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CVR Energy (CVI) Gains As Market Dips: What You Should Know

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In the latest trading session, CVR Energy (CVI - Free Report) closed at $29.90, marking a +0.4% move from the previous day. This change outpaced the S&P 500's 0.79% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.

Prior to today's trading, shares of the diversified holding company had gained 7.66% over the past month. This has outpaced the Oils-Energy sector's gain of 1.6% and the S&P 500's gain of 4.16% in that time.

CVR Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect CVR Energy to post earnings of $0.95 per share. This would mark a year-over-year decline of 61.22%. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, down 31.22% from the prior-year quarter.

CVI's full-year Zacks Consensus Estimates are calling for earnings of $3.70 per share and revenue of $9.15 billion. These results would represent year-over-year changes of -38.74% and -16.02%, respectively.

Investors should also note any recent changes to analyst estimates for CVR Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 6.33% lower within the past month. CVR Energy currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, CVR Energy is holding a Forward P/E ratio of 8.05. This represents a premium compared to its industry's average Forward P/E of 6.64.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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


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