Coterra Energy (CTRA): Is the Stock Still Undervalued After Its Recent 11% Rally?

Coterra Energy (CTRA) has recently seen its stock climb roughly 11% over the past month, making it a name investors have been watching more closely. While its movement has not been linked to a single clear event, Coterra's value metrics and financial performance continue to attract attention from the market.

See our latest analysis for Coterra Energy.

Coterra Energy’s share price momentum has picked up, with a strong 1-month share price return of 11.5% and solid 1-year total shareholder return of 2.4%. Despite market ups and downs, Coterra’s performance points to renewed investor confidence as energy valuations shift.

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With a recent rally and value indicators suggesting the stock is still trading below analyst targets, the key question for investors is whether Coterra Energy is currently undervalued or if its potential has already been fully recognized by the market. Is this an entry point, or are expectations for future growth now fully reflected in the price?

Most Popular Narrative: 17.4% Undervalued

With Coterra Energy last closing at $26.39, the most widely followed narrative sets fair value at $31.96, suggesting notable upside. This assessment is built on detailed forecasts of the company's future earnings, cash flow, and market positioning.

The deployment of advanced drilling and completion technologies, including successful wellbore redesigns, simul-frac fleets, and longer laterals, has reduced per-foot costs (notably a 12% YoY cost drop in the Permian) and improved capital efficiency. This has created sustainable improvements in net margins and free cash flow.

Read the complete narrative.

Want to know what bold forecasts power this premium fair value? Deep within the narrative lies an aggressive profit outlook and a forward earnings multiple rarely seen in the energy sector. Ready to uncover which optimistic growth levers justify this target price? Click to see the surprising assumptions that put this valuation in play.

Result: Fair Value of $31.96 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in natural gas prices or unexpected operational setbacks could quickly shift the outlook and challenge current growth assumptions.

Find out about the key risks to this Coterra Energy narrative.

Build Your Own Coterra Energy Narrative

If you have a different perspective, or want to dive into the numbers yourself, you can craft your own narrative in just a few minutes. Do it your way.

A great starting point for your Coterra Energy research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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