Latest news with #CoterraEnergy
Yahoo
20 hours ago
- Business
- Yahoo
Do Wall Street Analysts Like Coterra Energy Stock?
Houston-based Coterra Energy Inc. (CTRA) is a diversified energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. With a market cap of $18.5 billion, Coterra operates in key regions like the Permian Basin, Marcellus Shale, and Anadarko Basin, showcasing its strong presence in the energy sector. The energy major has notably underperformed the broader market over the past year. CTRA stock has dropped 4.9% on a YTD basis and 5.5% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 8.2% surge in 2025 and 17% gains over the past year. More News from Barchart Morgan Stanley Says Nvidia Has 'Exceptional' Strength. Should You Buy NVDA Stock Here? This Dividend Stock Yields 4.5% But Is Down 21% in 2025: Time to Buy? Dear MicroStrategy Stock Fans, Mark Your Calendars for July 31 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Looking closer, Coterra has also lagged behind the Energy Select Sector SPDR Fund's (XLE) 2.4% uptick in 2025 but matched XLE's 5.5% drop over the past 52 weeks. Coterra Energy's stock prices plunged 9.3% in the trading session after the release of its Q1 results on May 5. Driven by a notable growth in oil and natural gas revenues, its overall topline for the quarter surged 32.9% year-over-year to $1.9 billion. However, this figure missed the consensus estimates by a notable margin. Furthermore, due to macroeconomic uncertainty and oil price headwinds, Coterra lowered its Permian investment guidance from its previous outlook, unsettling investor confidence. On a positive note, Coterra delivered a 58.7% growth in adjusted net income to $608 million, exceeding Street expectations. For the full fiscal 2025, ending in December, analysts expect CTRA to deliver an adjusted EPS of $2.47, marking a 53.4% growth year-over-year. The company has a mixed earnings surprise history. While it has surpassed the Street's bottom-line estimates twice over the past four quarters, it has missed the projections on two other occasions. The stock maintains a consensus 'Strong Buy' rating overall. Of the 23 analysts covering the stock, opinions include 16 'Strong Buys,' two 'Moderate Buys,' and five 'Holds.' This configuration is slightly less bullish than a month ago, when 17 analysts gave 'Strong Buy' recommendations. On Jul. 17, Piper Sandler analyst Mark Lear reiterated an 'Overweight' rating on CTRA, while setting a price target of $37. CTRA's mean price target of $33.39 suggests a 37.5% upside from current price levels, while the Street high target of $38 represents a staggering 56.4% premium. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
4 days ago
- Business
- Yahoo
Coterra Energy (CTRA) Reports Next Week: Wall Street Expects Earnings Growth
The market expects Coterra Energy (CTRA) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This independent oil and gas company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +16.2%. Revenues are expected to be $1.7 billion, up 33.4% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 3.21% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Cabot? For Cabot, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Cabot will beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Cabot would post earnings of $0.78 per share when it actually produced earnings of $0.80, delivering a surprise of +2.56%. Over the last four quarters, the company has beaten consensus EPS estimates two times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Cabot doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. An Industry Player's Expected Results Another stock from the Zacks Oil and Gas - Exploration and Production - United States industry, Antero Resources (AR), is soon expected to post earnings of $0.48 per share for the quarter ended June 2025. This estimate indicates a year-over-year change of +352.6%. Revenues for the quarter are expected to be $1.29 billion, up 31.6% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Antero Resources has been revised 22.8% down to the current level. Nevertheless, the company now has an Earnings ESP of 0%, reflecting an equal Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Antero Resources will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Coterra Energy Inc. (CTRA) : Free Stock Analysis Report Antero Resources Corporation (AR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
7 days ago
- Business
- Forbes
What's Happening With EQT Stock?
Photo byEQT Corp (NYSE: EQT) has re-entered the limelight—but not in the manner investors desired. Shares of the most significant natural gas producer in the U.S. plummeted nearly 12% over the past five days, significantly trailing the broader energy sector. The primary reason? A 7% decrease in natural gas futures, driven by predictions of cooler-than-anticipated weather, high storage levels, and consistent production strength. Although EQT's Q2 2025 earnings exceeded expectations on EPS, the company fell short on revenue, and pipeline bottlenecks along with limited hedging left it vulnerable to price fluctuations—reducing the upside from $340 million in free cash flow. Natural gas producers such as EQT are extremely responsive to commodity fluctuations, and when prices drop, their stock prices often decline rapidly. EQT's decrease was one of the steepest in the sector. Competitors like Coterra Energy (NYSE: CTRA) and Expand Energy (NASDAQ: EXE) fell by 3% and 9%, respectively, but EQT's exposure to spot prices and pipeline limitations exacerbated the selloff. Nonetheless, if you seek upside with a smoother journey than investing in individual stocks, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since its inception. What Caused the Decline? A Perfect Storm for Natural Gas Three major factors contributed to the steep drop in natural gas prices. Firstly, record-breaking U.S. production coupled with larger-than-anticipated storage injections indicated a growing supply surplus. Secondly, predictions of milder-than-usual weather diminished expectations for power-sector demand. Thirdly, reduced global LNG demand—especially from Asia and Europe—resulted in more gas being confined to the domestic market. This mixture of oversupply, weakening demand, and negative sentiment in the futures market created a perfect storm, leading to lower prices and dragging EQT stock down alongside them. Valuation: EQT Appears Expensive Its price-to-sales ratio is at 4.2x, higher than the S&P 500's 3.1x, while its price-to-free cash flow stands at 26.8x compared to the index's 20.9x. Additionally, EQT's price-to-earnings ratio is 27.4x, in contrast to the 26.9x for the wider market. These heightened multiples indicate that the stock is priced at a premium—an increasingly difficult proposition given the increased volatility in natural gas prices and the cyclical characteristics of the energy sector. Growth: A Positive Aspect, but Risks Persist EQT's strongest argument resides in its growth trajectory. The firm has demonstrated notable top-line expansion, with average revenue growth of 6.4% over the last three years, surpassing the S&P 500's 5.5%. Over the past year, revenue skyrocketed 39.6%, increasing from $4.5 billion to $6.3 billion. Most impressively, quarterly revenue surged 170% year-over-year, jumping from $952 million to $2.6 billion. These achievements are hard to ignore—but they bring up the question of sustainability if natural gas prices remain low. On the profitability side, EQT presents a mixed picture. Its operating margin of 21.6% is strong, and its operating cash flow margin of 53.9% significantly exceeds the S&P 500 average of 14.9%, underscoring the robustness of its core operations. However, the net income margin is only 5.8%, considerably lower than the S&P's 11.6%, reflecting the burden from high depreciation, hedging costs, and other non-cash expenses. The company's balance sheet reveals some concerning signals. EQT carries $8.3 billion in debt against a $34 billion market capitalization, resulting in a moderate debt-to-equity ratio of 24.4%, which is above the S&P 500's 19.4%. More worryingly, the company's liquidity is limited—holding only $555 million in cash on $40 billion in total assets, leading to a weak cash-to-assets ratio of 1.4%. That kind of thin cash reserve could present challenges during a downturn or if gas prices continue to face pressure. How Resistant Is EQT in a Crisis? EQT has historically lagged during market downturns, frequently declining more sharply and recovering more slowly than the wider market. It dropped 43% during the 2022 inflation shock (compared to 25.4% for the S&P 500), 54.5% in the 2020 COVID crash (versus 33.9%), and 69.5% in the 2008 financial crisis (against 56.8%), taking almost five years to recover from the latter. This pattern underscores EQT's susceptibility during periods of market stress. A Smarter Strategy for Engaging with the Market EQT showcases impressive growth and cash flow, but its weak balance sheet, mediocre profitability, and subpar performance in downturns raise concerns. Given its premium valuation and susceptibility to gas prices, the stock carries considerable downside risk despite its potential for upside. Investing in a single stock can be hazardous. You may want to consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver strong returns for investors. How is this possible? The quarterly rebalanced mixture of large-, mid- and small-cap RV Portfolio stocks offered an adaptive approach to maximize opportunities during favorable market conditions while mitigating losses when markets decline, as outlined in RV Portfolio performance metrics.
Yahoo
22-07-2025
- Business
- Yahoo
What to Expect From Coterra Energy's Q2 2025 Earnings Report
Valued at a market cap of $18.6 billion, Coterra Energy Inc. (CTRA) is an independent oil and gas company headquartered in Houston, Texas. It explores, develops, and produces oil, natural gas, and natural gas liquids. The company is expected to announce its fiscal Q2 earnings for 2025 after the market closes on Monday, Aug. 4. Ahead of this event, analysts expect this energy company to report a profit of $0.42 per share, up 20% from $0.35 per share in the year-ago quarter. The company has topped Wall Street's earnings estimates in two of the last four quarters, while missing on two other occasions. In Q1, CTRA's EPS of $0.78 outpaced the forecasted figure by 2.6%. More News from Barchart Nat-Gas Prices Sink on the Outlook for Cooler US Temps and Higher Gas Production Crude Oil Prices Pressured by Concerns of Oversupply Crude Oil Prices Slip on Concerns of a Mounting Global Oil Supply Glut Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2025, analysts expect Coterra Energy to report a profit of $2.49 per share, up 54.7% from $1.61 per share in fiscal 2024. Furthermore, its EPS is expected to grow 18.1% year-over-year to $2.94 in fiscal 2026. CTRA has declined 13.8% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 14.5% uptick and the Energy Select Sector SPDR Fund's (XLE) 7.9% drop over the same time frame. On May 5, Coterra Energy released mixed Q1 results, and its shares plunged 9.3% in the following trading session. The company's revenue grew 32.9% year-over-year to $1.9 billion, but missed the consensus estimates by 2.1%. Additionally, CTRA lowered its fiscal 2025 capital budget range to $2 billion to $2.3 billion, driven by less oil-directed activity, which might have further dampened investor confidence. However, on the brighter side, its adjusted EPS of $0.80 improved 56.9% from the prior-year quarter, topping Wall Street estimates by 2.6%. Wall Street analysts are highly optimistic about CTRA's stock, with an overall "Strong Buy" rating. Among 23 analysts covering the stock, 16 recommend "Strong Buy," two indicate "Moderate Buy,' and five suggest "Hold.' The mean price target for CTRA is $33.39, implying a 44.6% potential upside from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
22-07-2025
- Business
- Business Insider
TD Cowen Sticks to Their Buy Rating for Coterra Energy (CTRA)
In a report released yesterday, David Deckelbaum from TD Cowen maintained a Buy rating on Coterra Energy, with a price target of $33.00. The company's shares closed yesterday at $23.09. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Deckelbaum is a 4-star analyst with an average return of 5.5% and a 43.43% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as California Resources Corp, APA, and Coterra Energy. Coterra Energy has an analyst consensus of Strong Buy, with a price target consensus of $33.57, implying a 45.39% upside from current levels. In a report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $32.00 price target. CTRA market cap is currently $18.62B and has a P/E ratio of 14.24. Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CTRA in relation to earlier this year. Most recently, in May 2025, Stephen Bell, the EVP – Business Development of CTRA sold 100,000.00 shares for a total of $2,525,000.00.
