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

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Coterra Energy (CTRA - Free Report) closed the most recent trading day at $25.52, moving +0.2% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.39%.

Heading into today, shares of the independent oil and gas company had gained 1.03% over the past month, outpacing the Oils-Energy sector's gain of 0.76% and lagging the S&P 500's gain of 3.16% in that time.

Coterra Energy will be looking to display strength as it nears its next earnings release, which is expected to be August 7, 2023. The company is expected to report EPS of $0.45, down 66.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, down 48.02% from the year-ago period.

CTRA's full-year Zacks Consensus Estimates are calling for earnings of $2.48 per share and revenue of $6.12 billion. These results would represent year-over-year changes of -49.8% and -32.4%, respectively.

Investors should also note any recent changes to analyst estimates for Coterra Energy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.3% lower. Coterra Energy currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Coterra Energy is currently trading at a Forward P/E ratio of 10.28. Its industry sports an average Forward P/E of 7.68, so we one might conclude that Coterra Energy is trading at a premium comparatively.

It is also worth noting that CTRA currently has a PEG ratio of 0.19. 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 - United States industry currently had an average PEG ratio of 0.37 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 222, putting 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.

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


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