Cenovus’s operating income dropped by more than 80% sequentially in the prior quarter. Revenue reached $13.9 billion in the first quarter of the year and $16.1 billion in the second quarter before falling back to $13.5 billion in the third quarter. The downward trend is expected to continue for the fourth quarter.
Analysts are strongly bullish on the stock. Of 19 brokerages covering Cenovus, 16 have Buy or Strong Buy ratings and two more rate it at Hold. At a recent price of around $20.00 per share, the stock’s upside potential based on an average price target of $24.80 is 24%. At a high price target of $29.30, the upside potential is 46.5%.
For the fourth quarter, revenue is forecast at $10.8 billion, down 20.2% sequentially but up 11.1% year over year. Adjusted EPS are forecast at $0.45, down 13.7% sequentially and up from a year-ago loss per share of $0.20. For the full year, analysts expect EPS of $2.65, up 735.1% year over year, on sales of $53.26 billion, up more than 45%.
The stock trades at about 7.6 times expected 2022 EPS, 8.0 times estimated 2023 earnings of $2.50 and 7.3 times estimated 2024 earnings of $2.76. The stock’s 52-week trading range is $14.18 to $24.91. Cenovus pays an annual dividend of $0.34 (yield of 1.71%). Total shareholder return for the past 12 months has been 30.3%.
Datadog
Shares of data monitoring and analytics platform Datadog Inc. (NASDAQ: DDOG) have dropped by more than 48% over the past 12 months. Like most tech companies, shares are bouncing back this year, and they have added more than 15%, only a couple of percentage points better than the six-month dip in the stock’s price. An expected slowdown in IT spending for this year could hit Datadog’s revenue hard. The company’s outlook may be as important as its quarterly results to many investors.
Analysts are strongly bullish on the stock, with 25 of 33 having a Buy or Strong Buy rating and the rest rating the shares at Hold. At a price of around $84.00 a share, the upside potential based on a median price target of $105.00 is 25%. At the high price target of $144.00, the upside potential is 75%.
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