Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Coterra Energy (CTRA - Free Report) closed at $25.62, marking a +1.26% move from the previous day. This change lagged the S&P 500's 1.89% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 10%.

Heading into today, shares of the independent oil and gas company had gained 3.22% over the past month, lagging the Oils-Energy sector's gain of 5.98% and outpacing the S&P 500's gain of 2.3% in that time.

Coterra Energy will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2023. The company is expected to report EPS of $1.25, up 50.6% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.26 billion, up 1.49% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Coterra Energy. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 8.37% lower. Coterra Energy currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Coterra Energy has a Forward P/E ratio of 6.77 right now. This represents a premium compared to its industry's average Forward P/E of 5.23.

Investors should also note that CTRA has a PEG ratio of 0.12 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CTRA's industry had an average PEG ratio of 0.2 as of yesterday's close.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 8% of all 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.

To follow CTRA in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Coterra Energy Inc. (CTRA) - free report >>

Published in