Continental Resources (CLR) Dips More Than Broader Markets: What You Should Know

Continental Resources (CLR) closed at $44.61 in the latest trading session, marking a -1.39% move from the prior day. This change lagged the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.33%.

Coming into today, shares of the independent oil and gas company had gained 6% in the past month. In that same time, the Oils-Energy sector gained 1.34%, while the S&P 500 gained 3.11%.

Investors will be hoping for strength from Continental Resources as it approaches its next earnings release. On that day, Continental Resources is projected to report earnings of $1.70 per share, which would represent year-over-year growth of 839.13%. Our most recent consensus estimate is calling for quarterly revenue of $1.71 billion, up 103.6% from the year-ago period.

CLR's full-year Zacks Consensus Estimates are calling for earnings of $4.60 per share and revenue of $5.55 billion. These results would represent year-over-year changes of +493.16% and +114.76%, respectively.

It is also important to note the recent changes to analyst estimates for Continental Resources. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.24% higher within the past month. Continental Resources is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Continental Resources's current valuation metrics, including its Forward P/E ratio of 9.84. For comparison, its industry has an average Forward P/E of 9.07, which means Continental Resources is trading at a premium to the group.

We can also see that CLR currently has a PEG ratio of 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.35 based on yesterday's closing prices.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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