Is Coterra Energy Stock Outperforming the Nasdaq?

Houston-based Coterra Energy Inc. (CTRA) is a diversified energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. With a market cap of $22 billion, Coterra operates in key regions like the Permian Basin, Marcellus Shale, and Anadarko Basin, showcasing its strong presence in the energy sector.

Companies worth $10 billion or more are generally categorized as "large-cap stocks." Coterra Energy fits this description perfectly, with its market cap exceeding this threshold.

CTRA touched its two-year high of $29.95 on Jan. 17 and is currently trading 4.1% below that peak. CTRA stock has soared 21.3% over the past three months, notably outperforming the Nasdaq Composite’s ($NASX) 9.1% decline during the same time frame.

CTRA’s performance has remained mixed over the longer time frame. CTRA has surged 21.4% over the past six months and gained 4.8% over the past year, compared to NASX’s 92 bps dip over the past six months and 8.4% gains over the past 52 weeks.

To confirm the recent upturn, CTRA has traded mostly above its 50-day moving average since late December 2024 and its 200-day moving average since early January with some fluctuations.

Coterra Energy’s stock declined 2.1% in the trading session after the release of its mixed Q4 results on Feb. 24. The company reported a 12.6% year-over-year decline in overall operating revenues to $1.4 billion, which missed the Street’s expectations by a small margin. On a positive note, Coterra’s total barrels of oil equivalent (BOE), oil production, and natural gas production exceeded the high-end of guidance by 3% or more. Although its adjusted net income for the quarter declined 7.5% year-over-year to $358 million, its adjusted EPS of $0.49 surpassed the consensus estimates by a notable margin.

In FY 2025, Coterra expects its total BOE production to surge approximately by 9%. Meanwhile, the company plans to allocate between $2.1 billion and $2.4 billion in capital expenditures, with a significant focus on the Permian Basin. This strategic emphasis on oil-rich assets is expected to drive growth while maintaining a reinvestment rate below 50%. Furthermore, Coterra announced a 5% increase in the quarter dividend to $0.22 per share, reflecting its commitment to shareholder returns.

Meanwhile, Coterra has significantly outperformed its peer Devon Energy Corporation’s (DVN) 11.4% decline over the past six months and a 25.5% plunge over the past year.

Among the 24 analysts covering the CTRA stock, the consensus rating is a “Strong Buy.” Its mean price target of $34.92 suggests a 21.6% upside potential from current price levels.