Shares of Cenovus Energy (CVE) have been strong performers lately, with the stock up 26.7% over the past month. The stock hit a new 52-week high of $31.68 in the previous session. Cenovus has gained 86.6% since the start of the year compared to the 32% gain for the Zacks Oils-Energy sector and the 68.1% return for the Zacks Oil and Gas - Integrated - Canadian industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, Cenovus reported EPS of $0.61 versus consensus estimate of $0.56 while it missed the consensus revenue estimate by 2.75%.
For the current fiscal year, Cenovus is expected to post earnings of $3.01 per share on $37.4 in revenues. This represents a 95.45% change in EPS on a 5.19% change in revenues. For the next fiscal year, the company is expected to earn $2.76 per share on $38.04 in revenues. This represents a year-over-year change of -8.42% and 1.7%, respectively.
Valuation Metrics
While Cenovus has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cenovus has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 9.1X versus its peer group's average of 11.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Cenovus currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cenovus fits the bill. Thus, it seems as though Cenovus shares could have a bit more room to run in the near term.
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Cenovus Energy Inc (CVE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).