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

Cenovus Energy (CVE) ended the recent trading session at $24.79, demonstrating a -1.08% change from the preceding day's closing price. This change lagged the S&P 500's 1.15% gain on the day. Elsewhere, the Dow gained 1.38%, while the tech-heavy Nasdaq added 1.38%.

Coming into today, shares of the oil company had gained 11.03% in the past month. In that same time, the Oils-Energy sector gained 8.53%, while the S&P 500 lost 5.69%.

Market participants will be closely following the financial results of Cenovus Energy in its upcoming release. The company's upcoming EPS is projected at $0.22, signifying a 31.25% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.71 billion, down 6.02% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.13 per share and revenue of $33.63 billion, indicating changes of -26.62% and -5.4%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Cenovus Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.82% lower. Cenovus Energy currently has a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Cenovus Energy is at present trading with a Forward P/E ratio of 22.11. This indicates a discount in contrast to its industry's Forward P/E of 22.23.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 216, placing it within the bottom 12% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Cenovus Energy Inc (CVE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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