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Ovintiv (OVV) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3-min read

Ovintiv (OVV) closed the most recent trading day at $33.36, moving -0.89% from the previous trading session. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.2%.

Coming into today, shares of the energy company had gained 2.87% in the past month. In that same time, the Oils-Energy sector gained 1.34%, while the S&P 500 gained 3.11%.

Wall Street will be looking for positivity from Ovintiv as it approaches its next earnings report date. On that day, Ovintiv is projected to report earnings of $1.83 per share, which would represent year-over-year growth of 161.43%. Meanwhile, our latest consensus estimate is calling for revenue of $1.99 billion, up 30.43% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.60 per share and revenue of $7.33 billion, which would represent changes of +1500% and +20.48%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Ovintiv. These recent revisions tend to reflect the evolving nature of short-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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 3.01% higher within the past month. Ovintiv is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Ovintiv currently has a Forward P/E ratio of 6.01. This represents a no noticeable deviation compared to its industry's average Forward P/E of 6.01.

The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 27% 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.

To follow OVV in the coming trading sessions, be sure to utilize Zacks.com.


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