Ovintiv (OVV) Stock

Hotchkis & Wiley Funds, an investment management firm, published its investor letter for the third quarter of 2024 regarding the "Hotchkis & Wiley Large Disciplined Value Fund." You can download the letter here. The S&P 500 Index has increased by 22.1% since the beginning of the year and gained 5.9% in the third quarter.

Ovintiv (OVV) seems to have stabilized after a recent decline, as shown by the hammer chart pattern. Furthermore, the consensus among Wall Street analysts to raise earnings estimates adds to the stock's chances for a recovery soon.

The average price target suggests that Ovintiv (OVV) could increase by 32.9%. Although studies indicate that this measure is not very reliable, a rise in earnings estimate revisions might indicate that the stock could see gains soon.

At Zacks, we concentrate on the reliable Zacks Rank system, which highlights earnings estimates and changes in those estimates to identify excellent stocks. At the same time, we keep an eye on the most recent trends in value, growth, and momentum to support our top selections.

OVV's strong free cash flow and effective drilling make it attractive, but the unpredictability of commodity prices and high transportation expenses could threaten its future earnings.

OVV has purchased valuable Montney assets and sold its Uinta holdings, which increases its oil production ability and improves its cash flow.

On Thursday, Ovintiv announced that it plans to buy specific oil assets in Canada's Montney formation from Paramount Resources for approximately $2.38 billion in cash.

Ovintiv Inc. has agreed to buy around 109,000 net acres and 70,000 barrels of oil equivalent per day in Alberta's Montney region for $2.377 billion. This acquisition will provide about 900 new well locations and extend the life of their premium oil inventory to around 15 years. Additionally, the company plans to sell its Uinta Basin assets for $2 billion, which will enhance its financial position and expected cash flow.

Ovintiv Inc. has a track record of poor value creation and average management choices. While their Q3-2024 results showed good performance and cash flow, their future outlook seems disappointing. Currently, we favor Devon Energy, Chord Energy, and Veren Inc. over Ovintiv.