This story originally appeared on Zacks

Ovintiv (OVV) closed the most recent trading day at $32.45, moving -0.06% from the previous trading session. This change lagged the S&P 500’s 0.62% gain on the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.

Coming into today, shares of the energy company had lost 15.97% in the past month. In that same time, the Oils-Energy sector lost 0.1%, while the S&P 500 gained 0.39%.

Ovintiv will be looking to display strength as it nears 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.60 per share and revenue of $7.67 billion. These totals would mark changes of +1500% and +26.01%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Ovintiv. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.01% higher. Ovintiv is currently a Zacks Rank #3 (Hold).

Investors should also note Ovintiv’s current valuation metrics, including its Forward P/E ratio of 5.79. For comparison, its industry has an average Forward P/E of 5.79, which means Ovintiv is trading at a no noticeable deviation to the group.

The Oil and Gas – Exploration and Production – Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Ovintiv Inc. (OVV): Free Stock Analysis Report
 
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