Back to top

Image: Bigstock

Cenovus Energy (CVE) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Cenovus Energy (CVE - Free Report) closed at $20.82 in the latest trading session, marking a +1.12% move from the prior day. This change outpaced the S&P 500's 0.8% gain on the day. At the same time, the Dow added 1.51%, and the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the oil company had gained 0.1% over the past month. This has outpaced the Oils-Energy sector's loss of 0.72% and lagged the S&P 500's gain of 4.14% in that time.

Market participants will be closely following the financial results of Cenovus Energy in its upcoming release. The company's upcoming EPS is projected at $0.58, signifying a 75.76% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $9.94 billion, indicating a 9.2% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.05 per share and a revenue of $37.2 billion, demonstrating changes of +30.57% and -3.84%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Cenovus Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.06% higher. At present, Cenovus Energy boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Cenovus Energy has a Forward P/E ratio of 10.06 right now. This denotes a discount relative to the industry's average Forward P/E of 11.06.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% 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

See More Zacks Research for These Tickers

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

Cenovus Energy Inc (CVE) - free report >>

Published in