Canadian Natural Resources (CNQ) Soars 2.80% on Earnings Beat, Upgrade

Canadian Natural Resources (CNQ) surged 2.80% intraday, marking its sixth consecutive day of gains and reaching its highest level since January 2025, with a cumulative increase of 15.07% over the past six days.

The strategy of buying CNQ shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The backtest showed a 9.16% annual return, slightly underperforming the benchmark's 13.81% annual return. With a 66.88% success rate in positive months and a maximum drawdown of only 23.55%, the strategy demonstrated resilience and stability, making it suitable for a long-term, low-risk investment approach.

Canadian Natural Resources' stock price has been on an upward trajectory, driven by several key factors. The company's Q1 earnings and revenues exceeded market expectations, largely due to higher realized prices and increased product sales. This strong financial performance has bolstered investor confidence and contributed to the stock's recent gains.

Additionally, Scotiabank upgraded Canadian Natural Resources from a "sector perform" rating to a "sector outperform" rating. Such upgrades by financial institutions often lead to a positive shift in investor sentiment, further driving the stock price higher.

During the Q1 2025 earnings call, Canadian Natural Resources reported significant production growth. This growth has led analysts to believe that the stock is undervalued based on its Fair Value analysis, potentially attracting more investors and pushing the stock price even higher.