Back to top

Image: Bigstock

Why Civitas Resources (CIVI) Dipped More Than Broader Market Today

Read MoreHide Full Article

Civitas Resources (CIVI - Free Report) closed at $69.68 in the latest trading session, marking a -1.79% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.12%.

The the stock of oil and gas company has fallen by 15.18% in the past month, lagging the Oils-Energy sector's loss of 5.06% and the S&P 500's loss of 5.53%.

The investment community will be closely monitoring the performance of Civitas Resources in its forthcoming earnings report. On that day, Civitas Resources is projected to report earnings of $2.30 per share, which would represent a year-over-year decline of 35.39%. At the same time, our most recent consensus estimate is projecting a revenue of $972.02 million, reflecting a 3.56% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $9.51 per share and a revenue of $3.5 billion, demonstrating changes of -27.85% and -7.73%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Civitas Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained steady. As of now, Civitas Resources holds a Zacks Rank of #2 (Buy).

With respect to valuation, Civitas Resources is currently being traded at a Forward P/E ratio of 7.46. This expresses a discount compared to the average Forward P/E of 8.75 of its industry.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.

The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Civitas Resources, Inc. (CIVI) - free report >>

Published in