Is Now A Good Time To Invest In Cenovus Energy Inc (NYSE: CVE)?

Cenovus Energy Inc (NYSE:CVE) shares, rose in value, with the stock price up by 1.28% to the previous day’s close as strong demand from buyers drove the stock to $21.38.

Actively observing the price movement in the last trading, the stock closed the session at $21.11. The value of beta (5-year monthly) was 2.79 whereas the PE ratio was 13.55 over 12-month period. Referring to stock’s 52-week performance, its high was $21.37, and the low was $14.69. On the whole, CVE has fluctuated by 19.71% over the past month.

With the market capitalization of Cenovus Energy Inc currently standing at about $40.02 billion, investors are eagerly awaiting this quarter’s results, scheduled for Apr 24, 2024 – Apr 29, 2024. The company’s Forward Dividend Ratio is 0.42, with its dividend yield at 1.95%. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $0.34, which is expected to increase to $0.47 for fiscal year $1.89 and then to about $2.24 by fiscal year 2025. Data indicates that the EPS growth is expected to be 20.40% in 2025, while the next year’s EPS growth is forecast to be 18.50%.

Analysts have estimated the company’s revenue for the quarter at $10.24 billion, with a low estimate of $9.85 billion and a high estimate of $10.64 billion. According to the average forecast, sales growth in current quarter could jump up 10.00%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2025, the company’s y-o-y revenues would reach $39.71 billion, representing an increase of 2.90% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that CVE’s technical picture suggests that short-term indicators denote the stock is a 100% Buy on average. However, medium term indicators have put the stock in the category of Hold while long term indicators on average have been pointing out that it is a 50% Buy.

The stock’s technical analysis shows that the PEG ratio is about 0.56, with the price of CVE currently trading nearly 11.04% and 20.44% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 88.25, while the 7-day volatility ratio is showing 2.10% which for the 30-day chart, stands at 1.91%. Furthermore, Cenovus Energy Inc (CVE)’s beta value is 2.13, and its average true range (ATR) is 0.40.

A comparison of Cenovus Energy Inc (CVE) with its peers suggests the former has fared considerably weaker in the market. CVE showed an intraday change of 1.28% in last session, and over the past year, it grew by 14.76%%.

Data on historical trading for Cenovus Energy Inc (NYSE:CVE) indicates that the trading volumes over the past 10 days have averaged 9.08 million and over the past 3 months, they’ve averaged 11.70 million. According to company’s latest data on outstanding shares, there are 1.87 billion shares outstanding.

Nearly 29.51% of Cenovus Energy Inc’s shares belong to company insiders and institutional investors own 56.00% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 28.29 million shares as on Mar 15, 2024, resulting in a short ratio of 2.98. According to the data, the short interest in Cenovus Energy Inc (CVE) stood at 1.51% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 34.43 million. The stock has risen by 28.41% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the CVE stock heading into the next quarter.

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