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Canadian Natural Resources (CNQ) Outpaces Stock Market Gains: What You Should Know

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Canadian Natural Resources (CNQ - Free Report) closed the most recent trading day at $61.08, moving +1.21% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.19%. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.

Coming into today, shares of the oil and natural gas company had gained 8.1% in the past month. In that same time, the Oils-Energy sector gained 5.68%, while the S&P 500 gained 4.06%.

Canadian Natural Resources will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.67, down 5.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.03 billion, down 4.33% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Canadian Natural Resources. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 16.31% lower. Canadian Natural Resources is currently a Zacks Rank #3 (Hold).

Digging into valuation, Canadian Natural Resources currently has a Forward P/E ratio of 9.37. For comparison, its industry has an average Forward P/E of 6.25, which means Canadian Natural Resources is trading at a premium to the group.

Investors should also note that CNQ has a PEG ratio of 0.69 right now. 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. The Oil and Gas - Exploration and Production - Canadian was holding an average PEG ratio of 0.42 at yesterday's closing price.

The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 12% 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.

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