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Cenovus Energy (CVE) Outpaces Stock Market Gains: What You Should Know

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Cenovus Energy (CVE - Free Report) closed at $17.73 in the latest trading session, marking a +0.68% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.66%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 0.05%.

Coming into today, shares of the oil company had gained 1.62% in the past month. In that same time, the Oils-Energy sector gained 4.6%, while the S&P 500 lost 3.79%.

Wall Street will be looking for positivity from Cenovus Energy as it approaches its next earnings report date. On that day, Cenovus Energy is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 357.14%. Meanwhile, our latest consensus estimate is calling for revenue of $11.58 billion, up 8.56% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $50.01 billion, which would represent changes of +320.99% and +32.69%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Cenovus Energy. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Cenovus Energy currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Cenovus Energy currently has a Forward P/E ratio of 5.16. Its industry sports an average Forward P/E of 5.59, so we one might conclude that Cenovus Energy is trading at a discount comparatively.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 10, putting it in the top 4% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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