 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 3.14% higher within the past month. Coterra Energy is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Coterra Energy has a Forward P/E ratio of 6.23 right now. This represents a premium compared to its industry's average Forward P/E of 4.23.

Meanwhile, CTRA's PEG ratio is currently 0.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CTRA's industry had an average PEG ratio of 0.21 as of yesterday's close.

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 48, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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