Back to top

Image: Bigstock

Coterra Energy (CTRA) Ascends While Market Falls: Some Facts to Note

Read MoreHide Full Article

In the latest close session, Coterra Energy (CTRA - Free Report) was up +1.37% at $26.56. This change outpaced the S&P 500's 0.14% loss on the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.24%.

Heading into today, shares of the independent oil and gas company had lost 2.78% over the past month, lagging the Oils-Energy sector's loss of 1.02% and the S&P 500's gain of 0.94%.

The upcoming earnings release of Coterra Energy will be of great interest to investors. In that report, analysts expect Coterra Energy to post earnings of $0.59 per share. This would mark year-over-year growth of 20.41%. In the meantime, our current consensus estimate forecasts the revenue to be $1.88 billion, indicating a 34.74% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.24 per share and revenue of $7.51 billion. These totals would mark changes of +33.33% and +37.59%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Coterra Energy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% decrease. Coterra Energy currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Coterra Energy has a Forward P/E ratio of 11.68 right now. This represents a premium compared to its industry average Forward P/E of 10.31.

Also, we should mention that CTRA has a PEG ratio of 0.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 2.74 based on yesterday's closing prices.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 27% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


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


Coterra Energy Inc. (CTRA) - free report >>

Published in