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Coterra Energy - AI Stock Analysis

Analysis generated January 26, 2025

Coterra Energy is an independent oil and gas company engaged in the development, exploration, and production of oil, natural gas, and natural gas liquids. The company is known for its strategic focus on proven oil and gas basins in the United States, leveraging its technological prowess and operational efficiency to drive growth. Coterra's primary operations are concentrated in the Marcellus Shale, Permian Basin, and Anadarko Basin, which are some of the most prolific regions for hydrocarbon production in North America. This diversified portfolio allows the company to mitigate risks associated with geographic and commodity price volatility.

Fundamental Analysis

Revenue for the last quarter was $1.36 billion, which represents a 6.92% increase compared to the previous quarter. This positive quarter-over-quarter growth indicates improving top-line performance. Compared to the same quarter last year, there is a modest 0.22% increase in revenue, suggesting a stable year-over-year performance.

The net income for the last quarter was $252 million, marking a 14.55% increase compared to the previous quarter. However, it is down by 21.98% compared to the same quarter last year. While the quarter-over-quarter growth indicates short-term profitability improvement, the year-over-year decline may point to potential challenges or increased expenses that need to be monitored.

The EBITDA for the last quarter was $818 million, up 7.35% from the previous quarter, but down 3.42% year-over-year. The increasing EBITDA over the short term is encouraging, indicating operational efficiency, though the year-over-year decline warrants close observation for structural changes in the company's cost base or revenue-generating capacity.

The current Price-Earnings (P/E) ratio is 17.59, which is considered within the normal range. A P/E ratio within this range typically indicates that the stock is neither significantly overvalued nor undervalued, allowing for potential growth without excessive market speculation.

Technical Analysis

Today’s stock price is $29.02, which is an increase of 18.06% compared to a month ago, indicating a positive short-term trend. The stock also shows an 18.50% increase compared to a year ago, suggesting a positive long-term trend.

Despite the price increase over various time frames, the trend is presently bearish. The current Simple Moving Average (SMA10) is $29.25, slightly lower than the previous SMA10 of $29.33. This suggests a potential downward movement in price, warranting vigilance.

The Relative Strength Index (RSI) is at 26.5, signaling an oversold condition. Typically, RSI below 30 indicates that the stock may be undervalued, presenting a bullish opportunity for investors looking to capitalize on potential recovery.

Alternative Data Analysis

Coterra Energy currently has 30 open positions posted on popular job boards, reflecting a 150% increase in the last couple of months. This rapid growth in job postings suggests that the company is gearing up for expansion, which could be interpreted positively from an operational standpoint.

The business outlook among employees at Coterra Energy is neutral. While this doesn’t indicate immediate enthusiasm, it also doesn’t reflect negativity, suggesting a stable internal environment.

On the customer acquisition front, Coterra Energy has seen an estimated 11,000 visitors to their webpage, down 52% over the last couple of months. This decline is worrisome as it might indicate waning interest or a reduction in customer engagement.

Additionally, Coterra Energy has 22,000 followers on their Twitter page, with the number of followers remaining stagnant over the last couple of months. This can symbolize a plateau in social media engagement and potentially less interest in the company's updates.

The AltIndex AI score, which aggregates fundamental, technical, and alternative data, assigns Coterra Energy a score of 57. This is interpreted as a hold signal, suggesting investors exercise patience and vigilance.

Conclusion

Coterra Energy presents a mixed bag of signals for potential investors. The fundamental indicators show revenue growth and improving quarterly net income and EBITDA, though year-over-year comparisons flag potential issues. Technically, while the stock price has been rising, the bearish trend in SMA10 and oversold RSI suggest caution. Alternative data points to potential growth with increased job postings but highlights concerns with decreasing web traffic and follower stagnation.

Given these mixed indicators and the hold signal from AltIndex’s AI score, a conservative approach might be recommended. Investors should keep a close eye on the company’s next few quarters to gauge whether the positive short-term trends can be sustained and translate into long-term growth.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.