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Ovintiv (OVV) Gains But Lags Market: What You Should Know

Ovintiv (OVV) closed at $49.74 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.

Heading into today, shares of the energy company had 0% over the past month, outpacing the Oils-Energy sector's loss of 0.21% and the S&P 500's loss of 9.94% in that time.

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 $2.61 per share, which would represent year-over-year growth of 74%. Meanwhile, our latest consensus estimate is calling for revenue of $2.61 billion, up 45.89% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.48 per share and revenue of $10.8 billion, which would represent changes of +93.47% and +24.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Ovintiv. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.44% lower. Ovintiv is currently a Zacks Rank #3 (Hold).

Digging into valuation, Ovintiv currently has a Forward P/E ratio of 5.23. Its industry sports an average Forward P/E of 5.23, so we one might conclude that Ovintiv is trading at a no noticeable deviation comparatively.

Meanwhile, OVV's PEG ratio is currently 0.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - Canadian was holding an average PEG ratio of 0.31 at yesterday's closing price.

The Oil and Gas - Exploration and Production - Canadian industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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