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Coterra Energy (CTRA) Gains As Market Dips: What You Should Know

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Coterra Energy (CTRA - Free Report) closed at $24.55 in the latest trading session, marking a +1.53% move from the prior day. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow experienced a drop of 0.27%, and the technology-dominated Nasdaq saw a decrease of 0.07%.

Shares of the independent oil and gas company have appreciated by 4.04% over the course of the past month, outperforming the Oils-Energy sector's gain of 2.71%, and the S&P 500's gain of 2.71%.

Analysts and investors alike will be keeping a close eye on the performance of Coterra Energy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.52, marking a 62.5% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.82 billion, reflecting a 34.22% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.51 per share and a revenue of $7.6 billion, indicating changes of +49.4% and +39.31%, respectively, from the former year.

Any recent changes to analyst estimates for Coterra Energy should also be noted by investors. 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 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.96% lower. Coterra Energy is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Coterra Energy is presently trading at a Forward P/E ratio of 9.62. This valuation marks a discount compared to its industry average Forward P/E of 10.35.

One should further note that CTRA currently holds a PEG ratio of 0.32. 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. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.76 as of yesterday's close.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 179, finds itself in the bottom 28% echelons 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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