Valued at a market cap of almost $18.7 billion, Coterra Energy Inc. (CTRA) is a premier, diversified energy company that engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The Houston, Texas-based company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and Coterra Energy fits the label perfectly. The energy giant embraces innovation and technology and focuses on sustainable development. It has operations in the Permian Basin, Marcellus Shale, and the Anadarko Basin.
CTRA is currently trading 14.4% below its 52-week high of $28.90, reached on Apr. 4. Shares of this oil and gas company have gained 7.9% over the past three months, almost mirroring the broader S&P 500 Index’s ($SPX) 7.8% returns during the same time frame.
However, in the longer term, CTRA has declined 1.6% over the past 52 weeks, significantly underperforming SPX’s 28.7% returns. Shares of CTRA are down 3.1% on a YTD basis, massively lagging behind SPX’s 27.3% gains over the same time frame.
To confirm its bearish price trend, CTRA has been trading below its 200-day moving average since early December and has remained below its 50-day moving average since mid-December.
CTRA’s shares plunged 5.1% following its mixed Q3 earnings release on Oct. 31. The company’s revenue of $1.36 billion remained flat year-over-year and surpassed the Wall Street estimates of $1.32 billion. However, its adjusted earnings declined 36% from the year-ago quarter to $0.32 per share and fell short of the consensus estimates by 5.9%. Weaker oil and natural gas realization and a 10.2% increase in operating expenses primarily led to the company’s bottom-line miss.
Yet, CTRA has outpaced its rival, Devon Energy Corporation (DVN), which declined 27.4% over the past 52 weeks and 28.1% on a YTD basis.
Despite Coterra Energy’s underperformance, analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 23 analysts covering it, and the mean price target of $32.58 suggests a notable 31.7% premium to its current levels.
