Houston, Texas-based Coterra Energy Inc. (CTRA) is an independent oil and gas company that develops, explores, and produces oil, natural gas, and natural gas liquids. Valued at $18.1 billion by market cap, the company develops oil and natural gas with a focus on protecting and preserving air quality, water resources, and the land on which it operates.
Shares of this diversified energy company have considerably underperformed the broader market over the past year. CTRA has declined 8.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.8%. In 2024, CTRA stock is down 3.7%, compared to the SPX’s 25.7% rise on a YTD basis.
Narrowing the focus, CTRA’s underperformance looks less pronounced compared to the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). The exchange-traded fund has gained about 2.5% over the past year. Moreover, the ETF’s 2.3% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Oct. 31, CTRA shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $0.32 missed Wall Street expectations of $0.34. The company’s revenue was $1.4 billion, topping Wall Street forecasts of $1.3 billion.
For the current fiscal year, ending in December, analysts expect CTRA’s EPS to decline 29.7% to $1.54 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 23 analysts covering CTRA stock, the consensus is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration is more bullish than three months ago, with 17 analysts suggesting a “Strong Buy.”
On Nov. 4, Piper Sandler Companies (PIPR) kept an “Overweight” rating and raised the price target on CTRA to $32, implying a potential upside of 30.2% from current levels.
The mean price target of $30.54 represents a 24.2% premium to CTRA’s current price levels. The Street-high price target of $37 suggests an ambitious upside potential of 50.5%.
On the date of publication, Neha Panjwani 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. For more information please view the Barchart Disclosure Policy here.
