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Coterra Energy (CTRA) Laps the Stock Market: Here's Why

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In the latest market close, Coterra Energy (CTRA - Free Report) reached $24.32, with a +0.54% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.37%, and the Nasdaq, a tech-heavy index, added 0.07%.

The independent oil and gas company's shares have seen a decrease of 5.32% over the last month, not keeping up with the Oils-Energy sector's loss of 2.01% and the S&P 500's gain of 5.3%.

The upcoming earnings release of Coterra Energy will be of great interest to investors. The company's earnings report is expected on February 22, 2024. On that day, Coterra Energy is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 51.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.54 billion, down 32.3% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Coterra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.66% lower. Coterra Energy is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Coterra Energy's current valuation metrics, including its Forward P/E ratio of 10.72. This expresses a premium compared to the average Forward P/E of 7.97 of its industry.

We can additionally observe that CTRA currently boasts a PEG ratio of 0.19. 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. As of the close of trade yesterday, the Oil and Gas - Exploration and Production - United States industry held an average PEG ratio of 0.65.

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 246, which puts it in the bottom 3% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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