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

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In the latest trading session, Cenovus Energy (CVE - Free Report) closed at $17.04, marking a +0.29% move from the previous day. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.

Coming into today, shares of the oil company had gained 6.72% in the past month. In that same time, the Oils-Energy sector gained 1.56%, while the S&P 500 gained 4.14%.

Wall Street will be looking for positivity from Cenovus Energy as it approaches its next earnings report date. The company is expected to report EPS of $0.52, down 44.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $10.12 billion, down 32.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.91 per share and revenue of $40.43 billion, which would represent changes of -22.36% and -23.64%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Cenovus Energy. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 2.14% higher. Cenovus Energy is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Cenovus Energy is holding a Forward P/E ratio of 8.92. This represents a premium compared to its industry's average Forward P/E of 8.67.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 122, putting it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow CVE in the coming trading sessions, be sure to utilize Zacks.com.


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