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Coterra Energy (CTRA) Stock Sinks As Market Gains: What You Should Know

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Coterra Energy (CTRA - Free Report) closed the latest trading day at $24.38, indicating a -0.93% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 1.7%.

Shares of the independent oil and gas company have depreciated by 4.39% over the course of the past month, outperforming the Oils-Energy sector's loss of 4.69% and lagging the S&P 500's gain of 0.94%.

The investment community will be closely monitoring the performance of Coterra Energy in its forthcoming earnings report. The company is expected to report EPS of $0.57, down 50.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.57 billion, down 31.14% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Coterra Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 9.16% lower within the past month. Coterra Energy is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Coterra Energy is presently trading at a Forward P/E ratio of 9.79. This signifies a premium in comparison to the average Forward P/E of 7.37 for its industry.

Meanwhile, CTRA's PEG ratio is currently 0.18. 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. As the market closed yesterday, the Oil and Gas - Exploration and Production - United States industry was having an average PEG ratio of 0.59.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 244, positioning it in the bottom 4% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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