Canadian Natural Resources (CNQ) Stock Sinks As Market Gains: What You Should Know
Canadian Natural Resources (CNQ) closed at $51.50 in the latest trading session, marking a -0.75% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the oil and natural gas company had lost 5.55% over the past month. This has lagged the Oils-Energy sector's loss of 5.47% and the S&P 500's loss of 1.21% in that time.
Wall Street will be looking for positivity from Canadian Natural Resources as it approaches its next earnings report date. On that day, Canadian Natural Resources is projected to report earnings of $1.50 per share, which would represent a year-over-year decline of 33.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.28 billion, down 13.62% from the year-ago period.
CNQ's full-year Zacks Consensus Estimates are calling for earnings of $6.12 per share and revenue of $26.01 billion. These results would represent year-over-year changes of -28.92% and -20.16%, respectively.
It is also important to note the recent changes to analyst estimates for Canadian Natural Resources. 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 4.85% lower. Canadian Natural Resources currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Canadian Natural Resources is currently trading at a Forward P/E ratio of 8.48. For comparison, its industry has an average Forward P/E of 5.74, which means Canadian Natural Resources is trading at a premium to the group.
Investors should also note that CNQ has a PEG ratio of 0.69 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - Canadian stocks are, on average, holding a PEG ratio of 0.44 based on yesterday's closing prices.
The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Canadian Natural Resources Limited (CNQ) : Free Stock Analysis Report
To read this article on Zacks.com click here.