The Reason For Today’s -2.58% Weakness in Canadian Natural Resources Limited (CNQ) Shares

Canadian Natural Resources Limited (NYSE:CNQ) is among the top losers of the stock market today, sinking -2.58% or (-0.78 points) to $29.49 from its previous close of $30.27. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1076689 contracts so far this session. CNQ shares had a relatively better volume day versus average trading capacity of 2.5 million shares, but with a 1.16 billion float and a -4.75% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CNQ stock indicates that the average analyst price target is $40.74 per share. This means the stock has a potential increase of 38.15% from where the CNQ share price has been trading recently.

During the recent trading session for Canadian Natural Resources Limited (NYSE:CNQ), the company witnessed their stock drop by $-2.2 over a week and tumble down $-2.68 from the price 20 days ago. When compared to their established 52-week high of $32.79, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 03/01/20. The recent low of $22.58 stood for a -10.06% since 08/27/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.24 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Canadian Natural Resources Limited, the two-week RSI stands at 34.49. This figure suggests that CNQ stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current CNQ readings is similarly very revealing as it has a stochastic reading of 18.54% at this stage. This figure means that CNQ share price today is being overbought.

Technical chart claims that Canadian Natural Resources Limited (CNQ) would settle between $30.76/share to $31.26/share level. However, if the stock price goes below the $29.82 mark, then the market for Canadian Natural Resources Limited becomes much weaker. If that happens, the stock price might even plunge as low as $29.37 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.93. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Tudor Pickering raised their recommendation on shares of CNQ from Hold to Buy in their opinion released on December 11. Tudor Pickering analysts have lowered their rating of Canadian Natural Resources Limited (NYSE:CNQ) stock from Buy to Hold in a separate flash note issued to investors on October 08. Analysts at National Bank Financial lowered the stock to a Sector Perform call from its previous Outperform recommendation, in a research note that dated back to October 02.

CNQ equity has an average rating of 2.1, with the figure leaning towards a bullish end. 11 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 9 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 8 analysts rated Canadian Natural Resources Limited (NYSE:CNQ) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, CNQ stock price is currently trading at 13.47X forward 12-month Consensus EPS estimates, and its P/E ratio is 11.7 while for the average stock in the same group, the multiple is 14.5. Canadian Natural Resources Limited current P/B ratio of 1.4 means it is trading at a premium against its industry’s 1.2.

Canadian Natural Resources Limited (CNQ)’s current-quarter revenues are projected to climb by nearly 38.4% to hit $3.97 billion, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over 21.5% from $12.97 billion to a noteworthy $15.75 billion. At the other end of the current quarter income statement, Canadian Natural Resources Limited is expected to see its adjusted earnings surge by roughly 145% to hit $0.49 per share. For the fiscal year, CNQ’s earnings are projected to climb by roughly 86% to hit $1.73 per share.