Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Ovintiv (OVV - Free Report) closed at $50.37, marking a +1.1% move from the previous day. This change lagged the S&P 500's 2.65% gain on the day. Meanwhile, the Dow gained 1.86%, and the Nasdaq, a tech-heavy index, added 0.24%.

Prior to today's trading, shares of the energy company had gained 0.54% over the past month. This has outpaced the Oils-Energy sector's loss of 4.88% and the S&P 500's loss of 8.99% in that time.

Investors will be hoping for strength from Ovintiv as it approaches its next earnings release, which is expected to be November 8, 2022. On that day, Ovintiv is projected to report earnings of $2.26 per share, which would represent year-over-year growth of 50.67%. Meanwhile, our latest consensus estimate is calling for revenue of $2.54 billion, up 42.02% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.97 per share and revenue of $10.66 billion. These totals would mark changes of +83.06% and +23.11%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Ovintiv. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.17% lower. Ovintiv is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Ovintiv is holding a Forward P/E ratio of 5.56. Its industry sports an average Forward P/E of 5.35, so we one might conclude that Ovintiv is trading at a premium comparatively.

Also, we should mention that OVV has a PEG ratio of 0.11. 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 - Canadian was holding an average PEG ratio of 0.39 at yesterday's closing price.

The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 40% 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.


See More Zacks Research for These Tickers


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


Ovintiv Inc. (OVV) - free report >>

Published in