A strong stock as of late has been Canadian Natural Resources (CNQ). Shares have been marching higher, with the stock up 3.5% over the past month. The stock hit a new 52-week high of $52.57 in the previous session. Canadian Natural Resources has gained 53.1% since the start of the year compared to the 40.4% move for the Zacks Oils-Energy sector and the 59% return for the Zacks Oil and Gas – Exploration and Production – 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 August 6, 2026, Canadian Natural Resources reported EPS of $1.58 versus consensus estimate of $1.43 while it beat the consensus revenue estimate by 15.11%.
For the current fiscal year, Canadian Natural Resources is expected to post earnings of $4.05 per share on $34.26 in revenues. This represents a 59.45% change in EPS on a 23.64% change in revenues. For the next fiscal year, the company is expected to earn $3.61 per share on $30.06 in revenues. This represents a year-over-year change of -10.8% and -12.27%, respectively.
Valuation Metrics
Though Canadian Natural Resources has recently hit a 52-week high, what is next for Canadian Natural Resources? 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Canadian Natural Resources has a Value Score of B. The stock’s Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.1X. On a trailing cash flow basis, the stock currently trades at 9X versus its peer group’s average of 4.9X. 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 supersedes any trend on the style score front. Fortunately, Canadian Natural Resources currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
