Ovintiv (OVV) Stock Sinks As Market Gains: What You Should Know

Ovintiv (OVV) closed at $32.45 in the latest trading session, marking a -0.06% move from the prior day. This change lagged the S&P 500's 0.62% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Heading into today, shares of the energy company had lost 16.02% over the past month, lagging the Oils-Energy sector's loss of 2.1% and the S&P 500's gain of 0.87% in that time.

Investors will be hoping for strength from Ovintiv as it approaches its next earnings release. In that report, analysts expect Ovintiv to post earnings of $1.83 per share. This would mark year-over-year growth of 161.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.19 billion, up 43.38% from the year-ago period.

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.

Any recent changes to analyst estimates for Ovintiv should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 3.01% higher. Ovintiv currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Ovintiv currently has a Forward P/E ratio of 5.79. Its industry sports an average Forward P/E of 5.79, so we one might conclude that Ovintiv is trading at a no noticeable deviation comparatively.

The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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.

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