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Encana (OVV) Gains But Lags Market: What You Should Know

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Encana (OVV) closed the most recent trading day at $16.43, moving +0.37% from the previous trading session. This move lagged the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.9%.

Coming into today, shares of the energy company had lost 22.78% in the past month. In that same time, the Oils-Energy sector lost 8.97%, while the S&P 500 gained 2.97%.

OVV will be looking to display strength as it nears its next earnings release, which is expected to be February 19, 2020. On that day, OVV is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 49.38%. Meanwhile, our latest consensus estimate is calling for revenue of $1.89 billion, down 20.71% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for OVV. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has moved 1.25% lower. OVV is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, OVV is holding a Forward P/E ratio of 5.88. For comparison, its industry has an average Forward P/E of 9.39, which means OVV is trading at a discount to the group.

Investors should also note that OVV has a PEG ratio of 0.59 right now. 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 - Canadian stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.

The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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.

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