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Continental Resources (CLR) Gains As Market Dips: What You Should Know

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In the latest trading session, Continental Resources (CLR - Free Report) closed at $67.69, marking a +0.61% move from the previous day. This change outpaced the S&P 500's 2.01% loss on the day. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the independent oil and gas company had lost 2.51% in the past month. In that same time, the Oils-Energy sector lost 13.54%, while the S&P 500 lost 6.08%.

Continental Resources will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.95, up 224.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.59 billion, up 110.03% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.19 per share and revenue of $10.18 billion, which would represent changes of +161.59% and +78.05%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Continental Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.35% higher. Continental Resources is currently a Zacks Rank #3 (Hold).

Digging into valuation, Continental Resources currently has a Forward P/E ratio of 5.52. Its industry sports an average Forward P/E of 4.6, so we one might conclude that Continental Resources is trading at a premium comparatively.

We can also see that CLR currently has a PEG ratio of 0.16. 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. CLR's industry had an average PEG ratio of 0.22 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 60, which puts it in the top 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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