Track market-moving stories before they get noisy

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Caterpillar (CAT - Free Report) .

Caterpillar currently has an average brokerage recommendation (ABR) of 1.88, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.88 approximates between Strong Buy and Buy.

Of the 25 recommendations that derive the current ABR, 14 are Strong Buy, representing 56% of all recommendations.

Brokerage Recommendation Trends for CAT

Check price target & stock forecast for Caterpillar here>>>

While the ABR calls for buying Caterpillar, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is CAT Worth Investing In?Looking at the earnings estimate revisions for Caterpillar, the Zacks Consensus Estimate for the current year has increased 1.9% over the past month to $24.68.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Caterpillar. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Caterpillar may serve as a useful guide for investors.

Caterpillar (CAT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this construction equipment company have returned +0.3%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Manufacturing - Construction and Mining industry, which Caterpillar falls in, has gained 1.9%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Caterpillar is expected to post earnings of $6.19 per share, indicating a change of +31.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.2% over the last 30 days.

The consensus earnings estimate of $24.68 for the current fiscal year indicates a year-over-year change of +29.5%. This estimate has changed +1.7% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $30.55 indicates a change of +23.8% from what Caterpillar is expected to report a year ago. Over the past month, the estimate has changed +2.3%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Caterpillar.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Caterpillar, the consensus sales estimate for the current quarter of $19.08 billion indicates a year-over-year change of +15.2%. For the current and next fiscal years, $76.5 billion and $84.29 billion estimates indicate +13.2% and +10.2% changes, respectively.

Last Reported Results and Surprise HistoryCaterpillar reported revenues of $17.42 billion in the last reported quarter, representing a year-over-year change of +22.2%. EPS of $5.54 for the same period compares with $4.25 a year ago.

Compared to the Zacks Consensus Estimate of $16.44 billion, the reported revenues represent a surprise of +5.95%. The EPS surprise was +21.76%.

Over the last four quarters, Caterpillar surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Caterpillar is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Caterpillar. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Caterpillar (NYSE:CAT | CAT Price Prediction) at $909.81 is a hold.

Caterpillar shares are retreating from recent levels. Why is CAT stock dropping? Oil prices jumped sharply after new U.S. strikes in the Strait of Hormuz reignited supply concerns. Higher energy costs raised fears that inflation could stay elevated, which in turn could keep interest rates high and weigh on demand for heavy equipment.

West Texas Intermediate climbed 3.3% to about $91.07 per barrel and Brent rose 2.9% to roughly $94.10. That move pushed traders out of many economically sensitive names, including Caterpillar.

Markets React To Trump's Escalation Toward IranThe downturn accelerated after President Donald Trump issued a series of forceful statements about Iran early Wednesday. He described Iran as a failing state and said the country would face consequences for delaying nuclear negotiations. He also claimed Iran's military had been weakened and highlighted a U.S. naval blockade that he said had cut off the country's ability to conduct business.

Equity futures fell sharply as traders braced for more volatility tied to the conflict.

Inflation Data Adds Another HeadwindFresh macro data added to the pressure. The annual inflation rate rose from 3.8% to 4.2% in May, matching expectations but marking the highest reading since April 2023. Higher inflation increases the risk that interest rates stay elevated, which can typically weigh on industrial demand.

Momentum readings lean cautious. MACD sits under its signal line and the histogram is negative, which signals that buying pressure has cooled compared to the prior advance. When MACD stays below the signal line, rallies often lose traction unless buyers can shift momentum back in their favor.

Nearby levels help frame the next move. Key resistance is 931.50, which lines up with a recent high where rebounds have slowed, and key support is 853.50, which sits close to current price and has attracted buyers recently.

CAT Shares Are FallingCAT Price Action: Caterpillar shares were down 6.20% at $858.00 at the time of publication on Wednesday. The stock is approaching its 52-week high of $946.83, according to Benzinga Pro.

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In the latest trading session, Caterpillar (CAT - Free Report) closed at $858.02, marking a -6.2% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.62%. At the same time, the Dow lost 1.87%, and the tech-heavy Nasdaq lost 1.98%.

The stock of construction equipment company has risen by 0.28% in the past month, lagging the Industrial Products sector's gain of 0.72% and overreaching the S&P 500's loss of 0.03%.

Investors will be eagerly watching for the performance of Caterpillar in its upcoming earnings disclosure. On that day, Caterpillar is projected to report earnings of $6.19 per share, which would represent year-over-year growth of 31.14%. Meanwhile, the latest consensus estimate predicts the revenue to be $19.08 billion, indicating a 15.17% increase compared to the same quarter of the previous year.

CAT's full-year Zacks Consensus Estimates are calling for earnings of $24.68 per share and revenue of $76.5 billion. These results would represent year-over-year changes of +29.49% and +13.19%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Caterpillar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.68% higher within the past month. Caterpillar is currently a Zacks Rank #2 (Buy).

With respect to valuation, Caterpillar is currently being traded at a Forward P/E ratio of 37.06. This indicates a premium in contrast to its industry's Forward P/E of 16.28.

It is also worth noting that CAT currently has a PEG ratio of 1.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Manufacturing - Construction and Mining industry held an average PEG ratio of 1.55.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CAT in the coming trading sessions, be sure to utilize Zacks.com.

Caterpillar stock price has pulled back in the past few days, moving from the year-to-date high of $947 on June 4 to the current $856. This retreat happened after it formed the risky double-top pattern on the daily chart. 

Valuation concerns remain amid the AI boom Caterpillar, a top industrial company known for making large machines for the construction and mining industries, has become one of the top gainers in the United States in the past few years. Its stock has jumped by over 300% in the last five years, bringing its market capitalization to nearly $400 billion.

This growth happened because of its positioning in the artificial intelligence industry, where it has become a key provider of power solutions to data centers. This trend will continue in the coming years as companies continue launching more data centers in the United States and other countries.

The data center business has made it a growth company. Its most recent numbers showed that its total sales rose by 22% in the last quarter to $7 billion. Its profit jumped to $1.45 billion, even after the tariff impact.

The company’s construction business also continued growing, moving to $7.2 billion from $5.2 billion in the same period a year earlier. Like the data center business, this segment made over $1.53 billion in profit, up from $1 billion a year earlier. The management pointed to the rising sales and pricing.

The resource segment was its worst performer, with its sales rising modestly to $3.8 billion and its segment profit tumbling by 39% to $378 million. It blamed the profit dip to Donald Trump’s tariffs and higher manufacturing costs. 

Caterpillar’s financial segment also experienced higher revenues. The management believes that the growth trajectory will continue in the coming years. At the same time, it continued returning cash to shareholders through a combination of dividends and buybacks. It returned $5.7 billion in the first quarter.

Growth to continue, but valuation concerns remainWall Street analysts are optimistic that the company’s growth will be steady over time. The average estimate is that its revenue will grow by 12.45% this year, followed by 10% in the following year. 

Still, the main concern is that Caterpillar has become highly overvalued. Its forward price-to-earnings (PE) ratio has jumped to 38, twice its five-year average. Also, the forward PEG ratio of 2.12 is higher than the sector average of 1.69 and the five-year average of 1.78. 

These numbers are much higher than those of some of the fastest-growing companies in the United States. For example, Nvidia has a forward price-to-earnings ratio of 23 despite its strong growth momentum. 

CAT stock chart | Source: TradingView

The daily chart shows that the CAT stock price has pulled back in the past few days, mirroring the performance of the broader equity market. This retreat happened after it formed a double-top pattern at $930 and a neckline at $846. A double-top is a common bearish reversal sign in technical analysis.

This pattern has a height of $85. Subtracting this height from the neckline of $846 gives a target price of $760, which is about 10% below the current level. 

Key Takeaways CAT lifted its quarterly dividend 8% to $1.63, extending its streak to 32 straight years.In Q1 2026, CAT spent $5B on buybacks and $700M on dividends; operating cash flow was $1.9B.CAT posted Q1 revenues of $17.4B ( 22% YoY) and ended with a record $62.7B backlog. Caterpillar (CAT - Free Report) continues to reinforce its reputation as a reliable income-generating industrial stock with the announcement of an 8% increase in its quarterly dividend to $1.63 per share. The latest hike reflects management’s confidence in its cash-generating capabilities and long-term growth prospects, while strengthening Caterpillar’s track record of rewarding shareholders through economic cycles.

The increase marks Caterpillar’s 32nd consecutive year of dividend growth. The company has paid a cash dividend every year since its formation and has distributed quarterly dividends since 1933. CAT has been a member of the S&P 500 Dividend Aristocrats Index since 2019. 

The revised annualized dividend of $6.52 implies a yield of 0.76%, higher than the manufacturing - construction and mining industry average of 0.67%. CAT’s current payout ratio of 29.16% is also higher than the industry’s 28.92%. Its current dividend-to-free-cash-flow ratio stands at 0.32, reflecting a healthy and sustainable dividend profile.

Over the past five years, Caterpillar has increased its dividend at an annualized rate of 8.2%, supported by robust free cash flow generation. During the first quarter of 2026 alone, Caterpillar deployed $5 billion toward share repurchases and $700 million toward dividends. Enterprise operating cash flow was $1.9 billion in the first quarter, and the company ended the quarter with $4.1 billion of cash.

The company remains committed to returning substantially all Machinery, Power & Energy (MP&E) free cash flow to shareholders over time through a combination of dividends and share repurchases.

Operationally, Caterpillar's business momentum has improved significantly in recent quarters. First-quarter 2026 revenues of $17.4 billion represented a 22% year-over-year increase, with growth largely fueled by a $2.3 billion rise in volumes. Higher dealer inventory levels and stronger end-user demand contributed to volume gains across all three operating segments. CAT ended the quarter with a record backlog of $62.7 billion. 

For 2026, Caterpillar expects low double-digit year-over-year revenue growth. CAT’s previous expectation was growth near the upper end of its long-term 5-7% revenue CAGR target. Management also raised its full-year 2026 expectation for MP&E free cash flow to be higher than 2025. Its latest dividend increase reinforces confidence in its long-term earnings and cash-flow outlook. 

Favorable trends in construction activity, commodity demand, data center investments and energy-transition projects continue to support growth opportunities. Caterpillar’s expanding aftermarket services business, known for its high margins, further strengthens its earnings profile. While tariffs and broader macroeconomic uncertainties remain potential headwinds, Caterpillar appears well-positioned to sustain shareholder returns and deliver long-term value creation.

A Look at Some Other Dividend-Paying Industrial StocksIllinois Tool Works Inc. (ITW - Free Report) , a multi-industrial manufacturing leader, is also a member of the S&P 500 Dividend Aristocrats Index. The company has raised its dividend for 62 years. In August 2025, Illinois Tool Works raised its dividend by 7% to the current quarterly payout of $1.61. The company generally raises the dividend in August.
Illinois Tool Works has a five-year dividend growth of 7.2% and a current yield of 2.6%. Illinois Tool Works has a payout ratio of 59.8%. ITW has a dividend/free cash flow ratio of 0.68.

Pentair plc (PNR - Free Report) , a provider of various water solutions, has a current dividend yield of 1.45%. Pentair announced an 8% dividend hike on Dec. 15, 2025, and the raised dividend of 27 cents per share was paid in February 2026. This marked the 50th consecutive year that Pentair has increased its dividend. Pentair has a payout ratio of 21% and a five-year dividend growth of 5.8%. Pentair’s dividend/free cash flow ratio stands at 0.25.

CAT’s Price Performance, Valuation & EstimatesCAT shares have gained 137.1% over the past year compared with the industry’s 131.4% growth. In comparison, the Zacks Industrial Products sector has gained 25%. The S&P 500 has moved up 25.9% in the same time frame.

Image Source: Zacks Investment Research

Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 31.38X compared with the industry average of 31.57X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CAT’s 2026 earnings indicates year-over-year growth of 29.5%. The consensus mark for revenues implies an increase of 13.2% for the year. The earnings estimate for 2027 indicates 23.8% growth, with revenues rising 10.2%.

Image Source: Zacks Investment Research

Earnings estimates for Caterpillar for both 2026 and 2027 have moved up over the past 60 days, as shown in the chart below.

Image Source: Zacks Investment Research

Caterpillar stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On May 26, 2026, Newmont Corp NEM shares rose 3.7% to a current price of $111.61. This price is within a 52-week range of $51.80 to $134.88, showing significant volatility over the past year.

GF Value™ verdict: Current price is $111.61, compared to GF Value™ of $71.44, indicating that the stock is 56.2% overvalued.GF Score™ of 76/100 suggests that NEM is above average in terms of its overall quality and performance metrics.Most notable signal: Insiders have sold $6.9M worth of stock in the last 3 months, indicating a lack of buying interest from management. Is NEM Overvalued or Undervalued? Newmont Corp NEM is currently trading at $111.61, which is significantly above its GF Value™ estimate of $71.44, suggesting the stock is 56.2% overvalued. This valuation presents a considerable margin of safety for potential investors, as the current price does not adequately reflect the intrinsic value derived from the company's financial metrics and growth potential. According to the GF Valuation label, NEM is classified as significantly overvalued, which highlights the risk that investors face if they enter at current price levels. A significant overvaluation can lead to a correction in the stock price, should market sentiment shift or financial performance not meet expectations.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation, investors should be cautious, as entering a position in a significantly overvalued stock may lead to potential losses if the market corrects.

How Does NEM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.5x 17.9x Forward P/E 10.7x - Newmont Corp's current P/E (TTM) of 14.5x is 19% below its 5-year median P/E of 17.9x. The forward P/E of 10.7x suggests that analysts expect a recovery in earnings, but this analysis aligns with the GF Value™ verdict that indicates the stock is overvalued. The lower P/E ratios indicate that, while earnings may improve, the current price does not reflect a compelling investment opportunity when compared to historical valuation levels.

What Does NEM's GF Score™ Tell Us? Metric Rating GF Score™ 76/100 Financial Strength 8/10 Profitability 7/10 Growth 8/10 Valuation 3/10 Momentum 3/10 The GF Score™ of 76/100 indicates that Newmont Corp is above average in terms of its overall quality and investment potential. The company demonstrates strong financial strength with a rating of 8/10, and its growth potential is also rated favorably at 8/10. However, the valuation and momentum ranks of 3/10 signal weakness in these areas, highlighting the challenges NEM faces regarding its current price compared to intrinsic value and recent performance trends.

What Are Insiders Doing with NEM Stock? Insider activity at Newmont Corp has shown a significant trend in recent months, with insiders selling $6.9 million worth of shares in the last three months, without any notable buying activity. This pattern may suggest a lack of confidence from management regarding the stock's current valuation, as they are choosing to sell rather than accumulate shares at this price level. The absence of insider buying raises a red flag for potential investors, as it may indicate that those with the most insight into the company's operations are not optimistic about short-term price appreciation.

What This Means for Investors Based on the analysis, Newmont Corp NEM is currently overvalued according to the GF Value™ estimate. With a significant gap between the current price and the intrinsic value, investors should approach this stock with caution, considering the risks associated with entering a position at such elevated valuations.

For the complete analysis, visit the Newmont Corp NEM 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 NEM's GF Score™?

NEM's GF Score™ is 76/100, indicating that the stock is above average in terms of quality and performance metrics.

Is NEM overvalued or undervalued?

NEM is currently overvalued, with a GF Value™ of $71.44 compared to its current price of $111.61.

What is NEM's P/E ratio?

NEM's P/E (TTM) is 14.5x, which is 19% below its 5-year median P/E of 17.9x, indicating that it is trading below its historical valuation.

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].

Toronto, Ontario--(Newsfile Corp. - May 29, 2026) - Oreterra Metals Corp. (TSXV: OTMC) (OTCID: OTMCF) (FSE: D4RO) (WKN: A421RQ) ("Oreterra" or the "Company") is pleased to announce that the TSX Venture Exchange has conditionally accepted for filing documentation pertaining to an arms-length amending agreement dated April 27, 2026 (the "Agreement"), between the Company and an arm's length party: Enduro Metals Corporation (the "Optionee"), a TSXV Listed Issuer. Pursuant to the Agreement, the Optionee will have an option to acquire up to 50% of the net smelter returns royalty interest held by the Company in the Optionee's Newmont Lake Project (the "NSR"), located adjacent to Oreterra's Trek-Andrei property in BC's Golden Triangle.

Closing of the transaction remains subject to TSX Venture Exchange final approval.

About the Agreement:

In order to exercise the option on the NSR, the Optionee must issue 3,900,000 common shares to the Company and make aggregate payments of $550,000 to the Company over a period of two years (the "Term"), of which $175,000 is due within 3 months of closing, and payments of $250,000 may be payable in cash or common shares of the Optionee during the Term (at the Optionee's discretion). Further, potential future consideration involves: (i) a $500,000 cash payment upon delivery of a maiden NI 43-101 compliant resource estimate (of which up to $300,000 may be satisfied through the issuance of common shares of the Optionee); (ii) a $1,750,000 cash payment and a $1,750,000 advance royalty payment upon completion of the first Feasibility Study in respect of the Property; (iii) a $10,000,000 cash advance royalty payment upon a decision to proceed toward mine permitting; and (iv) a one-time payment of $8,000,000 prior to commencement of extraction to buy back 50% of the existing 2% NSR.

Upon exercise of the option, the Company will retain a 1.0% Net Smelter Return royalty on the Property.

About Oreterra Metals Corp.

Oreterra Metals Corp. is a TSXV-listed mineral exploration company focused primarily on copper, gold and silver. The Company holds several wholly-owned porphyry copper-gold prospects in British Columbia's Golden Triangle, the most significant of which is the newly-identified Trek South prospect located to the southeast of Teck-Newmont's Galore Creek project, currently undergoing pre-feasibility studies. Following a highly successful $9.7 million financing closed in March, a maiden two-phase, approximately 10,000 metre drill program at Trek South is now fully funded, for completion this summer. Drilling will test a 1.6 km wide zone of intense porphyry-style alteration, mineralization and underlying coincident strong IP, MT and magnetic anomalies exposed by recent glacial retreat. In addition, the first significant exploration work since 2007 is now planned for Oreterra's JW porphyry prospect, located to the northwest of the Galore Creek deposits.

Additional wholly-owned interests include two former producers in Nevada: the Kinkaid claims in the Walker Lane trend covering numerous shallow Au-Cu-Ag workings over what is believed to be one or more porphyry centres, and the Scossa mine property in the Sleeper trend which is a former high-grade gold producer. The Company also holds a 100% interest in the large-scale Lundmark-Akow Lake Au-Cu property adjacent to the northwest of the Musselwhite Mine, where past drilling by the Company returned highly encouraging, broad VMS-style Au-Cu intersections. Oreterra also retains an ongoing interest in several properties including a 2% NSR on McEwen Mining's Hislop gold property in Ontario and a 2% NSR on Enduro Metals' Newmont Lake Au-Cu-Ag property in BC. Technical presentations on each of the Kinkaid, Scossa and Lundmark-Akow Lake properties, authored by J. Biczok, P.Geo, are available at https://www.oreterra.com/investors.

For further information please visit www.oreterra.com or contact:

 
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299329

Source: Oreterra Metals Corp.

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Newmont Corporation (NEM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this gold and copper miner have returned -0.1%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Mining - Gold industry, which Newmont falls in, has lost 0.2%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Newmont is expected to post earnings of $2.30 per share for the current quarter, representing a year-over-year change of +60.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.

The consensus earnings estimate of $9.72 for the current fiscal year indicates a year-over-year change of +41.1%. This estimate has changed +5.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.86 indicates a change of +11.7% from what Newmont is expected to report a year ago. Over the past month, the estimate has changed +3.6%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Newmont.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Newmont, the consensus sales estimate of $6.19 billion for the current quarter points to a year-over-year change of +16.4%. The $27.25 billion and $29.69 billion estimates for the current and next fiscal years indicate changes of +20.2% and +9%, respectively.

Last Reported Results and Surprise HistoryNewmont reported revenues of $7.31 billion in the last reported quarter, representing a year-over-year change of +45.8%. EPS of $2.9 for the same period compares with $1.25 a year ago.

Compared to the Zacks Consensus Estimate of $6.36 billion, the reported revenues represent a surprise of +14.88%. The EPS surprise was +40.1%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Newmont is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Newmont. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Newmont Corporation delivered its strongest quarter ever, generating $3.8B in operating cash flow and $5.2B in adjusted EBITDA despite operational challenges. NEM is aggressively returning capital to shareholders, with $2.7B in buybacks and dividends and a newly doubled $6B share repurchase authorization. Management projects higher production beyond 2026, while current valuation remains attractive at ~10x forward earnings and a PEG well below 1.

Newmont Corporation is rated a buy, leveraging strong free cash flow, robust gold reserves, and an aggressive share repurchase program. NEM's Q1 2026 revenue surged 45.85% YoY, driven by higher gold prices despite a 10% production decline, with FCF up 160.91% YoY. Operational efficiency is improving as NEM divests lower-yield assets, focuses on high-return mines, and maintains a low debt/FCF ratio of 0.60.

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 also includes the Zacks Style Scores.

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 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, 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 investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing 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.

#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.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

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.

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.

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: Newmont Corporation (NEM - Free Report) Colorado-based Newmont Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. As of Dec 31, 2025, Newmont had attributable gold reserves of 118.2 million ounces and resources of 148.7 million ounces. Its attributable gold production for 2025 was around 5.89 million ounces.

NEM 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. NEM has a Growth Style Score of A, forecasting year-over-year earnings growth of 43.8% for the current fiscal year.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.37 to $9.91 per share. NEM boasts an average earnings surprise of +33.6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, NEM should be on investors' short list.

Shares of Newmont (NEM +2.71%) slumped on Wednesday, tanking 5.9% by the market's closing.

Gold prices are falling, but there's a reason why the gold stock is falling even faster.

Image source: Getty Images.

Why is gold falling so much? U.S. inflation topped 4% in May for the first time since April 2023, according to the U.S. Bureau of Labor Statistics. Rising oil and gas prices amid escalating Middle East tensions were largely to blame for high inflation.

Higher inflation makes Federal Reserve interest rate cuts less likely. This hurts precious metals like gold, which lose their appeal compared to interest-bearing bonds when interest rates stay elevated.

Gold prices have already dropped substantially in recent weeks. They extended their decline on Wednesday, falling more than 4% to below $4,100 per ounce, or levels last seen in November 2025.

Today's Change

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2.64

Current Price

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100.23

Gold producers like Newmont, which generate revenue and profits from extracting and selling gold, take the biggest beating when gold prices fall.

Why is Newmont stock crashing? Newmont stock has tumbled 20% in just one month, as of this writing. While commodity stocks are notoriously volatile, the drop comes despite Newmont's robust operational showing as the largest U.S. gold producer. It generated a record quarterly free cash flow of $3.1 billion in the first quarter and doubled its share buyback program, authorizing an additional $6 billion.

The problem is that Newmont expects 2026 gold production to fall to 5.3 million ounces from 5.7 million ounces in 2025 because of planned sequencing at two mines and lower expected grades at another. Moreover, it expects its all-in-sustaining costs to climb significantly this year.

This combination leaves the gold stock particularly vulnerable to gold prices now. If prices fall further, the trifecta of lower output, higher costs, and weaker pricing could deeply hurt its profits and cash flows.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

On June 11, 2026, Newmont Corp NEM shares rose 5.2% today, bringing the current price to $97.59. Despite this gain, the stock has faced challenges recently, with a 1-week decline of 9.9% and a 1-month drop of 18.9%. Over the past year, NEM has seen an impressive increase of 85.0%, although it has fluctuated within a 52-week range of $52.42 to $134.88.

GF Value™ verdict: The current price of $97.59 is 35.3% above the GF Value™ estimate of $72.14, indicating that the stock is overvalued.GF Score™: NEM has a GF Score™ of 82/100, which suggests it is a strong investment based on key fundamental metrics.Most notable signal: Insider activity has shown that insiders sold $5.5 million worth of shares in the last 3 months, with no buying activity reported. Is NEM Overvalued or Undervalued? Newmont Corp NEM is currently trading at $97.59, significantly above its GF Value™ estimate of $72.14, which indicates a 35.3% overvaluation. This suggests that the stock may be priced beyond its intrinsic value, posing a risk for investors looking for a margin of safety. The GF Valuation label categorizes NEM as "Significantly Overvalued," reinforcing the notion that the current market price does not adequately reflect the company's underlying value.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the substantial difference between the current price and the GF Value™, potential investors may need to exercise caution, as purchasing overvalued shares could lead to disappointing returns if the price adjusts downward in the future.

How Does NEM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 12.7x 17.6x Forward P/E 9.6x N/A Currently, Newmont Corp's P/E (TTM) of 12.7x is 28% below its 5-year median P/E of 17.6x, indicating that the stock is trading at a lower valuation compared to its historical average. The forward P/E of 9.6x further suggests that analysts anticipate improved earnings in the future. This P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that NEM is currently overvalued, as the market price remains high despite the lower P/E ratio.

What Does NEM's GF Score™ Tell Us? Metric Rating GF Score™ 82/100 Financial Strength 8/10 Profitability 7/10 Growth 9/10 Valuation 5/10 Momentum 3/10 The GF Score™ of 82/100 reflects a strong overall assessment of Newmont Corp's performance across multiple metrics. The company excels in Growth, with a score of 9/10, and maintains a solid Financial Strength rating of 8/10. However, its Valuation score of 5/10 and Momentum score of 3/10 indicate potential weaknesses that could be of concern to investors. Overall, while NEM shows strong profitability and growth potential, its valuation and momentum may pose risks, particularly given the current price relative to intrinsic value.

What Are Insiders Doing with NEM Stock? In the past three months, insider activity at Newmont Corp has been notably bearish, with insiders selling a total of $5.5 million in shares and no reported buying activity. This pattern of selling could suggest a lack of confidence among insiders regarding the stock's future performance. Insider selling can often be interpreted as a signal that those closest to the company may believe the stock is overvalued or that they do not anticipate significant short-term growth.

Overall, the absence of insider buying alongside substantial selling might raise red flags for potential investors, indicating that insiders do not view the current price as a favorable entry point.

What This Means for Investors Based on the GF Value™ assessment, Newmont Corp NEM is currently considered overvalued. The significant discrepancy between the current stock price and the intrinsic value estimate suggests that potential investors should exercise caution and conduct further research before making any investment decisions.

For the complete analysis, visit the Newmont Corp NEM 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 NEM's GF Score™?

NEM's GF Score™ is 82/100, indicating a strong investment based on key fundamental metrics.

Is NEM overvalued or undervalued?

NEM is currently overvalued, with a GF Value™ estimate of $72.14 compared to the market price of $97.59.

What is NEM's P/E ratio?

NEM's current P/E (TTM) is 12.7x, which is 28% below its 5-year median P/E of 17.6x, suggesting the stock is trading at a lower valuation historically.

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].

In the latest close session, Newmont Corporation (NEM - Free Report) was up +2.71% at $100.23. The stock exceeded the S&P 500, which registered a gain of 0.5% for the day. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.31%.

Heading into today, shares of the gold and copper miner had lost 16.11% over the past month, lagging the Basic Materials sector's loss of 6.25% and the S&P 500's loss of 0.23%.

The upcoming earnings release of Newmont Corporation will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.25, reflecting a 57.34% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.19 billion, reflecting a 16.38% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.91 per share and revenue of $27.25 billion, indicating changes of +43.83% and +20.2%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Newmont Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.62% higher. Newmont Corporation is currently a Zacks Rank #3 (Hold).

Investors should also note Newmont Corporation's current valuation metrics, including its Forward P/E ratio of 9.85. This denotes a premium relative to the industry average Forward P/E of 8.64.

It is also worth noting that NEM currently has a PEG ratio of 1.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Mining - Gold industry was having an average PEG ratio of 0.88.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 37% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Chord Energy Corporation (CHRD) Q1 2026 Earnings Call Transcript

Key Takeaways Chord Energy's Q1 earnings increased 12.9% as oil production and realized prices improved year over year.CHRD generated $321M in adjusted free cash flow and returned $145M through dividends and buybacks.Chord Energy raised 2026 oil production guidance while keeping capital spending outlook unchanged. Chord Energy Corporation (CHRD - Free Report) reported first-quarter 2026 adjusted earnings of $4.56 per share, up 12.9% from $4.04 a year ago. The bottom line beat the Zacks Consensus Estimate of $3.35 by 36.1%.

Total quarterly revenues increased 4.3% year over year to $1,150.6 million from the prior-year level of $1,103.3 million. The top line beat the Zacks Consensus Estimate of $1,077.4 million by 6.8%.

Strong quarterly results were driven by increased production volumes and higher oil price realization and natural gas sales prices. However, lower natural gas liquids sales prices slightly offset the positives.

CHRD’s Production Volumes IncreaseCHRD’s total production in the first quarter of 2026 was 275.6 thousand barrels of oil equivalent per day (MBoe/D), above the 270.9 MBoe/D recorded a year ago.

Oil production, accounting for 57.3% of the total production in the quarter, amounted to 158 thousand barrels of oil per day (Mbo/D), higher than 153.7 Mbo/D recorded in the year-ago period. Natural gas liquids production was 49 thousand barrels per day (MBbl/D), marginally higher than 48.1 MBbl/D in the prior-year quarter.

Natural gas production was 411.4 million cubic feet per day (MMcf/D), down from 414.5 MMcf/D recorded a year ago.

The company had 37 gross (30 net) operated wells turned into line during the quarter, supporting stronger near-term production delivery.

CHRD’s Realized Prices (Excluding Derivative Realized)Average sales prices for natural gas were approximately $3.14 per Mcf, higher than $2.30 recorded a year ago.

The company’s oil price realization in the quarter was $70.05 per barrel (Bbl), higher than $69.11 recorded a year ago.

Average sales prices for natural gas liquids were approximately $8.66 per Bbl, lower than $14.18 recorded a year ago.

Chord Energy Holds the Line on Costs as Activity DeliversLease operating expense (LOE) per barrel of oil equivalent was $9.87 per Boe, landing near the midpoint of management’s expected range but higher than the year-ago figure of $9.56.

On the income statement, LOE increased to $244.9 million from $233.1 million a year earlier, while gathering, processing and transportation expense declined to $67.0 million from $73.3 million. Purchased oil and gas expenses were $509.8 million, up sharply from the prior-year figure of $111.4 million. Depreciation, depletion and amortization rose to $384.2 million from the prior year figure of $349.8 million, reflecting a larger asset base and continued development activity.

Total operating expenses increased to $1,332.8 million from $882.6 million in the year-ago period.

CHRD’s Cash Engine Supports Robust Capital ReturnsNet cash provided by operating activities was $507.5 million in the quarter, lower than the prior-year figure of $656.9 million. CHRD reported adjusted free cash flow of $321.2 million, higher than the year-ago figure of $290.5 million. Adjusted EBITDA totaled $713.0 million compared with 695.5 million a year ago.

CHRD returned $145 million through a $1.30 per share of base dividend and 559,064 share repurchases worth $71 million.

CHRD: Capex & FinancialsIn the first quarter, Chord Energy spent $351.3 million on capital expenditures. As of March 31, 2026, CHRD had cash and cash equivalents of $225.8 million and long-term debt of $1.48 billion.

CHRD Lifts 2026 Oil Guidance While Keeping Capex SteadyThe company updated its 2026 outlook to reflect first-quarter performance. Full-year 2026 oil volume guidance was raised by 2 thousand barrels of oil per day (Mbo/D) to a range of 160 Mbo/D to 162 Mbo/D. The company expects second-quarter oil volumes of 162.5-165.5 Mbo/D, while full-year 2026 capital expectations remained unchanged at $1,355-$1,445 million. Chord Energy’s production guidance for full-year 2026 is in the range of 76.4 MBoe/D to 280.3 MBoe/D. For the second quarter, the company expects production to be in the range of 279.7-285 MBoe/D.

CHRD’s Zacks RankCHRD currently sports a Zacks Rank #1 (Strong Buy).

Recent Energy Sector ReleasesSome other top-ranked stocks from the energy sector that have recently reported their earnings are Chevron Corporation (CVX - Free Report) , BP plc (BP - Free Report) and Eni S.p.A. (E - Free Report) . CVX and E each currently sports a Zacks Rank #1, while BP has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.

As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.

BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.

As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.

Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.

As of March 31, 2026, E had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.

Chord Energy Corporation (CHRD - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Chord Energy Corporation, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $5.29 per share, which is a change of +195.5% from the year-ago reported number.

Over the last 30 days, the Zacks Consensus Estimate for Chord Energy Corporation has increased 27.72% because one estimate has moved higher while two have gone lower.

Current-Year Estimate RevisionsFor the full year, the company is expected to earn $18.26 per share, representing a year-over-year change of +91.6%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Chord Energy Corporation. Over the past month, four estimates have moved higher compared to two negative revisions, helping the consensus estimate increase 27.82%.

Favorable Zacks RankThanks to promising estimate revisions, Chord Energy Corporation currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineChord Energy Corporation shares have added 10% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

Chord Energy is rated a Buy, driven by disciplined capital allocation, aggressive buybacks, and a conservative balance sheet. CHRD prioritizes free cash flow per share over production growth, leveraging long-lateral drilling and operational efficiencies to lower breakevens by $8-$12/barrel. Management has reduced share count by 12% since 2023, signaling conviction that the stock is undervalued at ~3x EV/EBITDA, well below peers.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring 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, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

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 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 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 is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and 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.

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.

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.

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: Chord Energy Corporation (CHRD - Free Report) Established through the merger of Oasis Petroleum and Whiting Petroleum in July 2022, Chord Energy has rapidly ascended as a leading E&P entity in the Williston Basin. Chord Energy's operations span across the Bakken and Three Forks formations, where the company boasts an impressive base of high-quality, oil-weighted resources. Chord's strategy is to maintain production stability while maximizing capital returns through free cash flow generation, prudent investment and shareholder distributions. Its operations are centered on the acquisition, exploration, development, and production of crude oil, natural gas liquids and natural gas.

CHRD is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Oils-Energy stock. CHRD has a Momentum Style Score of B, and shares are up 14.1% over the past four weeks.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $12.30 to $19.11 per share. CHRD also boasts an average earnings surprise of +11.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CHRD should be on investors' short list.

Chord Energy is rated a buy, trading at 7.5x forward earnings with a 17.5% FCF yield and only 0.4x leverage. CHRD's XTO acquisition added superior acreage, positioned it as the Bakken's consolidator, and management signals more disciplined M&A ahead. Operational advances—four-mile laterals, AI-optimized lift, and improved decline rates—set up a 2027 production inflection without extra capital.

It has been about a month since the last earnings report for Chord Energy Corporation (CHRD - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Chord Energy Corporation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Chord Energy Q1 Earnings Top Estimates on Increased Output & Higher PricesChord Energy reported first-quarter 2026 adjusted earnings of $4.56 per share, up 12.9% from $4.04 a year ago. The bottom line beat the Zacks Consensus Estimate of $3.35 by 36.1%.

Total quarterly revenues increased 4.3% year over year to $1,150.6 million from the prior-year level of $1,103.3 million. The top line beat the Zacks Consensus Estimate of $1,077.4 million by 6.8%.

Strong quarterly results were driven by increased production volumes and higher oil price realization and natural gas sales prices. However, lower natural gas liquids sales prices slightly offset the positives.

CHRD’s Production Volumes IncreaseCHRD’s total production in the first quarter of 2026 was 275.6 thousand barrels of oil equivalent per day (MBoe/D), above the 270.9 MBoe/D recorded a year ago.

Oil production, accounting for 57.3% of the total production in the quarter, amounted to 158 thousand barrels of oil per day (Mbo/D), higher than 153.7 Mbo/D recorded in the year-ago period. Natural gas liquids production was 49 thousand barrels per day (MBbl/D), marginally higher than 48.1 MBbl/D in the prior-year quarter.

Natural gas production was 411.4 million cubic feet per day (MMcf/D), down from 414.5 MMcf/D recorded a year ago.

The company had 37 gross (30 net) operated wells turned into line during the quarter, supporting stronger near-term production delivery.

CHRD’s Realized Prices (Excluding Derivative Realized)Average sales prices for natural gas were approximately $3.14 per Mcf, higher than $2.30 recorded a year ago.

The company’s oil price realization in the quarter was $70.05 per barrel (Bbl), higher than $69.11 recorded a year ago.

Average sales prices for natural gas liquids were approximately $8.66 per Bbl, lower than $14.18 recorded a year ago.

Chord Energy Holds the Line on Costs as Activity DeliversLease operating expense (LOE) per barrel of oil equivalent was $9.87 per Boe, landing near the midpoint of management’s expected range but higher than the year-ago figure of $9.56.

On the income statement, LOE increased to $244.9 million from $233.1 million a year earlier, while gathering, processing and transportation expense declined to $67.0 million from $73.3 million. Purchased oil and gas expenses were $509.8 million, up sharply from the prior-year figure of $111.4 million. Depreciation, depletion and amortization rose to $384.2 million from the prior year figure of $349.8 million, reflecting a larger asset base and continued development activity.

Total operating expenses increased to $1,332.8 million from $882.6 million in the year-ago period.

CHRD’s Cash Engine Supports Robust Capital ReturnsNet cash provided by operating activities was $507.5 million in the quarter, lower than the prior-year figure of $656.9 million. CHRD reported adjusted free cash flow of $321.2 million, higher than the year-ago figure of $290.5 million. Adjusted EBITDA totaled $713.0 million compared with 695.5 million a year ago.

CHRD returned $145 million through a $1.30 per share of base dividend and 559,064 share repurchases worth $71 million.

CHRD: Capex & FinancialsIn the first quarter, Chord Energy spent $351.3 million on capital expenditures. As of March 31, 2026, CHRD had cash and cash equivalents of $225.8 million and long-term debt of $1.48 billion.

CHRD Lifts 2026 Oil Guidance While Keeping Capex SteadyThe company updated its 2026 outlook to reflect first-quarter performance. Full-year 2026 oil volume guidance was raised by 2 thousand barrels of oil per day (Mbo/D) to a range of 160 Mbo/D to 162 Mbo/D. The company expects second-quarter oil volumes of 162.5-165.5 Mbo/D, while full-year 2026 capital expectations remained unchanged at $1,355-$1,445 million. Chord Energy’s production guidance for full-year 2026 is in the range of 76.4 MBoe/D to 280.3 MBoe/D. For the second quarter, the company expects production to be in the range of 279.7-285 MBoe/D.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 14.37% due to these changes.

VGM ScoresAt this time, Chord Energy Corporation has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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 Chord Energy Corporation has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

On June 09, 2026, Chord Energy Corp CHRD shares fell 3.0% to a current price of $134.12. Over the past year, the stock has shown significant volatility, with a 52-week high of $151.95 and a low of $84.25. The stock's price performance reflects a year-to-date gain of 47.4% and a 1-year increase of 44.0%, although it has suffered a slight decrease of 2.8% over the past week and 0.9% over the past month.

GF Value™ verdict: The current price is $134.12, compared to a GF Value™ of $129.66, indicating the stock is 3.4% overvalued.GF Score™: 61/100, which is considered Above Average.Notable signal: Insiders sold $3.8M worth of shares in the last 3 months, with no buying activity reported. Is CHRD Overvalued or Undervalued? According to the GF Value™, Chord Energy Corp is currently overvalued by approximately 3.4%, as the stock price of $134.12 exceeds the estimated fair value of $129.66. This suggests that there may be limited margin of safety for potential investors, as the current market price does not provide a substantial discount to the intrinsic value calculated by GuruFocus. The GF Valuation label indicates that the stock is fairly valued, further corroborating the idea that current pricing may factor in future growth expectations that may not be fully realized.

The fact that the stock is classified as overvalued poses a risk for investors, as it may indicate that the price could be susceptible to downward adjustments if future performance does not meet market expectations. Conversely, if the company manages to exceed these expectations, there could be room for positive price adjustments. Nevertheless, investors should consider the current valuation in conjunction with broader market conditions and company performance metrics.

How Does CHRD's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)6.9x6.4x The current forward P/E ratio of 6.9x is slightly above the 5-year median P/E of 6.4x, indicating that the stock is trading at a premium compared to its historical valuation metrics. This analysis aligns with the GF Value™ verdict, suggesting that Chord Energy Corp is indeed overvalued based on its historical performance.

What Does CHRD's GF Score™ Tell Us? MetricRating GF Score™61 Financial Strength6/10 Profitability6/10 Growth3/10 Valuation7/10 Momentum1/10 The GF Score™ of 61/100 indicates an overall Above Average ranking, reflecting a mixed bag of strengths and weaknesses. Financial Strength and Profitability both score 6/10, suggesting a stable balance sheet and solid profitability metrics. However, the Growth rank of 3/10 points to potential concerns regarding the company’s ability to expand, and the low Momentum rank of 1/10 may suggest a lack of recent positive price trends. The Valuation rank of 7/10 signifies that while the stock may currently be overvalued, it has historically been considered a reasonable investment based on intrinsic valuation metrics.

What Are Insiders Doing with CHRD Stock? Insider activity at Chord Energy Corp has shown a notable trend, with insiders selling $3.8 million worth of shares over the last three months, but no buying activity has been reported. This pattern may suggest a lack of confidence among insiders regarding the stock’s current valuation or future performance potential. Typically, when insiders sell a significant amount of stock without any buying, it can raise caution for external investors.

What This Means for Investors Based on the GF Value™ assessment, Chord Energy Corp is currently deemed to be overvalued. The stock's price exceeds the intrinsic value estimate, indicating potential risks for investors looking to enter at this price point. As always, investors should conduct their own thorough research and consider various market factors before making investment decisions.

For the complete analysis, visit the Chord Energy Corp CHRD 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 CHRD's GF Score™?

CHRD's GF Score™ is 61/100, indicating an Above Average ranking that suggests a mixed assessment of the company's overall quality and potential for long-term returns.

Is CHRD overvalued or undervalued?

CHRD is currently overvalued, with a GF Value™ estimate of $129.66 compared to the current price of $134.12, suggesting limited upside potential.

What is CHRD's P/E ratio?

CHRD's forward P/E ratio is 6.9x, which is above its 5-year median P/E of 6.4x, indicating that the stock is trading at a premium compared to its historical valuation metrics.

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].

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