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Coterra Energy (CTRA) Dips More Than Broader Markets: What You Should Know

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Coterra Energy (CTRA - Free Report) closed at $27.05 in the latest trading session, marking a -1.74% move from the prior day. This change lagged the S&P 500's daily loss of 0.27%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the independent oil and gas company had lost 2.34% over the past month. This has lagged the Oils-Energy sector's gain of 4.61% and was narrower than the S&P 500's loss of 2.86% in that time.

Investors will be hoping for strength from Coterra Energy as it approaches its next earnings release. The company is expected to report EPS of $0.45, down 68.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.38 billion, down 45.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.30 per share and revenue of $5.87 billion. These totals would mark changes of -53.44% and -35.19%, respectively, from last year.

Any recent changes to analyst estimates for Coterra Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Coterra Energy is currently a Zacks Rank #3 (Hold).

In terms of valuation, Coterra Energy is currently trading at a Forward P/E ratio of 11.96. This valuation marks a premium compared to its industry's average Forward P/E of 9.86.

We can also see that CTRA currently has a PEG ratio of 0.22. 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 0.5 as of yesterday's close.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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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