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

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Coterra Energy (CTRA - Free Report) ended the recent trading session at $28.29, demonstrating a +0.6% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.27%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.88%.

The independent oil and gas company's shares have seen an increase of 0.54% over the last month, surpassing the Oils-Energy sector's loss of 3.25% and falling behind the S&P 500's gain of 2.85%.

Investors will be eagerly watching for the performance of Coterra Energy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.42, marking a 7.69% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.36 billion, up 15.05% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.02 per share and a revenue of $5.84 billion, signifying shifts of -10.62% and -1.17%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Coterra Energy. 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 shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.22% increase. Coterra Energy is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Coterra Energy is holding a Forward P/E ratio of 13.94. Its industry sports an average Forward P/E of 10.02, so one might conclude that Coterra Energy is trading at a premium comparatively.

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 92, which puts it in the top 37% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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