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Civitas Resources (CIVI) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Civitas Resources (CIVI - Free Report) closed the most recent trading day at $73.73, moving -1.22% from the previous trading session. This change lagged the S&P 500's 0.63% loss on the day. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.63%.

The oil and gas company's stock has dropped by 11.41% in the past month, falling short of the Oils-Energy sector's loss of 1.37% and the S&P 500's loss of 2.35%.

The upcoming earnings release of Civitas Resources will be of great interest to investors. On that day, Civitas Resources is projected to report earnings of $2.35 per share, which would represent a year-over-year decline of 33.99%. Alongside, our most recent consensus estimate is anticipating revenue of $989.44 million, indicating a 1.84% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.50 per share and revenue of $3.53 billion, indicating changes of -27.92% and -6.87%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Civitas Resources. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Civitas Resources is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Civitas Resources is currently exchanging hands at a Forward P/E ratio of 7.85. Its industry sports an average Forward P/E of 9.72, so one might conclude that Civitas Resources is trading at a discount comparatively.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 6% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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