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Cenovus Energy (CVE) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Cenovus Energy (CVE - Free Report) ended the recent trading session at $19.06, demonstrating a -0.31% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.09%.

The the stock of oil company has fallen by 7.86% in the past month, lagging the Oils-Energy sector's loss of 2.35% and the S&P 500's gain of 4.59%.

Analysts and investors alike will be keeping a close eye on the performance of Cenovus Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.58, reflecting a 75.76% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.94 billion, indicating a 9.2% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.05 per share and revenue of $37.2 billion, which would represent changes of +30.57% and -3.84%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Cenovus Energy. Recent revisions tend to reflect the latest 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. Over the past month, the Zacks Consensus EPS estimate has shifted 6.41% upward. As of now, Cenovus Energy holds a Zacks Rank of #3 (Hold).

Investors should also note Cenovus Energy's current valuation metrics, including its Forward P/E ratio of 9.34. For comparison, its industry has an average Forward P/E of 10.53, which means Cenovus Energy is trading at a discount to the group.

The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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