CALGARY, Alberta, July 22, 2026 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE) will release its second-quarter 2026 results on Wednesday, July 29, 2026. The news release will provide consolidated second-quarter operating and financial information. The company’s financial statements will be available on Cenovus’s website, cenovus.com.
Analysts wishing to participate in the conference call are asked to register in advance.
To participate in the conference call, complete the online registration form before the call begins. Once registered, participants will receive a unique PIN to access the call by phone. You can either dial into the conference call using the unique PIN or select the “Call Me” option to receive an automated call.
A live audio webcast of the conference call will be available and will remain archived for approximately 30 days.
Cenovus Energy Inc.
Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is committed to maximizing value by developing its assets in a safe, responsible and cost-efficient manner, integrating sustainability considerations into its business plans. Cenovus common shares are listed on the Toronto and New York stock exchanges. For more information, visit cenovus.com.
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Cenovus contacts:
InvestorsMediaInvestor Relations general line
403-766-7711Media Relations general line
403-766-7751
Key Takeaways VLO offers stronger near-term upside, while CVE provides greater earnings resilience through integration.VLO benefits from complex Gulf Coast refineries, feedstock flexibility and firm refining margins.CVE targets more than 1 million BOE/d by 2028, but regulation and geopolitics cloud its outlook. Valero Energy Corporation (VLO - Free Report) and Cenovus Energy Inc. (CVE - Free Report) are two well-known names in the energy industry, operating in different segments. VLO is a leading firm in the downstream sector, with an extensive refining footprint. Notably, VLO operates a network of 14 refineries with approximately 3 million barrels per day of high-complexity throughput capacity and a combined Nelson Complexity Index of 11.5, indicating that it can process and refine a wide variety of feedstocks into higher-value products.
Cenovus Energy, on the other hand,is a Canada-based integrated energy company with exposure to both the upstream and downstream segments of the industry. The company’s upstream production is primarily focused on its Canadian oil sands assets, alongside conventional and offshore production, while its downstream infrastructure comprises refining assets in Canada and the United States.
Over the past year, VLO shares have rallied 116.7%, outperforming CVE’s 104.5% gain. Price performance alone does not fully indicate a stock’s attractiveness or strength, as it merely reflects investor sentiment across market cycles. Hence, it is necessary to assess the fundamentals and broader operating environment of both stocks before arriving at an investment decision.
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Valero Benefits From Strong Refining FundamentalsValero Energy stands out as a premier refining operator with an advantaged refining portfolio mainly concentrated along the U.S. Gulf Coast, enabling the company to benefit from feedstock sourcing flexibility, export infrastructure and exposure to global product markets.
Additionally, its complex refining system is capable of processing heavy sour grades into high-value refined products efficiently. Heavy sour crude has a higher sulfur content and typically trades at a discount to lighter crude grades because it is more difficult to refine. This provides cheaper feedstock for Valero’s refineries, thereby improving refining economics and supporting better margins. The flexibility of Valero’s refinery systems allows it to shift product yields between light products and distillates based on market signals to capture higher margins during volatile periods. This gives the refining player a competitive edge, as it can shift its production toward higher-margin products.
Moreover, renewed tensions between the United States and Iran have raised uncertainty regarding shipping traffic through the Strait of Hormuz, reigniting supply concerns. Notably, the supply disruptions have tightened refined-product markets at a time when global refining capacity remains constrained. These factors are expected to support refining fundamentals, keeping margins steady.
While geopolitical tensions in the Middle East may raise concerns regarding crude availability, VLO has stated that this is not a significant constraint because its refining network is heavily concentrated along the U.S. Gulf Coast and the Midcontinent.
Cenovus’ Integrated Business Model Supports Resilient GrowthCenovus Energy’s upstream production predominantly comes from its oil sands assets in Canada. Its oil sands assets are characterized by a low cost of production and a long reserve life. Following the acquisition of MEG Energy, the Christina Lake North expansion has emerged as one of Cenovus' most important growth assets, strengthening its long-term production outlook.
The company is pursuing several other growth projects, including Foster Creek optimization, Sunrise optimization and the West White Rose project, which are expected to contribute to its target of producing more than 1 million barrels of oil equivalent per day (BOE/d) by 2028.
While Canadian heavy crude is typically priced against the Western Canadian Select at a discount to the Western Texas Intermediate benchmark, Cenovus' integrated business model helps offset Canadian heavy oil price dislocations to some extent. Its access to pipeline capacity and midstream infrastructure, combined with reliable Canadian and U.S. refining operations, enables the company to process discounted heavy crude into higher-value refined products. This supports downstream margins and makes earnings less volatile.
Nevertheless, heightened geopolitical tensions in the Middle East have increased volatility in product prices, making future earnings more difficult to predict. Management cautioned that Canada's climate policies and regulatory framework have made the country less competitive for energy investments, discouraging new oil sands developments. While Cenovus continues to expand through brownfield developments and optimization projects, its long-term production growth will require a more competitive investment and regulatory environment.
Image Source: Cenovus Energy Inc.
Valuation SnapshotConsidering the valuation story, it has become evident that Valero Energy is currently trading at a premium compared with Cenovus Energy. This is reflected in the fact that VLO trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.68X, higher than CVE’s 7.07X.
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VLO vs CVE: Final VerdictVLO and CVX both have their own strengths. Valero offers greater near-term upside through strong refining margins and feedstock flexibility, while Cenovus combines low-cost oil sands production with an integrated business model that provides greater earnings resilience. However, the current geopolitical situation and Canada's regulatory environment may cloud the outlook for Cenovus.
Therefore, investors who wish to gain from VLO’s upside potential in the current environment may consider owning the stock, currently carrying a Zacks Rank #2 (Buy). CVE warrants a more cautious approach, carrying a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cenovus Energy (CVE - Free Report) closed the most recent trading day at $28.26, moving +1.11% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
The oil company's stock has climbed by 11.09% in the past month, exceeding the Oils-Energy sector's gain of 3.6% and the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Cenovus Energy in its upcoming earnings disclosure. In that report, analysts expect Cenovus Energy to post earnings of $1.11 per share. This would mark year-over-year growth of 236.36%. In the meantime, our current consensus estimate forecasts the revenue to be $9.57 billion, indicating a 7.44% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.02 per share and a revenue of $37.13 billion, indicating changes of +96.1% and +4.43%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cenovus Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 4.12% fall in the Zacks Consensus EPS estimate. Cenovus Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Cenovus Energy is presently being traded at a Forward P/E ratio of 9.24. Its industry sports an average Forward P/E of 11, so one might conclude that Cenovus Energy is trading at a discount comparatively.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 12% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
Investors in Cenovus Energy Inc. (CVE - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the July 17, 2026 $13 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Cenovus Energy shares, but what is the fundamental picture for the company? Currently, Cenovus Energy is a Zacks Rank #3 (Hold) in the Oil and Gas - Integrated – Canadian industry that ranks in the Top 13% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimates for the current quarter, while one has dropped the estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 94 cents per share to 95 cents in that period.
Given the way analysts feel about Cenovus Energy right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Key Takeaways Cenovus targets production above 1 million BOE/d by 2028 through multiple growth projects. Christina Lake North's redevelopment well program began ahead of schedule and should lift output this year.Cenovus' integrated assets and pipeline access help secure better pricing during market volatility. Cenovus Energy (CVE - Free Report) is an integrated energy company based in Canada, with its operations spanning the upstream and downstream segments. CVE’s upstream production is primarily supported by its oil sands assets, which are characterized by a low cost of production and a long reserve life. Following the acquisition of MEG Energy, Christina Lake North has emerged as one of Cenovus' most important growth assets, strengthening its long-term production outlook.
In its first quarter earnings call, CVE mentioned that the redevelopment well program at Christina Lake North started ahead of schedule and is expected to deliver a meaningful production increase throughout the rest of the year. Cenovus is also pursuing other key growth projects, including the Foster Creek optimization, Sunrise optimization and the West White Rose project, which are expected to contribute to its target of producing more than 1 million barrels of oil equivalent per day (BOE/d) by 2028. With multiple growth projects under development and a portfolio of long reserve-life assets, Cenovus is well positioned to deliver sustainable production growth and generate meaningful cash flows over the long term.
The company's upstream business also stands to benefit from the current strength in crude prices, driven by the escalating geopolitical tensions in the Middle East. Cenovus’ production mostly comprises heavy crude, which is typically priced against the Western Canadian Select (“WCS”) benchmark. While WCS usually trades at a discount to the West Texas Intermediate (WTI), the overall commodity price environment currently remains favorable for upstream players.
Moreover, CVE’s access to downstream infrastructure and pipeline capacity allows it to mitigate the risk of heavy crude price dislocations by gaining access to premium markets and realizing better pricing. The integrated nature of its business supports its profitability during volatile times.
Other Canadian Integrated Energy CompaniesSuncor Energy (SU - Free Report) is a leading Canadian integrated energy player whose operations include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining and product marketing. The company’s integrated business model, spanning upstream production and downstream refining, provides resilience across commodity cycles, supporting profitability and cash flow generation.
Imperial Oil Limited (IMO - Free Report) is another leading integrated energy company headquartered in Canada. IMO’s operations span across exploration and production, refining and a petrochemicals business. The company is a major Canadian oil sands producer and the largest jet fuel supplier in the country. Notably, the U.S. oil giant Exxon Mobil Corporation holds an approximately 71% stake in the Canadian operator.
CVE’s Price Performance, Valuation & EstimatesShares of CVE have jumped 102% over the past year compared with the 73.5% improvement of the composite stocks belonging to the industry.
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From a valuation standpoint, CVE trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.79X. This is below the broader industry average of 7.15X.
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The Zacks Consensus Estimate for CVE’s 2026 earnings has seen downward revisions over the past seven days.
Image Source: Zacks Investment Research
SU and IMO currently sport a Zacks Rank #1 (Strong Buy) each, while CVE carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Cenovus's upstream-heavy portfolio gives it significant exposure to higher crude oil prices.WTI crude has rebounded to around $80 per barrel amid renewed Middle East supply concerns.CVE's growth projects aim to increase production while lowering per-barrel operating costs. Cenovus Energy Inc. (CVE - Free Report) has a diversified upstream portfolio spanning oil sands, thermal heavy oil, offshore and conventional assets.The company's upstream operations are primarily located across Western Canada, offshore Newfoundland and Labrador in Atlantic Canada and internationally in the Asia-Pacific region. As upstream production contributes the majority share of its revenues, CVE is highly sensitive to crude oil prices.
Renewed Middle East geopolitical tensions have reversed recent price drops and tightened global oil supply. West Texas Intermediate (“WTI”) crude prices have rebounded to around $80 per barrel after falling to $68.55, according to Oilprice.com. This remains well below of more than $100 per barrel registered in May this year. As a leading Canadian integrated energy company, Cenovus is positioned to capitalize on the higher pricing environment through enhanced upstream earnings and improved operating cash flow. CVE’s diversified production portfolio provides leverage to rising benchmark prices while mitigating the risks associated with any single asset.
Cenovus is expanding production through projects such as Christina Lake North, Sunrise optimization, Foster Creek improvements and the West White Rose offshore development. These projects are expected to increase output while lowering per-barrel operating costs over time. If crude prices remain elevated, Cenovus stands to benefit from higher commodity realizations and growing production volumes, strengthening its cash flow and long-term shareholder value.
Will CNQ & IMO Gain From Favorable Oil Prices?Canadian Natural Resources (CNQ - Free Report) and Imperial Oil Limited (IMO - Free Report) are two other Canadian integrated energy companies that are well-positioned to gain from renewed upward momentum in global crude prices driven by renewed Middle East tensions.
Canadian Natural Resources is engaged in the exploration and production of oil and natural gas. CNQ’s diversified asset base spans conventional crude oil, oil sands mining, bitumen, synthetic crude oil and natural gas.
Imperial Oil operates an integrated energy business spanning upstream production, refining and petrochemicals. IMO is a leading Canadian oil sands producer and the nation's largest supplier of jet fuel.
Since CNQ and IMO are involved in upstream operations, their business models are sensitive to crude prices fluctuations. Consequently, rising crude prices will directly bolster the cash flows and profitability of IMO and CNQ.
CVE’s Price Performance, Valuation & EstimatesCenovus' shares have gained 91.6% over the past year compared with industry’s 41% growth.
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From a valuation standpoint, CVE trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 6.81X. This is below the broader industry average of 6.93X.
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The Zacks Consensus Estimate for CVE's 2026 earnings has remained constant over the past seven days.
Image Source: Zacks Investment Research
CVE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Cenovus shares surged 85.3% in the past year, beating CNQ, SU and the sub-industry's 52.9% rallies.Cenovus expects to beat its C$150M 2026 MEG synergy target and generate above C$400M annually by 2028.Cenovus trades at 6.6X EV/EBITDA, below the industry average and Canadian Natural Resources' 9.08X. Over the past year, shares of Cenovus Energy Inc. (CVE - Free Report) have climbed 85.3%, comfortably outpacing Canadian Natural Resources' (CNQ - Free Report) 33.5% gain and Suncor Energy's (SU - Free Report) 49.9% rally. During the same period, the stock has surpassed the sub-industry’s 52.9% return. The strong stock performance reflects growing investor confidence in the company's execution strategy and expanding operational footprint within Canada's energy sector.
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Cenovus has steadily strengthened its business through disciplined capital allocation, acquisitions and production growth. As the stock continues to outperform, investors are evaluating whether the company's improving fundamentals can support further upside.
Adding to the bullish case, Cenovus has exceeded the Zacks Consensus Estimate in the past four quarters, delivering an average earnings surprise of 50.8%. Such consistent earnings outperformance highlights the company's operational strength despite the cyclical nature of the energy industry.
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Key Factors Driving Cenovus' Growth StoryMEG Energy Acquisition Is Already Delivering ResultsThe acquisition of MEG Energy, completed in late 2025 for C$7.1 billion, has quickly become a major value driver for Cenovus. The transaction expanded the company's oil sands portfolio by adding assets adjacent to its Christina Lake operations, creating opportunities for operational efficiencies and lower development costs.
Management has indicated that redevelopment wells at Christina Lake North are performing better than originally anticipated. Consequently, the company expects to exceed its initial C$150-million synergy target for 2026, while maintaining its outlook of generating more than C$400 million in annual synergies by 2028.
Beyond near-term cost savings, the acquisition strengthens Cenovus' reserve base, enhances production capacity and further reinforces its leadership position among Canada's oil sand producers.
Low-Cost Operations Provide a Durable Competitive AdvantageOne of Cenovus' biggest strengths remains its industry-leading cost structure. According to the company, combined operating and sustaining capital costs are approximately $21 per barrel, making Cenovus one of the lowest-cost producers in its peer group.
Its portfolio of long-life, high-quality oil sands assets enables the company to generate attractive returns across commodity price cycles. Management has also maintained a disciplined capital allocation strategy, with growth projects designed to earn acceptable returns even if WTI crude falls to around US$45 per barrel.
This structural cost advantage positions Cenovus to protect margins, generate healthy free cash flow and continue to create long-term shareholder value even in weaker commodity environments.
Integrated Operations Enhance Cash Flow StabilityWhile crude oil prices remain supportive, the longer-term outlook points to a more balanced global oil market as OPEC+ gradually restores production, geopolitical supply disruptions ease and inventories rebuild. According to the U.S. Energy Information Administration (EIA), Brent crude prices are expected to average $82 per barrel in 2026 before moderating in 2027 as higher global supply weighs on the market.
Against this backdrop, Cenovus appears well-positioned to generate resilient cash flows. The company's upstream portfolio is anchored by long-life oil sand assets with combined operating and sustaining capital costs of approximately $21 per barrel, while management expects its growth investments to generate acceptable returns even at WTI prices of US$45 per barrel. This low-cost production profile provides a meaningful cushion against weaker commodity prices.
Cenovus' integrated business model strengthens its earnings resilience. The company owns approximately 660,000 barrels per day of refining capacity across North America through refineries in Canada and the United States. This downstream business helps offset volatility in upstream earnings by capturing refining margins when crude price realizations weaken. In addition, its extensive pipeline connectivity and heavy-oil processing capabilities help reduce the impact of Western Canadian Select (WCS) price differentials.
The combination of low-cost upstream operations and a sizable downstream refining network enables Cenovus to generate relatively stable free cash flow across commodity cycles, supporting continued shareholder returns, disciplined capital allocation and long-term production growth.
Estimates Reflect Continued Earnings GrowthAnalyst sentiment has become increasingly constructive toward Cenovus in recent months. The Zacks Consensus Estimate for 2026 revenues stands at $37.6 billion, implying 5.8% year-over-year growth, while earnings are projected to reach $3.02 per share, representing an impressive 96% increase from the prior year.
For 2027, consensus estimates call for an additional 1.5% increase in revenues, although earnings are expected to decline 8.2%.
Reflecting improved confidence in the company's outlook, earnings estimates have also moved higher. Over the past 60 days, the consensus EPS estimate has increased 2.03% for 2026 and 6.13% for 2027.
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Attractive Valuation Compared With PeersDespite its strong share price appreciation, Cenovus continues to trade at a reasonable valuation. The stock currently carries a trailing 12-month EV/EBITDA multiple of 6.6X, slightly below the industry average of 6.65X.
The valuation also remains well below Canadian Natural Resources, which trades at 9.08X EV/EBITDA. Although Suncor Energy commands a similar multiple, Cenovus offers a more compelling long-term growth profile, supported by acquisition synergies, low-cost operations and multiple development opportunities that should drive production growth.
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Should You Buy CVE Stock?Cenovus has built a compelling long-term investment case by combining disciplined execution with growth initiatives. The successful integration of the MEG Energy acquisition, one of the industry's lowest operating cost structures and a highly integrated upstream-downstream business model, positions the company to generate resilient earnings across varying commodity price environments.
At the same time, improving earnings estimates indicate growing confidence in management's ability to translate these operational strengths into higher profitability. Despite its strong rally over the past year, the stock continues to trade at an attractive valuation relative to the broader industry and several key competitors.
Backed by a Zacks Rank #1 (Strong Buy), Cenovus appears well-positioned to deliver sustainable shareholder value over the long term, making the stock an attractive consideration for investors seeking exposure to a financially disciplined and operationally efficient Canadian energy producer.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Cenovus rose 3.5% as higher crude prices lifted energy sector sentiment.CVE posted record upstream production, stronger margins and reaffirmed growth plans.CVE beat EPS estimates despite lower revenue, with earnings estimates rising over the past 60 days. Cenovus Energy Inc. (CVE - Free Report) shares gained 3.5% on July 7 as higher crude oil prices lifted sentiment across the energy sector. Rising oil prices improved expectations for producers' cash flows and earnings, while strength in the broader energy market boosted shares of integrated companies like Cenovus.
Strong Q1 Performance Continues to Support SentimentInvestor optimism was also supported by the company's strong first-quarter performance, released in May. CVE reported first-quarter 2026 adjusted earnings of 61 cents per share, topping the Zacks Consensus Estimate of 56 cents and nearly doubling from 32 cents a year earlier. Revenue, however, totaled $9 billion, falling short of the consensus estimate of $9.3 billion and declining slightly from the prior-year quarter. The company posted record upstream production and reaffirmed growth plans following the MEG Energy acquisition.
Improving Margins Offset Revenue MissCenovus Energy's operations include Canadian oil sands, conventional and offshore production, supported by refining assets across Canada and the United States. While revenue actuals lagged the Zacks Consensus Estimate for the quarter, CVE posted stronger operating margins across its upstream and downstream businesses, with higher oil sands volumes and a sharp turnaround in refining profitability.
Robust Growth Outlook and Attractive ValuationCenovus has an expected earnings growth rate of 96.1% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 2% over the past 60 days. CVE has expected sales growth of 5.8% for the current year. This Zacks Rank #1 (Strong Buy) company has a VGM Score of B. It has a Forward PE of 8.07, which compares with the industry average of 8.40, suggesting that the stock is trading at a slight valuation discount to its peers. This could indicate an attractive entry point if the company continues to deliver earnings growth.
CVE Outperforms Industry PeersCVE, which belongs to the Zacks Oil and Gas - Integrated - Canadian industry, has seen its stock rise 53.6% over the past six months compared with 28.7% growth in the industry. Canadian Natural Resources Limited (CNQ - Free Report) and Baytex Energy Corp. (BTE - Free Report) , two of its peers from the same industry, carry a Rank #3 (Hold). CNQ and BTE stocks have gained 26.9% and 21.9%, respectively, in the same period, lagging the market. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Bottom LineCenovus Energy appears well-positioned thanks to higher crude prices, strong operational execution and improving profitability across both its upstream and downstream businesses. The company's robust earnings growth outlook, favorable Zacks Rank, upward earnings estimate revisions and valuation discount relative to peers further strengthen its investment case. While commodity price volatility and refining market swings remain risks, investors seeking exposure to the Canadian integrated energy sector may find CVE an attractive stock to consider for long-term growth.
Key Takeaways Cenovus' upstream production is pressured as crude prices settle well below prior war-premium highs.CVE's integrated refining infrastructure and pipeline assets help limit exposure to oil price volatility.Cenovus adjusts transport and refining operations to reach better markets and boost margins. Cenovus Energy Inc. (CVE - Free Report) is a Canada-based integrated energy company with exposure to both the upstream and downstream segments of the energy industry. The company’s upstream production is primarily focused on its Canadian oil sands assets, alongside conventional and offshore production, while its downstream infrastructure comprises refining assets in Canada and the United States.
The majority of CVE’s production comes from its Canadian oil sands assets, which consist of heavy and bitumen-blend crude typically priced against the Western Canadian Select (“WCS”). The WCS benchmark usually trades at a discount to the West Texas Intermediate (“WTI”). Crude oil prices have also softened considerably in recent weeks, closing at $68.69 per barrel on July 2. This demonstrates that crude prices have settled well below the war-premium highs seen previously, when WTI surpassed the $100 per barrel mark.
The company’s upstream segment remains sensitive to changes in crude prices. In a lower oil price environment, Cenovus' integrated structure plays a crucial role in protecting its profitability. The company’s access to downstream infrastructure and pipeline capacity provides a cushion that can partially offset the risk of heavy oil price dislocations.
Management has highlighted that it actively looks for opportunities across its pipeline and transportation network to move crude into premium markets and realize better pricing. Similarly, on the refining side, the company continues to adjust refining operations based on market conditions to maximize the production of higher-value refined products, enabling it to capture higher margins. This allows Cenovus to capture greater value across the integrated value chain and partially offset the impact of lower crude prices on its upstream operations. The company's integrated business model and its focus on maximizing value across the supply chain should enable it to navigate a softer crude price environment with ease.
Other Canadian Integrated Energy CompaniesCanadian Natural Resources (CNQ - Free Report) is one of the largest independent energy companies in Canada, engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. Canadian Natural has set an ambitious production target for 2026, aiming for a total annual production range of 1,615 thousand barrels of oil equivalent per day (MBOE/d) to 1,665 MBOE/d. This target represents an approximately 4% increase in production compared with 2025.
Imperial Oil Limited (IMO - Free Report) is another leading integrated energy company headquartered in Canada. IMO’s operations span across exploration and production, refining and a petrochemicals business. The company is a major Canadian oil sands producer and the largest jet fuel supplier in the country. Notably, the U.S. oil giant Exxon Mobil Corporation holds an approximately 71% stake in the Canadian operator.
CVE’s Price Performance, Valuation & EstimatesShares of CVE have jumped 75.5% over the past year compared with the 54.2% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, CVE trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.16X. This is below the broader industry average of 6.49X.
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The Zacks Consensus Estimate for CVE’s 2026 earnings hasn’t seen any revisions over the past seven days.
Image Source: Zacks Investment Research
CVE and IMO currently sport a Zacks Rank #1 (Strong Buy) each, while CNQ carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cenovus Energy (CVE - Free Report) Cenovus Energy Inc. is a Calgary, Canada-based integrated energy company. The company produces crude oil, natural gas and natural gas liquids, and markets its production across North America and international markets. Its upstream operations are mainly in Canada and the Asia Pacific region. Its downstream operations include upgrading and refining assets in Canada and the United States.
CVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CVE has a Growth Style Score of B, forecasting year-over-year earnings growth of 96.1% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.74 to $3.02 per share. CVE also boasts an average earnings surprise of +50.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CVE should be on investors' short list.
Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.CVE, FIVN, PAGS, ERO and PARR are screened as bargain stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score. Investors generally tend to cling to the price-to-earnings (P/E) metric while looking for bargain stocks. In addition to being a widely used tool for screening stocks, P/E is also a popular metric to work out the fair market value of a company. But even this ubiquitously used valuation multiple has a few downsides.
Although P/E is the most popular valuation metric, a more complicated multiple called EV-to-EBITDA works even better. Often considered a better alternative to P/E, it gives the true picture of a company’s valuation and earnings potential and has a more complete approach to valuation. While P/E considers a firm’s equity portion, EV-to-EBITDA determines its total value.
Cenovus Energy Inc. (CVE - Free Report) , Five9, Inc. (FIVN - Free Report) , PagSeguro Digital Ltd. (PAGS - Free Report) , Ero Copper Corp. (ERO - Free Report) and Par Pacific Holdings, Inc. (PARR - Free Report) are some stocks with attractive EV-to-EBITDA ratios.
Why EV-to-EBITDA Is a Better Alternative?Also dubbed as the enterprise multiple, EV-to-EBITDA is the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. In essence, it is the entire value of a company. EBITDA, the other element, gives a clearer picture of a company’s profitability by removing the impact of non-cash expenses such as depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.
Typically, the lower the EV-to-EBITDA ratio, the more enticing it is. A low EV-to-EBITDA ratio could indicate that a stock is undervalued. Unlike the P/E ratio, EV-to-EBITDA takes debt on a company’s balance sheet into account. For this reason, it is typically used to value acquisition targets. The ratio shows the amount of debt that the acquirer has to bear. Stocks flaunting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.
Another shortcoming of P/E is that it can’t be used to value a loss-making firm. A company’s earnings are also subject to accounting estimates and management manipulation. On the other hand, EV-to-EBITDA is difficult to manipulate and can also be used to value loss-making but EBITDA-positive companies. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. Moreover, it can be used to compare companies with different levels of debt.
EV-to-EBITDA is not devoid of limitations and alone cannot conclusively determine a stock’s inherent potential and future performance. The multiple varies across industries and is usually not appropriate when comparing stocks in different industries, given their diverse capital expenditure requirements.
Thus, instead of just relying on EV-to-EBITDA, you can club it with the other major ratios, such as price-to-book (P/B), P/E and price-to-sales (P/S) to achieve the desired results.
Screening CriteriaHere are the parameters to screen for bargain stocks:
EV-to-EBITDA 12 Months-Most Recent less than X-Industry Median: A lower EV-to-EBITDA ratio represents a cheaper valuation.
P/E using (F1) less than X-Industry Median: This metric screens stocks that are trading at a discount to their peers.
P/B less than X-Industry Median: A lower P/B compared with the industry average implies that the stock is undervalued.
P/S less than X-Industry Median: The lower the P/S ratio, the more attractive the stock is, as investors will have to pay a smaller price for the same amount of sales generated by the company.
Estimated One-Year EPS Growth F(1)/F(0) greater than or equal to X-Industry Median: This parameter will help in screening stocks that have growth rates higher than the industry median.
Average 20-day Volume greater than or equal to 100,000: The addition of this metric ensures that shares can be traded easily.
Current Price greater than or equal to $5: This parameter will help in screening stocks that are trading at a minimum price of $5 or higher.
Zacks Rank less than or equal to 2: It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have always managed to beat adversities and outperform the market.
Value Score of less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here are our five picks out of the 19 stocks that passed the screen:
Cenovus Energy is a leading integrated energy firm with operations comprising marketing the produced oil, natural gas and natural gas liquids. This Zacks Rank #1 stock has a Value Score of A.
Cenovus Energy has an expected year-over-year earnings growth rate of 104.6% for 2026. The Zacks Consensus Estimate for CVE’s 2026 earnings has been revised 83.1% upward over the past 60 days.
Five9 provides cloud software for contact centers across the globe for enterprises, including leading health systems and financial institutions. This Zacks Rank #1 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
Five9 has an expected earnings growth rate of 10.1% for 2026. FIVN’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 8.8%.
PagSeguro Digital is one of the largest digital banks in Brazil, promoting innovative solutions in financial services and payment methods. This Zacks Rank #2 company has a Value Score of A.
PagSeguro Digital has an expected year-over-year earnings growth rate of 19.7% for 2026. The Zacks Consensus Estimate for PAGS’ 2026 earnings has moved up 2.4% over the past 60 days.
Ero Copper is a Brazil-focused mining company with a diversified portfolio of copper and gold assets. This Zacks Rank #2 company has a Value Score of A.
Ero Copper has an expected year-over-year earnings growth rate of 93.9% for 2026. The consensus estimate for ERO's 2026 earnings has been revised 7.3% upward over the past 60 days.
Par Pacific Holdings is a growth-oriented energy company supplying conventional and renewable fuels across the western United States. This Zacks Rank #2 company has a Value Score of A.
Par Pacific Holdings has an expected year-over-year earnings growth rate of 106.4% for 2026. The Zacks Consensus Estimate for PARR’s 2026 earnings has moved up 9.9% over the past 60 days.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Cenovus Energy (CVE - Free Report) is a stock many investors are watching right now. CVE is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
We should also highlight that CVE has a P/B ratio of 1.44. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.12. Over the past 12 months, CVE's P/B has been as high as 1.57 and as low as 0.93, with a median of 1.27.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CVE has a P/S ratio of 1.31. This compares to its industry's average P/S of 1.45.
Finally, we should also recognize that CVE has a P/CF ratio of 5.63. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.12. Within the past 12 months, CVE's P/CF has been as high as 5.82 and as low as 3.46, with a median of 4.49.
These are only a few of the key metrics included in Cenovus Energy's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CVE looks like an impressive value stock at the moment.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Powell Industries, Inc. (POWL - Free Report) : This semiconductor company has seen the Zacks Consensus Estimate for its current year earnings increasing 39.1% over the last 60 days.
Delek US Holdings, Inc. (DK - Free Report) : This integrated downstream energy company has seen the Zacks Consensus Estimate for its current year earnings increasing 44% over the last 60 days.
Alliance Laundry Holdings Inc. (ALH - Free Report) : This commercial laundry systems company has seen the Zacks Consensus Estimate for its current year earnings increasing 10.3% over the last 60 days.
Cenovus Energy Inc. (CVE - Free Report) : This integrated energy company has seen the Zacks Consensus Estimate for its current year earnings increasing 38.2% over the last 60 days.
Legacy Housing Corporation (LEGH - Free Report) : This manufactured housing company has seen the Zacks Consensus Estimate for its current year earnings increasing 11.5% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cenovus Energy offers more than just profit upside from higher commodity prices. The Cenovus Energy growth strategy provides resilience in a volatile sector. The company is focused on increasing production per share and extracting more value from both new and existing heavy oil and thermal assets.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cenovus Energy (CVE - Free Report) Cenovus Energy Inc. is a Calgary, Canada-based integrated energy company. The company produces crude oil, natural gas and natural gas liquids, and markets its production across North America and international markets. Its upstream operations are mainly in Canada and the Asia Pacific region. Its downstream operations include upgrading and refining assets in Canada and the United States.
CVE is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CVE has a Growth Style Score of A, forecasting year-over-year earnings growth of 104.6% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.87 to $3.15 per share. CVE also boasts an average earnings surprise of +50.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CVE should be on investors' short list.
SummaryCenovus Energy is positioned for robust Q2 cash flow, driven by higher oil prices and improved refining margins.CVE's strong free cash flow is expected to accelerate debt reduction, with net debt potentially nearing its CAD$4 billion target by year-end.With preferred shares fully bought back, CVE is poised to ramp up shareholder returns over the next year or so.Trading at less than 6x EV/EBITDA on 2027 estimates, CVE offers attractive value with production growth and increasing capital returns.Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More »Sitewide Sale 2026: Get 20% Off Seiya Tabuchi/iStock via Getty Images
Article Thesis Cenovus Energy Inc. (CVE) is a Canadian energy company that offers strong production growth and that trades at a very undemanding valuation. I believe that during the second quarter, and possibly the third quarter, Cenovus Energy should generate huge cash
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of CVE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
In the latest trading session, Cenovus Energy (CVE - Free Report) closed at $27.11, marking a -4.1% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.65%. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 3.07%.
The stock of oil company has fallen by 8.27% in the past month, lagging the Oils-Energy sector's loss of 2.71% and the S&P 500's gain of 0.48%.
The investment community will be closely monitoring the performance of Cenovus Energy in its forthcoming earnings report. On that day, Cenovus Energy is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 184.85%. Our most recent consensus estimate is calling for quarterly revenue of $9.57 billion, up 7.53% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.15 per share and revenue of $38.19 billion, indicating changes of +104.55% and +7.42%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cenovus Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.65% higher. Currently, Cenovus Energy is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Cenovus Energy is holding a Forward P/E ratio of 8.97. This indicates a discount in contrast to its industry's Forward P/E of 10.31.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 20, placing it within the top 9% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
On June 15, 2026, Cenovus Energy Inc CVE shares fell 4.1% to a current price of $27.11. The stock has experienced a 52-week range of $13.47 to $32.07, reflecting significant volatility over the past year.
GF Value™ verdict: CVE is currently priced at $27.11, which is 66.6% above its GF Value™ estimate of $16.27.GF Score™ of 66/100 indicates an above-average potential for long-term returns.Most notable signal: No insider transactions have been reported in the last 3 months. Is CVE Overvalued or Undervalued? Based on the current price of $27.11 and the GF Value™ estimate of $16.27, Cenovus Energy Inc appears to be significantly overvalued, with a margin of safety of 66.6%. This valuation label suggests that the stock is trading well above its intrinsic value, which poses a risk to potential investors. If the market corrects itself, the stock price may decline, aligning more closely with the GF Value™ estimate. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
As CVE is trading at a substantial premium to its GF Value™, the overvaluation indicates that investors may face a higher degree of risk should the stock price adjust downward. The lack of insider transactions in recent months further underscores a cautious outlook among insiders, who typically have better insights into the company's prospects.
How Does CVE's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)14.9x12.2x Forward P/E8.3xN/A The current P/E ratio of 14.9x is 23% above its 5-year median of 12.2x, indicating that Cenovus Energy is trading above its historical valuation levels. This analysis supports the GF Value™ verdict that suggests the stock is overvalued, as historical trends typically provide a benchmark for assessing current valuations.
What Does CVE's GF Score™ Tell Us? MetricRating GF Score™66 Financial Strength6/10 Profitability7/10 Growth4/10 Valuation3/10 Momentum3/10 CVE's GF Score™ of 66/100 suggests that it possesses above-average qualities that could contribute to long-term returns. The strongest area is profitability, rated at 7/10, indicating good profit margins and operational efficiency. However, the weakest points are in valuation and momentum, each rated at 3/10, which aligns with the current overvaluation indicated by the GF Value™ analysis. Overall, while the company shows some strengths, the valuation metrics raise concerns about its sustainability at current price levels.
What Are Insiders Doing with CVE Stock? In the past three months, there have been no insider transactions reported for Cenovus Energy Inc. This lack of activity suggests that insiders may currently hold a neutral view on the stock's prospects, which can often indicate caution in the face of potential overvaluation. Insider buying could have signaled confidence in the company's future, while the absence of transactions could reflect uncertainty or a wait-and-see approach regarding market conditions.
What This Means for Investors Based on the GF Value™ estimate and current market conditions, Cenovus Energy Inc is deemed overvalued. With a significant premium over its intrinsic value, investors may want to exercise caution before entering or increasing their positions in CVE.
For the complete analysis, visit the Cenovus Energy Inc CVE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CVE's GF Score™?
CVE has a GF Score™ of 66/100, indicating above-average potential for long-term returns based on various financial metrics.
Is CVE overvalued or undervalued?
CVE is considered overvalued, with its current price significantly higher than the GF Value™ estimate of $16.27.
What is CVE's P/E ratio?
CVE's P/E (TTM) is 14.9x, which is notably above its 5-year median P/E of 12.2x, further supporting the assessment of overvaluation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Shares of Cenovus Energy (CVE - Free Report) have been strong performers lately, with the stock up 26.7% over the past month. The stock hit a new 52-week high of $31.68 in the previous session. Cenovus has gained 86.6% since the start of the year compared to the 32% gain for the Zacks Oils-Energy sector and the 68.1% return for the Zacks Oil and Gas - Integrated - Canadian industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, Cenovus reported EPS of $0.61 versus consensus estimate of $0.56 while it missed the consensus revenue estimate by 2.75%.
For the current fiscal year, Cenovus is expected to post earnings of $3.01 per share on $37.4 in revenues. This represents a 95.45% change in EPS on a 5.19% change in revenues. For the next fiscal year, the company is expected to earn $2.76 per share on $38.04 in revenues. This represents a year-over-year change of -8.42% and 1.7%, respectively.
Valuation MetricsWhile Cenovus has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cenovus has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 9.1X versus its peer group's average of 11.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Cenovus currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cenovus fits the bill. Thus, it seems as though Cenovus shares could have a bit more room to run in the near term.
Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals?
Enter the Zacks Rank.
What is the Zacks Rank?The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
These four factors are assigned a raw score that's recalculated every night, which is then compiled into the ranking system. Stocks are classified into five groups using this data, ranging from "Strong Buy" to "Strong Sell."
The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
Institutional investors are the professionals who manage the trillions of dollars invested in mutual funds, investment banks, and hedge funds. Studies have shown that these investors can and do move the market due to the large amounts of money they invest with. Because of this, the market tends to move in the same direction as institutional investors.
In order to determine the fair value of a company and its shares, institutional investors design valuation models that focus on earnings and earnings estimates. Because if you raise earnings estimates, it then creates a higher fair value for a company and its stock price.
With these changes, institutional investors will act, usually buying stocks with rising estimates and selling those with falling estimates. An increase in earnings expectations can potentially lead to higher stock prices and bigger gains for the investor.
Because it can take a long time for an institutional investor to build a position--sometimes weeks, if not months--retail investors who get in at the first sign of upward revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +23.7%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at Cenovus Energy (CVE - Free Report) , which was added to the Zacks Rank #1 list on April 21, 2026.
Calgary, Canada-based Cenovus Energy Inc. is a leading integrated energy firm. Starting from pumping out oil from its oil sands projects in Canada, the company’s operations comprise marketing the produced oil, natural gas and natural gas liquids (NGLs). Cenovus’ entire operation of oil and gas production is concentrated in Canada, within the provinces of Alberta and British Columbia. CVE supplies oil to the Gulf Coast of the United States through the Enbridge Flanagan South pipeline.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.88 to $3.01 per share. CVE boasts an average earnings surprise of 50.8%.
Earnings are expected to grow 95.5% for the current fiscal year, while revenue is projected to increase 5.2%.
CVE has been moving higher over the past four weeks as well, up 17.8% compared to the S&P 500's gain of 4.6%.
Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Cenovus Energy should be on investors' shortlist.
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Key Takeaways Cenovus expects upstream production to exceed 1.1 MMBoe/d by 2028.CVE plans to increase oil sands output from Christina Lake, Foster Creek and Sunrise projects.Cenovus expects West White Rose to reach peak production of 45 Mbbls/d by 2028. Cenovus Energy Inc. (CVE - Free Report) is a Canadian energy company that develops, produces, refines, and markets crude oil, natural gas and petroleum products across North America and the Asia-Pacific region. With a diversified upstream portfolio spanning oil sands, offshore, thermal heavy oil and conventional assets, CVE is positioned to meet rising global hydrocarbon demand. The company projects total upstream production to grow from approximately 965 thousand barrels of oil equivalent per day (MBoe/d) in 2026 to more than 1.1 million barrels of oil equivalent per day (MMBoe/d) by 2028.
By 2028, Cenovus aims to significantly boost its oil sands output through several high-impact projects. Christina Lake North is expected to add about 40 thousand barrels per day (Mbbls/d) of production by 2028 through redevelopment wells and new steam generators. Foster Creek is projected to contribute additional output, while Sunrise production is expected to rise by 15-20 Mbbls/d between 2024 and 2028. In the Lloydminster region, Cenovus expects thermal and conventional heavy oil projects to add around 30 Mbbls/d combined by 2028.
The West White Rose offshore project is on track to achieve first production in 2026 and reach peak output of roughly 45 Mbbls/d by 2028. By merging offshore capabilities with its conventional and long-life oil sands assets, the company has built a balanced portfolio. This strategic mix positions the company well to support rising global hydrocarbon demand.
Can FANG & XOM Increase Output Through Diversified Portfolios?Diamondback Energy, Inc. (FANG - Free Report) is a leading Permian-focused independent oil and gas producer with 890,496 net acres across the Permian Basin, including 797,074 net acres in the Midland Basin and 93,422 net acres in the Delaware Basin. The company develops stacked resources in the Spraberry, Wolfcamp and Bone Spring formations using advanced horizontal drilling and high-intensity completion techniques. Supported by strong operational execution and efficiency gains, FANG raised its 2026 oil production outlook to more than 520 thousand barrels of oil per day (MBO/d) from the prior range of 500-510 MBO/d, while total production guidance has been raised to more than 972 MBoe/d from the prior range of 926-962 MBoe/d.
Exxon Mobil Corporation (XOM - Free Report) drives its growth through a geographically diversified portfolio anchored by the Permian Basin, offshore Guyana and its liquified natural gas (LNG) operations. In the first quarter of 2026, XOM achieved its first LNG production at Golden Pass Train 1, a milestone projected to boost U.S. LNG exports by 5% compared with 2025. ExxonMobil’s Permian production is on track to reach about 1.8 million barrels of oil equivalent (MMBoe/d) in 2026, paving the way for a 2.5 MMBoe/d long-term Permian production goal and 5.5 MMBoe/d total upstream output by 2030.
CVE’s Price Performance, Valuation & EstimatesCenovus shares have gained 120.4% over the past year compared with 97.3% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, CVE trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 7.4X. This is below the broader industry average of 7.84X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CVE's first-quarter 2026 earnings has seen upward revisions over the past seven days. Meanwhile, estimates for second-quarter 2026 and full-year 2026 earnings have remained constant.
Image Source: Zacks Investment Research
CVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cenovus Energy (CVE - Free Report) Calgary, Canada-based Cenovus Energy Inc. is a leading integrated energy firm. Starting from pumping out oil from its oil sands projects in Canada, the company’s operations comprise marketing the produced oil, natural gas and natural gas liquids (NGLs). Cenovus’ entire operation of oil and gas production is concentrated in Canada, within the provinces of Alberta and British Columbia. CVE supplies oil to the Gulf Coast of the United States through the Enbridge Flanagan South pipeline.
CVE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CVE has a Growth Style Score of B, forecasting year-over-year earnings growth of 104.6% for the current fiscal year.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.43 to $3.15 per share. CVE boasts an average earnings surprise of +50.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CVE should be on investors' short list.
Key Takeaways CVE is advancing Christina Lake North, Sunrise optimization and West White Rose to boost upstream volumes.At Christina Lake North, the delineation program confirmed long-life reserves and 250 redevelopment targets.CVE says redevelopment wells started earlier than expected and should lift asset production through 2026. Cenovus Energy (CVE - Free Report) is an integrated energy company based in Canada, with operations spanning upstream and downstream segments. The company’s upstream segment recorded strong production volumes of 972,000 barrels of oil equivalent per day (Boe/d) in the first quarter. CVE’s upstream production is primarily supported by its oil sands assets in northern Alberta. Following the acquisition of MEG Energy, Christina Lake North is emerging as a key growth driver for the company.
Management stated in its latest earnings call that it completed delineation drilling and seismic work at Christina Lake North, which confirmed the high-quality and long reserve life of the resource. Notably, during the delineation program, the company identified 250 redevelopment opportunities across the asset, indicating that Cenovus will have a long-term inventory of future drilling locations. Additionally, CVE highlighted that the redevelopment well program at Christina Lake North was implemented earlier than anticipated and is expected to raise production from the asset throughout the rest of 2026.
Cenovus is also investing in other assets to increase its upstream production levels, including the Sunrise optimization project and the West White Rose. The long runway of growth projects is expected to increase CVE’s total upstream production to more than 1 million Boe/d by 2028. The expansion of Christina Lake North and its other growth projects are expected to become a key contributor to CVE’s long-term production growth and cash flow generation strategy.
Other Canadian Integrated Energy CompaniesCanadian Natural Resources (CNQ - Free Report) is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. Canadian Natural has set an ambitious production target for 2026, aiming for a total annual production range of 1,615 thousand barrels of oil equivalent per day (MBOE/d) to 1,665 MBOE/d. This target represents an approximately 4% increase in production compared with 2025.
Imperial Oil Limited (IMO - Free Report) is another leading integrated energy company headquartered in Canada. IMO’s operations span across exploration and production, refining and a petrochemicals business. The company is a major Canadian oil sands producer and the largest jet fuel supplier in the country. Notably, the U.S. oil giant Exxon Mobil Corporation holds an approximately 71% stake in the Canadian operator.
CVE’s Price Performance, Valuation & EstimatesShares of CVE have surged 111.4% over the past year compared with the 87.8% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, CVE trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.96X. This is below the broader industry average of 7.39X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CVE’s 2026 earnings hasn’t seen any revisions over the past seven days.
Image Source: Zacks Investment Research
CVE and IMO currently sport a Zacks Rank #1 (Strong Buy) each, while CNQ carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Our proprietary system currently recommends Cenovus Energy (CVE - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this oil company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Cenovus is 22.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 104.8% this year, crushing the industry average, which calls for EPS growth of 87.7%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Cenovus is 11.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 3.8%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 59% over the past 3-5 years versus the industry average of 16%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Cenovus have been revising upward. The Zacks Consensus Estimate for the current year has surged 38.1% over the past month.
Bottom LineCenovus has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Cenovus is a potential outperformer and a solid choice for growth investors.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Cenovus Energy (CVE - Free Report) . CVE is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.
Another notable valuation metric for CVE is its P/B ratio of 1.44. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.40. CVE's P/B has been as high as 1.57 and as low as 0.93, with a median of 1.27, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CVE has a P/S ratio of 1.5. This compares to its industry's average P/S of 1.61.
Finally, investors will want to recognize that CVE has a P/CF ratio of 5.63. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CVE's P/CF compares to its industry's average P/CF of 8.08. CVE's P/CF has been as high as 5.82 and as low as 3.46, with a median of 4.49, all within the past year.
These are just a handful of the figures considered in Cenovus Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CVE is an impressive value stock right now.
The broader equity markets witnessed intense volatility over the past week, hitting record highs on one hand and plummeting sharply on the other, as skirmishes in the Iran-U.S. war continued with a fragile ceasefire agreement. As oil prices swung across the fulcrum, bond yields soared, and equity markets took a hammering amid concerns over rising inflation. However, the markets were quick to bounce back as investors appeared to rotate out of chip names in favor of non-tech stocks despite an AI-infused inherent market strength.
The persistent Iran blockade and restrictions in the Strait of Hormuz continue to add to the stock market misery, with uncertainty being the order of the day. As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. Ross Stores, Inc. (ROST - Free Report) , TE Connectivity plc (TEL - Free Report) , Cenovus Energy Inc. (CVE - Free Report) , Globe Life Inc. (GL - Free Report) and The Charles Schwab Corporation (SCHW - Free Report) are some of the stocks with high ROE to profit from.
In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.
Price/Cash Flow less than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.
Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of assets, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.
5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 14 stocks that qualified the screening:
Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices at generally 20% to 60% below the regular prices of most department and specialty stores.
The company has a long-term earnings growth expectation of 11.5% and delivered a trailing four-quarter earnings surprise of 10.2%, on average. Ross carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements.
The company has a long-term earnings growth expectation of 12.5%. It delivered a trailing four-quarter earnings surprise of 6%, on average. It has a VGM Score of B. TE Connectivity carries a Zacks Rank #2.
Cenovus Energy: Calgary, Canada-based Cenovus Energy is a leading integrated energy firm. Starting from pumping out oil from its oil sands projects in Canada, the company’s operations comprise marketing the produced oil, natural gas and natural gas liquids. CVE supplies oil to the Gulf Coast of the United States through the Enbridge Flanagan South pipeline.
It has a VGM Score of A and delivered a trailing four-quarter earnings surprise of 50.8%, on average. Cenovus Energy currently sports a Zacks Rank #1.
Globe Life: Based in McKinney, TX, Globe Life is an insurance holding company that markets primarily individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. The company's insurance subsidiaries write a variety of non-participating ordinary life insurance products, which include traditional whole life, term life and other life insurance. Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include primarily critical illness and accident plans.
It delivered a trailing four-quarter earnings surprise of 1.1%, on average. Globe Life carries a Zacks Rank #2 at present.
Charles Schwab: Headquartered in Westlake, TX, The Charles Schwab Corporation is a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody and financial advisory services. The company has nearly 400 branches across 48 states and the District of Columbia, as well as locations in Puerto Rico, the U.K., Hong Kong and Singapore.
The company has a long-term earnings growth expectation of 17.3%. It delivered a trailing four-quarter earnings surprise of 3.8%, on average. Charles Schwab carries a Zacks Rank #2.
It has been about a month since the last earnings report for Cenovus Energy (CVE - Free Report) . Shares have added about 4.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cenovus due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Cenovus Energy Inc before we dive into how investors and analysts have reacted as of late.
Cenovus Energy Q1 Earnings Beat EstimatesCenovus Energyreported first-quarter 2026 adjusted earnings of 61 cents per share, which beat the Zacks Consensus Estimate of 56 cents by 8.9%. The bottom line increased from the year-ago quarter’s figure of 32 cents.
Total quarterly revenues of $9 billion missed the Zacks Consensus Estimate of $9.3 billion by 3.2%. The top line declined from the year-ago quarter’s level of $9.3 billion.
Strong quarterly earnings were primarily driven by higher total upstream production. A rise in general and administrative expenses, and net foreign exchange (gain) loss, partially offset the positives.
Operational PerformanceUpstreamCenovus Sees Oil Sands Revenue Growth Despite Price MixCenovus’ Oil Sands segment revenues increased to C$7.8 billion from C$7.0 billion in the year-ago quarter, driven by higher sales volumes. The operating margin from the Oil Sands unit totaled C$3.1 billion, up from C$2.54 billion reported a year ago.
Cenovus’ Conventional segment revenues increased to C$1.0 billion from C$924 million in the first quarter of 2025. The operating margin from the Conventional unit totaled C$211 million, reflecting a significant increase from C$173 million recorded in the year-ago quarter.
Cenovus’ Offshore segment revenues were C$524 million, higher than the C$426 million recorded in the prior year. The Offshore unit recorded an operating margin of C$402 million, up from C$331 million in the year-ago quarter.
CVE's Output Rises on Oil SandsIn the first quarter, the company recorded Oil Sands crude oil and natural gas liquids production of 772.6 thousand barrels per day (Mbbls/d), an increase from the year-ago quarter’s figure of 624.3 Mbbls/d. Oil Sands natural gas production was 14.4 million cubic feet per day (MMcf/d), higher than the 11.4 MMcf/d recorded a year ago. Oil Sands volumes rose 23.8% to 775.0 thousand barrels of oil equivalent per day (Mboe/d) from 626.2 Mboe/d in the year-ago quarter.
The company’s Conventional crude oil and natural gas liquids production was 28.9 Mbbls/d compared with 25.7 Mbbls/d a year ago. Conventional natural gas production was 852 MMcf/d, lower than the 887.9 MMcf/d recorded a year ago. Conventional volumes dipped 1.8% to 121.7 Mboe/d from 123.9 Mboe/d recorded in the first quarter of 2025.
The company’s Offshore crude oil and natural gas liquids production was 28.6 Mbbls/d compared with 20.9 Mbbls/d a year ago. Offshore natural gas production was 281.2 million cubic feet per day (MMcf/d), lower than the 287.2 MMcf/d recorded a year ago. Offshore production increased 9.6% to 75.4 Mboe/d from the year-ago figure of 68.8 Mboe/d.
The total upstream production in the reported quarter increased 18.7% to 972.1 (Mboe/d) compared with 818.9 Mboe/d in the year-earlier quarter.
DownstreamCVE’s Downstream Segment Profitability Improved SharplyCenovus’ Canadian Refining segment revenues were C$1.4 billion, higher than the C$1.3 billion recorded in the prior year. The operating margin from the Canadian Refining unit was C$201 million, which improved from C$68 million in the first quarter of 2024.
The U.S. Refining segment recorded revenues of C$4.2 billion, lower than the prior-year figure of C$6.4 billion. The operating margin from the U.S. Refining unit was C$533 million against a negative operating margin of C$305 million in the prior-year quarter.
Total downstream revenues decreased to C$5.6 billion from C$7.7 billion a year ago, while operating margin rose to C$734 million from a negative C$237 million a year ago.
CVE's Downstream Resets After WRB DivestitureDownstream operations reflected the impact of the WRB divestiture completed in late 2025. Total crude oil unit throughput fell 31.1% year over year to 458.5 Mbbls/d, driven by a 38.0% decline in U.S. Refining throughput to 343.2 Mbbls/d. Canadian Refining throughput increased 3.0% to 115.3 Mbbls/d, driven by strong utilization.
Expenses of CVEGeneral and administrative expenses increased to C$411 million from C$197 million recorded in the first quarter of 2025. CVE also recorded C$179 million of net foreign exchange (gain) loss.
Expenses for Purchased Product, Transportation and Blending costs decreased to C$6.6 billion from C$8.9 billion in the prior-year quarter.
CVE: Cash Flow & Balance SheetCenovus generated cash from operating activities of C$2.2 billion, up from C$1.3 billion a year ago. Cenovus made a total capital investment of C$1.2 billion in the quarter under review.
As of March 31, 2026, the Canada-based energy player had cash and cash equivalents of C$2.6 billion. Long-term debt declined to C$10.6 billion as of March 31, 2026, from C$11 billion at the end of 2025.
CVE Steps Up Shareholder ReturnsCenovus returned C$1 billion to common and preferred shareholders in the reported quarter. This included C$377 million in common-share base dividends and C$356 million of common-share repurchases under its NCIB and C$300 million in preferred share redemptions.
The board declared a second-quarter base dividend of 22 cents (Canadian) per common share, up 10% from the prior quarterly base dividend level.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 17.5% due to these changes.
VGM ScoresAt this time, Cenovus has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cenovus has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerCenovus belongs to the Zacks Oil and Gas - Integrated - Canadian industry. Another stock from the same industry, Imperial Oil (IMO - Free Report) , has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Imperial Oil reported revenues of $9.07 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $1.41 for the same period compares with $1.75 a year ago.
Imperial Oil is expected to post earnings of $3.61 per share for the current quarter, representing a year-over-year change of +169.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.9%.
Imperial Oil has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Key Takeaways Cenovus' heavy oil production is tied to WCS, which typically trades below WTI prices.CVE expects more than 750 MBbls/D of heavy oil egress and conversion capacity by 2028.CVE uses pipeline access and refining assets to boost margins and support cash flows. Cenovus Energy Inc. (CVE - Free Report) is a Canadian integrated energy company with operations spanning the upstream and downstream sectors. While Cenovus benefits from the low-cost and long reserve life of its asset base, its upstream business could be affected by price volatility in global markets. Crude prices fluctuate heavily due to several factors, including supply-demand dynamics, geopolitical factors and more. Cenovus’ production primarily comes from its Canadian oil sands assets, which consist of heavy and bitumen-blend crude linked to the Western Canadian Select (“WCS”) pricing. WCS usually trades at a discount compared to the West Texas Intermediate (“WTI”) benchmark.
However, the company’s access to pipeline capacity and its downstream infrastructure provides a cushion against the risk of Canadian heavy oil price dislocations. Notably, the company has stated that it expects to have more than 750 thousand barrels per day (MBbls/D) of heavy oil egress and conversion capacity by 2028, supported by its Canadian and U.S. refining capacity, TMX access and future contracted U.S. pipeline capacity.
Access to midstream infrastructure allows CVE to move its heavy oil production to markets that support better pricing. Additionally, the strong reliability of its Canadian and U.S. refining operations enables it to process and upgrade the discounted heavy crude into higher-value refined products, including diesel and jet fuel. The integrated nature of the business allows CVE to capture higher margins across the value chain, from production to finished products. Cenovus is well-positioned to withstand pricing dislocations while preserving cash flows and maintaining profitability.
Other Canadian Integrated Energy CompaniesCanadian Natural Resources (CNQ - Free Report) is one of the largest independent energy companies in Canada, engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. Canadian Natural has set an ambitious production target for 2026, aiming for a total annual production range of 1,615 thousand barrels of oil equivalent per day (MBOE/d) to 1,665 MBOE/d. This target represents an approximately 4% increase in production compared with 2025.
Imperial Oil Limited (IMO - Free Report) is another leading integrated energy company headquartered in Canada. IMO’s operations span exploration and production, refining and a petrochemicals business. The company is a major Canadian oil sands producer and the largest jet fuel supplier in the country. Notably, the U.S. oil giant Exxon Mobil holds an approximately 71% stake in the Canadian operator.
CVE’s Price Performance, Valuation & EstimatesShares of CVE have jumped 118.5% over the past year compared with the 92.5% improvement of the composite stocks belonging to the industry.
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From a valuation standpoint, CVE trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.35X. This is above the broader industry average of 7.7X.
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The Zacks Consensus Estimate for CVE’s 2026 earnings hasn’t seen any revisions over the past seven days.
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CVE and IMO currently sport a Zacks Rank #1 (Strong Buy) each, while CNQ carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the latest close session, Cenovus Energy (CVE - Free Report) was down 5.27% at $28.22. The stock's performance was behind the S&P 500's daily loss of 2.65%. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
Prior to today's trading, shares of the oil company had gained 4.67% outpaced the Oils-Energy sector's loss of 3.06% and lagged the S&P 500's gain of 5.47%.
Analysts and investors alike will be keeping a close eye on the performance of Cenovus Energy in its upcoming earnings disclosure. On that day, Cenovus Energy is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 184.85%. Meanwhile, the latest consensus estimate predicts the revenue to be $9.57 billion, indicating a 7.53% increase compared to the same quarter of the previous year.
CVE's full-year Zacks Consensus Estimates are calling for earnings of $3.15 per share and revenue of $38.19 billion. These results would represent year-over-year changes of +104.55% and +7.42%, respectively.
Any recent changes to analyst estimates for Cenovus Energy should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 38.1% higher. Right now, Cenovus Energy possesses a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Cenovus Energy currently has a Forward P/E ratio of 9.45. For comparison, its industry has an average Forward P/E of 10.82, which means Cenovus Energy is trading at a discount to the group.
The Oil and Gas - Integrated - Canadian industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 8, finds itself in the top 4% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Key Takeaways CVE shares skyrocketed 109.2% in a year, outpacing CNQ, SU and the sub-industry's 79.1% surge.CVE's MEG deal adds oil sands assets; the 2026 synergy target is now expected to top C$150M.CVE growth projects are advancing, with Narrows Lake above 65,000 bpd and more due in 2026. Over the past year, Cenovus Energy Inc. (CVE - Free Report) shares have skyrocketed 109.2%, significantly outperforming Canadian Natural Resources Limited's (CNQ - Free Report) 46.4% gain and Suncor Energy's (SU - Free Report) 71% surge. During the same period, the stock has surpassed the sub-industry’s 79.1% rally. The company has emerged as one of the strongest energy players.
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The company's systematic strategic planning, expanding production profile and productive acquisition integration have strengthened its position within the Canadian energy space. As CVE approaches a potential turning point, investors are increasingly assessing whether the stock can continue its upward trajectory based on its underlying fundamentals.
To answer that question, it is important to look beyond the recent share price appreciation and evaluate the operating drivers supporting Cenovus' momentum.
Further reinforcing investor confidence, CVE has surpassed the Zacks Consensus Estimate in the past four quarters, delivering an average earnings surprise of 50.8%. In a sector often characterized by commodity-driven volatility, that level of earnings consistency stands out.
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Key Drivers Supporting CVE StockSuccessful Integration of MEG Energy Acquisition: One of Cenovus’ major recent catalysts has been the successful integration of the MEG Energy acquisition, completed in late 2025 for C$7.1 billion. The transaction added strategically valuable oil sand assets adjacent to Cenovus' Christina Lake operations.
The company noted that redevelopment wells at Christina Lake North are already outperforming original expectations. As a result, Cenovus expects to exceed its initial 2026 synergy target of C$150 million and continues to project annual synergies of more than C$400 million by 2028.
The acquisition significantly enhances the company's long-term outlook by lowering production costs and expanding production capacity. It also strengthens Cenovus' reserve base and further solidifies its position among Canada's leading oil sand producers.
Strong Progress on Growth Projects: Several major growth projects continued to advance in the first quarter of 2026. At Narrows Lake, production exceeded 65,000 barrels per day from the first four well pads, outperforming internal expectations. Cenovus expects output to increase to 80,000 barrels per day later in 2026.
The company also completed construction and commissioning activities at the West White Rose Project and commenced offshore drilling operations. First oil is expected in the third quarter of 2026, reaching a milestone for the development.
Cenovus continues to advance several growth initiatives, including the Christina Lake North expansion, Sunrise optimization, Foster Creek optimization and West White Rose projects. These developments support management's objective of exceeding 1 million BOE/d of upstream production by 2028.
Higher Oil Prices Could Boost Cenovus' Cash Flow Generation: Recent trends in crude markets have become increasingly favorable for upstream energy producers. WTI crude has recently traded near the $90-per-barrel level, well above the year-ago levels.
Cenovus' production portfolio consists largely of heavy and bitumen-blend crude sourced from Canada's oil sands. While its realized pricing remains tied to Western Canadian Select (“WCS”), which typically trades at a discount to WTI due to quality and transportation factors, higher benchmark oil prices generally support stronger realized WCS pricing. As a result, a sustained period of elevated crude prices could improve upstream netbacks, strengthen free cash flow generation and enhance financial flexibility.
In addition, Cenovus' integrated business model provides diversification through its downstream refining operations, helping balance performance across different commodity market environments.
Estimate Revisions & ValuationsOver the past 30 days, analyst sentiment toward Cenovus has improved. The Zacks Consensus Estimate for the company's earnings per share has moved higher for 2026 and 2027, reflecting growing confidence in its operational outlook and earnings potential.
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From a valuation standpoint, Cenovus continues to trade at attractive levels relative to the industry and key peers. CVE currently carries a trailing 12-month EV/EBITDA multiple of 7.11X, modestly below the broader industry average of 7.34X.
The stock also trades at a significant discount to Canadian Natural Resources, which currently commands an EV/EBITDA multiple of 9.86X. While Suncor Energy trades at 6.66X, Cenovus offers a stronger growth profile, supported by acquisition synergies, expanding production and multiple development projects nearing completion.
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Should Investors Consider CVE Stock Now?Cenovus appears well-positioned to deliver long-term value through a combination of strong operational execution, visible production growth and improving cash flow generation. The successful integration of MEG Energy, steady progress across major development projects and favorable commodity pricing collectively strengthen the company's earnings outlook.
The Zacks Rank #1 (Strong Buy) stock continues to trade at a valuation discount relative to the broader industry and certain key peers. As a result, investors may want to consider buying CVE at the current levels. The stock offers exposure to a high-quality Canadian energy producer with multiple growth catalysts while still trading at an attractive valuation.
You can see the complete list of today’s Zacks #1 Rank stocks here.
CompaniesCALGARY, June 9 (Reuters) - Cenovus Energy CEO Jon McKenzie said Tuesday Alberta's proposed 1 million barrel-per-day pipeline to British Columbia's Pacific coast cannot be financed by the private sector under Canada's current regulatory regime.
McKenzie, who heads one of Canada's largest oil sands companies, said at the Global Energy Show in Calgary that the country's industrial carbon pricing system makes Canadian oil uncompetitive and inhibits the production growth required to fill the proposed pipeline.
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
Reporting by Amanda Stephenson in Calgary; Editing by Franklin Paul
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Key Takeaways CVE increased its quarterly base dividend by 10% to 22 cents per share, marking six straight years of growth.Cenovus returned $1.0B to its shareholders through buybacks, dividends and redemptions in Q1 2026.CVE's key projects are expected to enhance its production, cash flow and future shareholder returns. Cenovus Energy Inc. (CVE - Free Report) is a leading Canadian integrated energy company with a diversified asset portfolio spanning oil sands, conventional oil and gas assets, offshore operations and refining facilities across Canada and the United States. CVE’s upstream operations generate the majority of its revenues by extracting crude oil, natural gas liquids and natural gas. The integrated giant’s downstream business generates revenues by refining these resources into petroleum products like gasoline and diesel.
Cenovus generates enough revenues to return capital to its shareholders through dividends and share buybacks. In the first quarter of 2026, CVE increased its quarterly base dividend by 10% to 22 cents per share, marking six consecutive years of dividend growth. During the same period, the company returned approximately $1.0 billion to its shareholders through dividends, share buybacks and preferred share redemptions. Since 2021, Cenovus has repurchased about 13% of its outstanding shares.
Cenovus plans to boost its future cash flows through several high-return growth projects. Key initiatives include the Christina Lake North expansion, the West White Rose offshore project, the Foster Creek optimization project and the Sunrise expansion. These projects are expected to boost production, cash flow and shareholder returns over the long term.
XOM & CVX Focus on Returning Capital to Its ShareholdersExxon Mobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) are other integrated giants that generate enough revenues to return capital to their shareholders.
ExxonMobil distributed $9.2 billion to shareholders, including $4.3 billion in dividends and $4.9 billion through stock repurchases. This strong capital return program keeps XOM on pace with its plan to repurchase $20 billion of shares in 2026.
Chevron rewarded shareholders with a total of $27.1 billion through 2025, including $12.1 billion in share repurchases and $2.2 billion related to the acquisitions of Hess Corporation. This strong shareholder return program marked the company's 38th consecutive year of annual dividend increases. Continuing this trend into early 2026, CVX paid out $3.5 billion in common stock dividends and repurchased $2.5 billion worth of shares during the first quarter.
CVE’s Price Performance, Valuation & EstimatesCenovus shares have gained 96.7% over the past year compared with 66.7% growth of the industry.
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From a valuation standpoint, CVE trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 7.03X. This is below the broader industry average of 7.21X.
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The Zacks Consensus Estimate for CVE’s 2026 earnings has remained constant over the past seven days.
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CVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways LYB, SBLK, CVE and NEXA qualified a screen for high earnings yield and buy-rated value stocks.Earnings yield above 10% was paired with EPS growth, liquidity and price filters to find value picks.The four picks show projected 2026 sales and EPS growth, with estimates rising over recent weeks. Investors are navigating a market environment marked by persistent uncertainty. Geopolitical tensions in the Middle East, the lack of a lasting ceasefire, and concerns about the broader economic outlook continue to weigh on sentiment. Weakness in the technology sector and signs of high inflation add to the concerns. As a result, heightened volatility and shifting investor expectations have made stock selection increasingly important.
In such an environment, value investing can offer a disciplined approach to building long-term wealth. Rather than chasing market momentum or speculative trends, value investors focus on identifying companies whose stock prices do not fully reflect their underlying business fundamentals. The goal is to purchase quality businesses at a discount to their intrinsic value and benefit when the market eventually recognizes their true worth.
With value investing, investors look beyond short-term market noise and focus on a company’s earnings power, financial strength and long-term prospects. Value investors can consider stocks such as LyondellBasell Industries (LYB - Free Report) , Star Bulk Carriers (SBLK - Free Report) , Cenovus Energy (CVE - Free Report) and Nexa Resources (NEXA - Free Report) , which have high earnings yield.
Unlock Portfolio Value With Earnings Yield MetricOne metric widely used by value investors to identify potentially undervalued stocks is earnings yield. Calculated by dividing a company’s annual earnings per share by its current stock price, earnings yield indicates the amount of earnings generated for every dollar invested in a stock. Generally, a higher earnings yield suggests a stock may be undervalued relative to its earnings potential, while a lower earnings yield can indicate a richer valuation.
Earnings yield also provides a useful way to compare stocks with fixed-income investments such as bonds. When a stock’s earnings yield exceeds prevailing bond yields, it may offer a more attractive return potential, making it a valuable tool for investors searching for opportunities in an uncertain market.
Setting the Right FiltersWe have set an Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:
Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.
Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.
Current Price greater than or equal to $5.
Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our PicksHere we have discussed four of the 31 stocks that qualified the screening:
LyondellBasell is among the leading plastics, chemical and refining companies globally. It stands out due to its strong market position and cost advantages. The company benefits from North America's favorable natural gas environment, which supports lower production costs and stronger margins. It is expanding its manufacturing footprint through advanced facilities on the U.S. Gulf Coast that utilize proprietary technologies. Strategic moves, including the acquisition of A. Schulman and a joint venture with Sasol in Louisiana have strengthened its presence in higher-value polymer solutions. Meanwhile, solid cash generation and LyondellBasell’s Cash Improvement Plan should support shareholder returns through dividends and other capital allocation initiatives.
The Zacks Consensus Estimate for LYB’s 2026 sales and EPS implies year-over-year growth of 12% and 414%, respectively. EPS estimates for the current and next year have moved up by $4.11 and $2.66, respectively, over the past 60 days. LyondellBasell currently sports a Zacks Rank #1 and has a Value Score of A.
Star Bulk is a prominent operator in the dry bulk shipping industry. Demand is supported by rising grain exports, strong bauxite shipments from Guinea, and longer-haul Atlantic trade routes that boost ton-mile demand. The company is strengthening its earnings power through fleet modernization, fuel-efficiency upgrades and the delivery of new high-specification vessels. Star Bulk also benefits from one of the industry's lowest cost structures, supported by its scale and operational efficiencies. With a policy of distributing 100% of free cash flow, a strong balance sheet, and management’s expectations of favorable market conditions over the next 12-18 months, the company remains well-positioned to create shareholder value.
The Zacks Consensus Estimate for SBLK’s 2026 sales and EPS implies year-over-year growth of 30% and 313%, respectively. EPS estimates for the current and next year have moved up by $1.49 and 74 cents, respectively, over the past 60 days. Star Bulk currently sports a Zacks Rank #1 and has a Value Score of A.
Cenovus is a leading integrated energy company with a portfolio of long-life oil sands and offshore assets. The company is executing a multi-year growth strategy supported by projects such as Christina Lake North, West White Rose, Narrows Lake, Foster Creek, Lloydminster, and Sunrise, which are expected to drive meaningful production growth. Cenovus also benefits from its integrated upstream and downstream operations, helping offset commodity price volatility through refining and upgrading earnings. The acquisition of MEG Energy further strengthens its oil sands footprint while creating opportunities for operational synergies, cost savings, and production optimization, supporting higher output, stronger cash flows, and improved profitability in the years ahead.
The Zacks Consensus Estimate for CVE’s 2026 sales and EPS implies year-over-year growth of 7% and 105%, respectively. EPS estimates for the current and next year have moved up by $1.43 and $1.02, respectively, over the past 60 days. Cenovus currently sports a Zacks Rank #1 and has a Value Score of B.
Nexa is one of the world's largest zinc producers and is benefiting from a favorable environment for zinc, silver, and copper prices. The company delivered strong operational momentum in the latest quarter, driven by higher production, improving mine performance, and record output at its Aripuanã operation. Growth projects such as the Cerro Pasco Integration are expected to extend mine life and enhance profitability, while ongoing exploration continues to expand reserves and resources. Nexa should also benefit from increased exposure to silver prices following the reduction of its Cerro Lindo streaming agreement, supporting stronger cash generation, balance sheet improvement and long-term shareholder value.
The Zacks Consensus Estimate for NEXA’s 2026 sales and EPS implies year-over-year growth of 14% and 214%, respectively. EPS estimates for the current and next year have moved up by 6 cents and 4 cents, respectively, over the past 30 days. Nexa currently sports a Zacks Rank #1 and has a Value Score of A.
