Could Cenovus Energy Inc (USA) (CVE) See a Reversal After Having Formed Several Months Bearish Wedge Down Pattern

July 17, 2017 - By Winifred Garcia

The stock of Cenovus Energy Inc (USA) (CVE) formed a down wedge with $6.72 target or 9.00 % below today’s $7.39 share price. The 9 months wedge indicates high risk for the $9.09B company. If the $6.72 price target is reached, the company will be worth $818.10 million less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

About 2.50 million shares traded. Cenovus Energy Inc (USA) (NYSE:CVE) has declined 34.01% since July 17, 2016 and is downtrending. It has underperformed by 50.71% the S&P500.

Wall Street await Cenovus Energy Inc (USA) (NYSE:CVE) to release earnings on July, 27. Analysts forecast EPS of $0.04, up exactly $0.08 or 200.00 % from 2014’s $-0.04 EPS. The expected CVE’s profit could reach $49.20 million giving the stock 46.19 P/E in the case that $0.04 earnings per share is reported. After posting $-0.04 EPS for the previous quarter, Cenovus Energy Inc (USA)’s analysts now forecast -200.00 % EPS growth.

Cenovus Energy Inc (USA) (NYSE:CVE) Ratings Coverage

Among 16 analysts covering Cenovus Energy Inc (NYSE:CVE), 7 have Buy rating, 2 Sell and 7 Hold. Therefore 44% are positive. Cenovus Energy Inc had 23 analyst reports since July 21, 2015 according to SRatingsIntel. Canaccord Genuity upgraded Cenovus Energy Inc (USA) (NYSE:CVE) on Wednesday, June 21 to “Buy” rating. The rating was reinitiated by Credit Suisse on Friday, May 26 with “Outperform”. The rating was initiated by Bank of America on Friday, August 19 with “Neutral”. The stock has “Neutral” rating by UBS on Tuesday, January 26. The firm has “Overweight” rating given on Monday, June 13 by Morgan Stanley. The stock of Cenovus Energy Inc (USA) (NYSE:CVE) has “Outperform” rating given on Thursday, April 28 by RBC Capital Markets. On Tuesday, December 15 the stock rating was maintained by JP Morgan with “Neutral”. As per Tuesday, January 26, the company rating was upgraded by Goldman Sachs. The firm earned “Sell” rating on Monday, January 23 by Goldman Sachs. The company was upgraded on Tuesday, December 1 by Goldman Sachs.

More notable recent Cenovus Energy Inc (USA) (NYSE:CVE) news were published by: Nasdaq.com which released: “BUZZ-US STOCKS ON THE MOVE-AMD, Chipotle, Vivint Solar, Cenovus Energy, and …” on June 20, 2017, also Fool.ca with their article: “How Far Can Cenovus Energy Inc. Fall?” published on July 03, 2017, Fool.ca published: “Cenvous Energy Inc. vs. Crescent Point Energy Corp.: Which Knife to Catch?” on July 05, 2017. More interesting news about Cenovus Energy Inc (USA) (NYSE:CVE) were released by: Fool.ca and their article: “Should You Buy Suncor Energy Inc. or Cenovus Energy Inc.?” published on June 27, 2017 as well as Fool.ca‘s news article titled: “Cenovus Energy Inc. Divestitures on the Horizon: Time to Buy?” with publication date: July 14, 2017.

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