No surprise that analysts are unanimous in their bullish outlook for Cenovus Energy. All 18 of those surveyed rate the stock at Strong Buy or Buy. At a recent price of around $20.00 per share, the stock’s upside potential based on an average price target of $24.22 is 21.1%. At a high price target of $27.90, the upside potential is 39.5%.
For the third quarter, revenue is forecast at $10.94 billion, which would be down 32.1% sequentially but up 3.2% year over year. Adjusted EPS are forecast at $0.84, down 14.4% sequentially and up 180.6% year over year. For the full year, analysts expect EPS of $3.10, up 880% year over year, on sales of $50.31 billion, up more than 37%. Cenovus completed a merger with Husky in March 2021, and that has affected the comparison data.
The stock trades at about 6.5 times expected 2022 EPS, 6.5 times estimated 2023 earnings of $3.07 and 6.6 times estimated 2024 earnings of $3.02. The stock’s 52-week trading range is $10.72 to $24.91. Cenovus pays an annual dividend of $0.31 (yield of 1.54%). Total shareholder return for the past 12 months has been 71.2%.
CVS Health
The country’s third-largest provider of health care plans, CVS Health Corp. (NYSE: CVS) has seen its stock price rise by about 5% in the past 12 months. While the company, also the second-largest drugstore operator in the United States, has outperformed rival Walgreens over the past decade, its 10-year return of about 156% pales beside the 1,060% gain of health insurer United Health Group. That is probably the main reason the company is trying to break into the primary care market by beginning to establish clinics in its 1,100 retail stores and working to gain a piece of the insurance market through its acquisition of Aetna.
Analysts remain bullish on the stock, with 21 of 27 brokerages having a Buy or Strong Buy rating. The rest rate the shares at Hold. At a share price of around $93.80, the stock’s upside potential based on a median price target of $120.00 is about 28%. At the high price target of $130, the implied upside is 38.6%.
The consensus revenue estimate for the third quarter is $76.78 billion, down 4.8% sequentially but 4.1% higher year over year. Adjusted EPS are forecast at $1.99, down 16.9% sequentially and up two cents year over year. For the full 2022 fiscal year, analysts are looking for EPS of $8.55, up 1.77%, and revenue of $312.35 billion, up about 6.9% year over year.
CVS stock trades at about 11.0 times expected 2021 EPS, 10.4 times estimated 2023 earnings of $9.06 and 9.5 times estimated 2024 earnings of $9.88 per share. The stock’s 52-week range is $86.28 to $111.25. CVS Health pays an annual dividend of $2.20 (yield of 2.34%). Total shareholder return for the past 12 months was 7.7%.
Norwegian Cruise Lines
Over the past 12 months, shares of Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) dropped by about 36%. That still is better than either of its main rivals, Carnival and Royal Caribbean. Cruise operators are seeing a sharp increase in revenue, but profits remain elusive. Demand for trips on Norwegian has reached record levels, and gross margin turned positive in the second quarter. The company, which sails primarily from U.S. ports, also faces less impact from a strong dollar.
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