CVE / Cenovus Energy Inc. (TSX) - Forecast, Price Target, Estimates, Predictions

This card shows analyst upgrades/downgrades for Cenovus Energy Inc.. An analyst rating is a classification that gives investors a sense of analyst sentiment about the direction and performance of an equity - usually a stock - over a period of time, typically 12 months.

The standard analyst ratings are generally as follows:

• Buy/Overweight/Outperform - Any of these ratings conveys an analyst’s belief that the stock is likely to outperform a market index (e.g. the S&P 500).
• Hold/Equal-Weight/Market Perform - Any of these ratings conveys an analyst’s belief that the stock is likely to perform in line with a market index.
• Sell/Underweight/Underperform - Any of these ratings suggest that an analyst believes the stock is likely to underperform a market index.

When an analyst upgrades a stock, they are signaling that the company’s fundamentals are being undervalued by investors. It could also mean they believe the market is underestimating the company’s potential. The opposite is true when a stock receives a downgrade.

The average rating of each individual analyst’s rating is the consensus rating for a stock. This gives investors a broader sense of the overall sentiment for that stock.

Why Are Analyst Ratings important?

In addition to being able to interpret financial data, stock analysts have connections within the companies they cover that give them access to information retail investors do not have.

Therefore, analyst ratings can help you find opportunities in the market. However, they are guidelines more than recommendations. This is why it’s important to look at analyst ratings over a period of time.

If analysts change their ratings frequently, you should pay close attention to the company’s fundamentals. For example, has there been a significant change to the company’s earnings growth and/or debt?

You should also pay attention to the number of analysts covering a stock over the course of a year. In general, the more analysts who cover the stock give the consensus rating more credibility, but each individual rating less overall weight.

How to Use Analyst Ratings ?

Analyst ratings are one data point for you to consider. Here are some strategies you can use to fine tune your research.

Look at more than one analyst and don’t hesitate to look at analysts that have differing views. This can help challenge any preconceived ideas you have about a stock and point out ways in which your thesis for owning or avoiding a stock may have changed.

Compare a stock’s rating with other stocks in its industry or sector. In some cases, a stock is simply superior to others in its sector. However, at other times, it could be overvalued based on investor sentiment instead of fundamentals.

How are the Fintel Analyst Ratings different?

Analyst ratings by Fintel are presented in close to real-time to stay ahead of generalized information flow. Combined with target price estimates and revenue estimates for the company you have greater accuracy despite market volatility.

An analyst rating tells investors how a particular analyst feels about the stock’s price over a period of time (usually 12 to 18 months). Analysts can issue or update a rating at any time. However, analysts frequently give ratings around the time a company reports quarterly earnings.

Understanding Analyst Ratings

Strong Buy or Buy: These ratings mean a stock will likely outperform the market over the next 12 to 18 months. Therefore, investors can consider starting a new position or adding to an existing one. These ratings are similar to Overweight or Outperform.

Hold : This rating means a stock is likely to perform in line with the broader market over the next 12 to 18 months. Investors owning the stock may want to hold their position but not add to it. It also signals that investors who don’t own shares may want to wait before getting involved with the stock. This rating is similar to Neutral, Equal Weight, or Market Perform.

Sell or Strong Sell: These ratings mean a stock will likely underperform the market in the next 12 to 18 months. Investors should consider selling all or a portion of their position. Traders will frequently see this as a signal to short a stock. These ratings are similar to Underweight or Underperform.

Why Analyst Ratings Matter

Analyst recommendations carry weight with investors because analysts have access to company information, including senior management, in a way retail investors do not. Analysts also perform fundamental analysis that is difficult for individual investors to do independently.

Seeing how analyst recommendations move over time is a good way to determine overall sentiment. However, in addition to the rating itself, investors should consider how many analysts are covering a stock. Investors can give more weight to the consensus opinion when more analysts cover the stock.

The forecasted annual revenue of Cenovus Energy Inc. in 2024-12-31 is 44,716MM. )

Understanding a company’s revenue history gives investors a snapshot of its potential growth. Revenue growth is a solid predictor of earnings (or profit) growth. A company that can increase its revenue while keeping its operating costs constant has more available capital to reinvest into its business or return to shareholders through dividends or share buybacks.

However, investors should be careful before investing in a company that is growing revenue but showing declining earnings or is unprofitable. In some cases, this is simply a case of a young company that is still in an early growth phase. But if this is a mature company, it can indicate that other fundamental problems exist.

How to Interpret Revenue Estimates?

Fintel gives you revenue projections for stocks that cover 10 years between 2020 and 2030. Although past performance does not guarantee future results, you can be more confident in your decision to buy or sell a stock when you see a company with revenue that has a track record of increasing its revenue.

The forecasted annual earnings of Cenovus Energy Inc. in 2029-12-31 is 4.67 per share.

One part of an analyst’s rating is a profit (i.e., earnings) estimate for the current quarter and/or future quarters. The measurement given is earnings per share (EPS). EPS is a metric that indicates how much a company earned as represented by one share of its stock over a specific period (typically three months).

Earnings per Share Calculation

To understand the earnings per share calculation, you must understand net income. Net income is the amount of money a company has left over after deducting appropriate expenses and taxes from its revenues).

The formula for earnings per share is net income divided by the total number of outstanding shares (i.e., available for purchase). For example:

Company A has a net income of $100 million and forty million outstanding shares. The EPS calculation is as follows:

100,000,000/40,000,000 = $2.50 per share

How to use Earnings Per Share in Stock Analysis

Earnings per share is an essential metric for you to consider when deciding to buy a stock. After all, a company with high earnings per share is productive and generates revenue in excess of its operating costs.

However, it’s not the only metric you should use. Metrics like price-to-earnings and debt-to-equity add additional perspective about a company’s health.

You should also be sure to compare a company’s EPS with a company in its sector. However, when you do, be aware that EPS is different and more important than net profit by itself. You may see a company that has a rising net profit. But if its outstanding shares are also rising, then its EPS might be flat or even edging lower.

The forecasted annual EBITDA of Cenovus Energy Inc. in 2025-12-31 is 11,515MM.

EBIDTA is an acronym that stands for earnings before interest, taxes, depreciation, and amortization. Analysts and investors pay attention to EBITDA because it strips out items that a company must report on its balance sheet but doesn’t significantly impact its business. Here’s an explanation of what that means for each part of the acronym:

Interest: Loan interest and earnings are subject to change based on a company’s financial strategy and, in any event, are not part of its core activities.

Taxes: Taxes are affected by governmental policy that can distort a company’s perceived profitability.

Depreciation: This accounts for the expected depreciation on tangible assets and immaterial goods from company investments. But since these investments may ultimately increase a company’s efficiency and profit potential, they aren’t a good indicator of a company’s current profitability.

Amortization: This shows the gradual writing off of the initial cost of an asset. It differs from depreciation because it is typically used with intangible assets such as intellectual property (e.g., patents, copyrights, etc.)

EBITDA vs. Net Income

Net income is the profit a company has left over after covering its operating expenses. However, net income includes the items that EBITDA excludes. That’s why most analysts prefer EBITDA because it better reflects the health of a company’s core business.

The forecasted annual EBIT of Cenovus Energy Inc. in 2027-12-31 is 4,639MM.

EBIT is an acronym that stands for earnings before interest and taxes. Analysts use EBIT to measure a company’s performance because it strips out tax expenses and the costs of the capital structure influencing profit. These don’t significantly impact a company’s business.

Interest: Loan interest and earnings are subject to change based on a company’s financial strategy and, in any event, are not part of its core activities.

Taxes: Taxes are affected by governmental policy that can distort a company’s perceived profitability.

NOTE: EBIT is sometimes synonymous with operating income. However, in some cases, operating income doesn’t include gains or losses from non-core activities.

EBIT vs. EBITDA

EBITDA also strips out depreciation and amortization from a company’s earnings:

Depreciation: This accounts for the expected depreciation on tangible assets and immaterial goods from company investments. But since these investments may ultimately increase a company’s efficiency and profit potential, they aren’t a good indicator of a company’s current profitability.

Amortization: This shows the gradual writing off of the initial cost of an asset. It differs from depreciation because it is typically used with intangible assets such as intellectual property (e.g., patents, copyrights, etc.)