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Cenovus Energy (CVE) Gains But Lags Market: What You Should Know

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In the latest trading session, Cenovus Energy (CVE - Free Report) closed at $15.91, marking a +0.63% move from the previous day. This move lagged the S&P 500's daily gain of 1.76%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 3.03%.

Coming into today, shares of the oil company had lost 18.51% in the past month. In that same time, the Oils-Energy sector lost 12.2%, while the S&P 500 lost 5.94%.

Wall Street will be looking for positivity from Cenovus Energy as it approaches its next earnings report date. This is expected to be April 26, 2023. The company is expected to report EPS of $0.26, down 58.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.82 billion, down 37.8% from the prior-year quarter.

CVE's full-year Zacks Consensus Estimates are calling for earnings of $2.04 per share and revenue of $36.09 billion. These results would represent year-over-year changes of -17.07% and -31.85%, respectively.

It is also important to note the recent changes to analyst estimates for Cenovus 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.1% lower. Cenovus Energy currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Cenovus Energy is currently trading at a Forward P/E ratio of 7.77. Its industry sports an average Forward P/E of 7.78, 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 105, putting it in the top 42% 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.

To follow CVE in the coming trading sessions, be sure to utilize Zacks.com.


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